the h2020 sme instrument “phase 3”...research and innovation the h2020 sme instrument “phase...

Research andInnovation

The H2020 SME instrument “Phase 3”

Uffe Bundgaard-Jørgensen Ph.D.

InvestorNet - Gate2Growth

Vice-chairman H2020 Risk Financing Advisory Group

DTI – Tåstrup January 12th 2016.

By

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Gate2Growth is supported by the European Commission

InvestorNet - Gate2Growth Partner in Greeonvat-Europe

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InvestorNet

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partner in

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Partner in Greeonvat-Europe

Funding

• Guarantee schemes for Banks

• Funding for new VC funds

• Other Initiatives to make funding easier

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500 new deals/year

Screening

process

250 selected deals

150 selected deals

10 min/deal

20 min/deal

75 analysed deals 4 Hours/deal

50 negotiation

5-10

investments

10 Days/deal

490 rejected deals

1 month/

investment

Investor questions:

If I believe in the business

plan and the budgets

can I make money?

Do I believe in the business

plan and the budgets?

Is it realistic ? Can this

management deliver the

promised results ?

Ok, would you like to

meet us and discuss?

Are you ready to start

serious negotiations.

The unsolicited deal Funnel

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500 new deals/year

Screening

process

2 min/deal

250 selected deals

150 selected deals

10 min/deal

20 min/deal


50 negotiation

5-10

investments

10 Days/deal

490 rejected deals

1 month/

investment

Investor questions:

Do I like the business

concept and - model ?



can I make money?

Do I believe in the business




promised results ?






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500 new deals/year

Screening

process

2 min/deal

250 selected deals

150 selected deals

10 min/deal


50 negotiation

5-10

investments

10 Days/deal

490 rejected deals

1 month/

investment

Investor questions:




plan and the budgets,

can I then make money?



promised results ?






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500 new deals/year

Screening

process

2 min/deal

250 selected deals

150 selected deals

10 min/deal

20 min/deal


50 negotiation

5-10

investments

10 Days/deal

490 rejected deals

1 month/

investment

Investor questions:





can I make money?

Can I trust the business




promised results ?






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500 new deals/year

Screening

process

2 min/deal

250 selected deals

150 selected deals

10 min/deal

20 min/deal


50 negotiation

5-10

investments

10 Days/deal

490 rejected deals

1 month/

investment

Investor questions:





can I make money?



If it is realistic, can this


promised results ?






page : 13



500 new deals/year

Screening

process

2 min/deal

250 selected deals

150 selected deals

10 min/deal

20 min/deal


50 negotiation

5-10

investments

10 Days/deal

490 rejected deals

1 month/

investment

Investor questions:





can I make money?





promised results ?






page : 14



500 new deals/year

Screening

process

2 min/deal

250 selected deals

150 selected deals

10 min/deal

20 min/deal


50 negotiation

5-10

investments

10 Days/deal

490 rejected deals

1-3 month/

investment

Investor questions:





can I make money?





promised results ?



Let us move into the



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500 new deals/year

Screening

process

2 min/deal

250 selected deals

150 selected deals

10 min/deal

20 min/deal


50 negotiation

5-10

investments

10 Days/deal

490 rejected deals

1-3 month/

investment

Investor questions:





can I make money?





promised results ?



Let us move into the



H2020-SME PRE-QUALIFIED

InvestorNet

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partner in

Lad os drømme!

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Hvorfor ikke flyve til Agra via Delhi ?

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Er du af og til nervøs for at flyve ?

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Bruger du altid “sikkerhed sele” i taxaen til hotellet ?

Lad os nu forestille os at vi er kommet til Delhi og

tager en taxa til hotellet.



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The reality is

• Death rate / billion km travelled (British Civil Aviation statistics)

– A: Flying: 0,003

– B: Train: 0,27

– C: Car: 2,57

• Death number (for 2015)

– Aircraft accidents worldwide: 375

– Car accidents (Denmark only): 167

The less familiar you are with a situation, the bigger the perceived risk is,

the more your brain plays tricks with you!

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Your way of making decisions and that of investors

“System 2” allocates attention to the effortful mental activities including complex computation. It is also associated with the subjective experience, choice and concentration.

“System 1” operates automatically

and quickly, with little or no effort and

no sense of voluntary control.

InvestorNet

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partner in

In face of uncertainty often

”System 1” prevails.


InvestorNet - Gate2Growth partner in

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If you want to attract investors and have a

working relationship with them, you need to

”talk to” both ”System 1” & ”System 2”



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Superior

product

Good

Management

Customers

Right

Business

modelInvestment

opportunity

The first part of the book is about requirements for a good business case.

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Let us move on to investors



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• Is the mindset of investors different from

the one of normal human beings?

• Is that the reason you often get a NO?

• Investors are normal human beings, and

”fear,” ”greed”, ”lust” and ”anchoring”

effects influence their behavior and

decisions.

• In the end, they base their investment

decisions on a combination of thorough

analysis and ”guts feeling”.

Investors and other human beings

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Investment analysis and due diligence?

Calculation,

statistics

and

financial

modelling?


InvestorNet - Gate2Growth partner in

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Market analysis deception

• Statistics are better for

world markets.

• Market estimates for

regional or local markets

are uncertain.

• No information about

small market segments.

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Despite all the formal analysis

…the final investment decision is based on a sort of

“holistic” assessment of the opportunity:

do I believe in what I am told?

do I understand it and can I trust them?

is it realistic?

can they make it?

can I make money?

is this opportunity better than all the other

opportunities available?

do I have bad/good experiences from similar cases?

InvestorNet

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partner in

This is actually what the book is about.

We hope it will be useful for both

entrepreneurs and investors.

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I was not alone while

writing the book,

here are the co-

authors

Louise Pierrel MikkelsenM.Sc. in Accounting, Strategy and Control6 years of experience: Business Development & Business Skills for Non- MBAs

Rasmus Egvad M.Sc. in International Business6 years of experience: Business Plan evaluation, Business Development, Funding, Consulting

Carmen Bianca SocaciuM.Sc. in International Marketing & Management from Copenhagen Business School3 years of business experience with screening and coaching on investor readiness

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InvestorNet

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partner in

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