Gate2Growth: The Business Matching Service A Gate2Growth financial services.

1. Gate2Growth: The Business Matching ServiceA Gate2Growth financial services. IRE Workshop on Innovation FinancePrague, Nov. 15th Niko Van GoubergenInvestment Analyst

2. Agenda • The Gate2Growth Initiative • www.gate2growth.com • The Financial Service: Business Matching • Type of financing • Our portfolio • Statistics on the European VC scene in CEE countries

3. The Gate2Growth Initiative • 4 Thematic Networks • Academic Network • InvestorNet • Incubator Forum • Proton • EU networks • Business Angel Networks • Commercial Partners / Service providers • Cooperation with Paxis • The business matching activity • Diagnostic

4. http://www.gate2growth.com FINANCE www.Gate2Growth.com Dedicated Networks InvestorNet Entrepreneur A www.Gate2Growth.com Matching service Entrepreneur B Business Angel Networks New / Events / Forums Entrepreneur C Investor Database Projects & Investment opportunities Service Provider Database Gate2Growth Investor Network ... Commercial Partners INNOVATION PROFESSIONAL

5. http://www.gate2growth.com

6. http://www.gate2growth.com Website Facts • 3365 entrepreneurs • 242 active investors and 1868 investor profiles • 1900 Innovation professionals • News and events • Toolbox with downloadable templates • Service center for local support

7. Is a company ready ? • Business plan? • Stage of development of the company • Type of investment? • Valuation? • Management team ready ? • Has the management team enough time and energy to raise funds • Is the team shaped to talk to investors? • Does the company know where to go?

8. Financial Services : Business Matching For entrepreneurs • We are the human interface of the Gate2Growth initiative • We represent the ‘offline’ business network of Gate2Growth • Provide business plan support • Provide account management • Identify relevant investors • Prepare entrepreneurs for investor contacts • Identify co-investors For investors • Access to deal-flow that matches investor preferences • Investment services for investor portfolio companies • Syndication partners

9. Financial Services : Business Matching We service entrepreneurs with the following characteristics: • Innovative entrepreneurs with a complete business plan, looking for venture capital in Europe. • The company should have strong management team, developing an unique patent protected technology with a global application potential We service venture capital funds with the following characteristics: • Investment teams with money available, actively looking at deals to invest in. • Focus on Europe, with strong industry networks in life sciences, ICT, Nanotechnologies, etc. • Venture capital funds that wish to divest out of one of their portfolio companies

10. Financial Services : Business Matching Deal flow source X Dealflow gets in Dealflow is screened Research on investor community Targetted investor approach Deal flow source Y Deal flow source Z • The entrepreneur registers his company onour website. • The entrepreneur registers his company profile • A QUALIFIED businessplan is uploaded on the website

11. Financial Services : Business Matching Deal flow source X Dealflow gets in Dealflow is screened Research on investor community Targetted investor approach Deal flow source Y Deal flow source Z • Gate2Growth team screens business plan, • Gate2Growth team signs a service agreement • Gate2Growth team advises entrepreneur in rewriting business plan when needed • Gate2Growth team advises entrepreneur in preparing meetings with investors

12. Financial Services : Business Matching Deal flow source X Dealflow gets in Dealflow is screened Research on investor community Targetted investor approach Deal flow source Y Deal flow source Z • Gate2Growth team consults their pan-European network of investors (I-TecNet, Gate2Growth network, commercial partners) • The team selects carefully investors, very focussed (industry/location) • First contact with investor in checking out the ground for further discussion

13. Financial Services : Business Matching Deal flow source X Dealflow gets in Dealflow is screened Research on investor community Targetted investor approach Deal flow source Y Deal flow source Z • Gate2Growth team assists in due diligence procedure with investor(s) • Financial agreement made between investor and entrepreneur

14. Capital requirement IPO/ Stock Markets Corporate investors/ Large VC funds Classical Venture Funds Business Angels FFF Growth/ Expansion. Start-up Development M&A/Restructuring Seed Type of financing Bank loans

15. Type of Financing • To search Private Equity: you can choose between: • Venture Capital / Companies • Many public accessible directories • Other sources of private equity • Lots of directories • Business Angels • Over 20.000 BA’s throughout Europe • Difficult to find (use BA networks) • How to choose?  Networking

16. Pros No cost of interest and no fixed repayment schedule Stronger financial position Reduced financial pressure Access to professional network and coaching Private Equity Cons • Loss of management / ownership control • Request for strong financial dicipline • Influence on management and strategic decisions • Exit route for investor to be prepared

17. VC Easy to find via directories. Your request is only one among many hundred a VC receives. Can often via syndication provide large investment. Thorough and formal due diligence and investment proces. Exit route very important. Venture Capital versus Business Angels BA • Difficult to find. • Request often strong personal involvement. • Limited amount to invest • Investment decisions often quick and less formal. • Syndication more and more usual. • Exit route less in focus

18. Timing for a VC $ Disruption revenue $ Revenues Out Of PRODUCTS Revenues Out Of SERVICES Stage of development

19. Our portfolio Representing Industries Representing Countries • Software companies • Telecommunications • Biotechnology • Life sciences • Nanotechnology • New materials • ... ?

20. Our portfolio • Computer Hardware & Software 2 • New materials 2 • Energy 1 • Nanotechnology 2 • Medical devices 4 • Biotech 1 • Communications 1 --- • Pipeline 14

24. 2004 Year-to-Date Investments per Category(source: TI Research)

25. 2004 Year-to-Date Investments per Round(Source: TI Research)

26. Sustainable Relationship You can help successful innovative entrepreneurs securing their financing needs by signposting their investor ready business plans to the Gate2Growth Business Matching Services We secure access to finance for portfolio companies We provide assistance in targeting key investors We enable a pan-European investor base We provide access to business plan writing tools We assist in fine-tuning the business plan Incubators, Innovation Centers & other Support Players Gate2Growth Business Matching Service

27. Business matching team Gate2Growth.com St-Jacobsmarkt 97 2000 Antwerpen T: +32 (0)3 231 65 00 F: +32 (0)3 213 36 00 E: info@gate2growth.com niko.vangoubergen@gate2growth.com W: www.gate2growth.com