Partnering for growth

DTU Symbion Innovation and SEED CapitalDTU 42435 Entrepreneurship 2009

Agenda• DK Venture overview• SEED Capital• Investment criteria• The process from idea to investment• After the investment – how do we work• An example – Amminex• A few cases more

Capital Return Benchmark Ladder

• Cash -2% inflation loss• Bonds/Obligationer 3-5%• Active trade Bonds/Obligationer 4-7%• Stocks/Aktier 5-8%• Active trade Stocks/Aktier 7-10%• Hedging 10-15%• Enterprises internal rate of return 12-18%• Private Equity/Venture Capital 20-25% (ATP 7½% of portfolio)

(Danica 72% of portfolio)

(Danica 18%% of portfolio)

The Venture Capital Industry

Public EquityPrivate Equity

Real EstateSecondariesMezzanineBuy OutVenture Capital

Pre-SeedSeedStart UpExpansion

Danish Venture Capital eco-systemDVCA (Danish Venture Capital Association)

– 250 Members

• Capital / Buy Out funds• VC’s (22)

– Life Science– ICT– Energy– Other

• Innovationsmiljøer (6)• Business Angles

Venture Capital Value Chain

University

Entrepreneur

Pre-Seed

Capital

Seed/

Start-up

Capital

Expansion

Capital

Exit

IPO

Trade sale

Idea Investment rounds

Proof of Concept

AcceleraceConnect Denmark

Gazelle Growth

Pre-Seed

Capital

Seed/

Start-up

Capital

Expansion

Capital

7 Government funded pre-seed investorsInvests 100 MDKK / yInnovationsmiljøer

The Venture Industry in Denmark

+20 Venture Capital companiesLocal and few large pan Nordic VC’sMore than 20 BDKK under management

DTU Symbion Innovation

Pre-Seed Capital

33 MDKK / y

40+ companies

10-12 investments/year1 – 4 MDKK/investmentGovernment funded

3-5 investments/year5-30 MDKK/investmentClassic VC Mostly privately fundedAlmost 1 BDKK under management

DTU Symbion Innovation and SEED Capital in brief

SEED Capital

530 MDKK

~20 companies

Cooperation with Leading Universities in the region

– DTU – Risø– KU - University of Copenhagen – ITU - IT UniversityOther Partners:– HS - The hospitals in Greater Copenhagen– Delta - GTS Institute– Bioneer - GTS Institute– SCION - Science park– Symbion - Science park and manager of support

programs

- Investment team

Partners

Life Science

ICT

Cleantech

29%17%

26%28%

Investment focus

Bio

Medtech

ICT – HW, SW

Cleantech and other

Since December 2004 a total funding of DKK 1.4 bn. Total Danish venture capital funding 2007 was DKK 2.5 bn.

We are very good at attracting Funding

Total 2005-2007

1.369

0

100

200

300

400

500

600

2005 2006 2007

DK

Km

Other private SEED CapitalSymbion Capital Innovationsmiljø (IM)

437 422

517

Strong international syndicationSelected syndication partners :

• Accel, US

• DeNovo Ventures, US

• TMP, US

• Conduit, UK

• Yasusida, JP

• Solvey, B

• Ferd, N

• Novo Ventures

• Novo SEED

• IVS/Northcap

• Vecata,

• Aravis

• Novartis Venture

• Astellas

• APIDS

• Vækstfonden

• Business Angels (30+)

• Northzone, N,DK

• BioFund Ventures, Fi

• InnFond/Inventures

• Coloplast

• Krones AG, D

• iXcore, F

• Malmøhus Invest, S

• Lumitec, S

• Sarsia Innovation, N

• BioVision

• Syddansk Innovation

Investment criteria

Management team with good track record/reputationRelevant and complimentary industrial backgroundsStrong and operational board / investor base

Documented unmet need / “true customer pain”Tangible / well definedUSD 250m+ market

Breakthrough and proprietary Sustainable competitive edgeDanish centre of competence

Focused, coherent and scalableRelevant / realistic in relation to market dev. and funding

SEED investment can be defendedMultiple exit options /clear “better owner”

Market

Technology

People

Business Model

Exit

Market

• Market (A big puzzle)• Value Chain• Market Size• Customer Segments• Competition

Investment criteria

People

Technology

SalesManagement

Support

Investment criteria

Investment Process• Screening/deal flow 200/y

- Advising

• Detailed investigation 36/y- Business Plan Assessment- Market analysis- IPR analysis- Negotiation of Terms

• Investments 12/y

• Hands on approach– Board Member– Business Development– Organization Development– Fundraising

• Exit after 6-8 years

Post Investment

Hydrogen storage technology. Safe and efficient storage in solid form.

DTU founder team

Pre-Seed investment

Of which two joined the company as employees

In 2005 by DTU Innovation/SEED Capital

Post Investment Two additional investment rounds by SEED Capital and 3 International VCs

Asic’s for microphones use in mobile phones, hand-set’s etc. Enable digital microphones and adding new features

Pre-Seed investment In 2003 by Symbion/SEED Capital, a Business Angel and Vækstfonden

Post Investment

Achievements

Few internal investment rounds

Pilot Customers

Exit Sold to Analog Devices for 112-159 MDKK

Portfolio examples

High efficient power supplies. 50% lower heat dissipation/energy loss.

Pre-Seed investment 2008 by SEED Capital and DTU

Post Investment Build Board, Initializing fundraising

Achievements Pilot Customers

Portfolio examples

Q & A