1. The European Venture Fund Investors Network
EVFIN
Richard Hepper
Capital for Enterprise, UK
Enterprise
Nordic-European Investor Summit
Stockholm 24th November 2011

2. Table of contents
1. About EVFIN
2. EVFIN VC Fund of Funds project
2

3. 1.1. About EVFIN
 Venture capital helps to drive economic
competitiveness, ffacilitating new business creation,
innovation, job creation and economic growth
 VC is important for SMEs, who face the greatest
difficulties accessing finance, yet offer greatest growth
potential
 The funding gap is greater in the EU than the US
 VC fund investors can play an essential role in
supporting the best emerging VC managers across the
EU
3

4. 1.1. About EVFIN
 Set up in March 2011 in response to the continuing
funding crisis in the venture capital sector across
Europe
 A platform for dialogue, gathering 11 major national
VC operators (€24bn under management)
p ( g )
representing 9 European countries
 M tl public Fund of Funds, th all f t equity
Mostly bli F d f F d they ll foster it
financing for SMEs through supporting best VC funds
and contribute to develop domestic VC markets
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5. 1.2. EVFIN Objectives
 To share best practices among EU VC fund investors
 To act as a partner to the European Institutions
 To encourage the set-up of a pan-EU joint initiative
g p p j
 To offer opportunity for a constructive dialogue
between EU VC industry and the EU institutions – EC,
y ,
EIB, EIF, EVCA, et al
 EVFIN initiative has developed from the conclusions of the
EU Council meeting of Feb.4, 2011 calling on the EU
Commission to present proposals for putting in place a EU
VC scheme building on the EIF and national operators.
5

6. Table of contents
1. About EVFIN
2. EVFIN VC Fund of Funds project
6

7. 2.1. The EU VC Market: a Continuing Funding Crisis …
 Since 2007, the EU VC industry has suffered from a sharp
contraction of its investment capacity affecting SMES
access to finance:
- Amounts raised b VC f d d
A t i d by funds dropped b more th 70%
d by than
between 2008 and 2010**
- Amounts invested by VC in SMEs decreased by 50% between 2007
and 2009*
 Fundraising for VC funds is more and more difficult
 The equity financing gap in the EU is becoming bigger,
putting at risk th EU growth potential
tti t i k the th t ti l
*EVCA Quarterly Activity Indicator Q1 2007- Q3 2010, November 2010.
** Dow Jones Venture Source 2011 7

8. 2.2. … calling for an emergency action plan
 Need to implement an emergency action plan to
support the VC sector
 The EVFIN VC fund of funds (F-o-F) project : a
groundbreaking joint initiative designed to pool capital &
expertise of VC national operators in a common pan-
EU investment vehicle to select best VC firms & increase
their funding >> bottom up development of VC markets
 A cost-effective but also be quickly operational project
cost effective
complementing EIF operations which could serve as a
pilot project for future EU support programs to risk capital
(2014-2020)
(2014 2020)
8

9. 2.6. EVFIN VC F-o-F : Investment Objective
j
 To provide access to finance to innovative and high
g
growth SMEs by being a catalyst for the development
of a pan-EU VC industry through commitments in VC
funds in the EU
 To tackle the EU VC market fragmentation and give VC
funds the critical mass they need to operate trans-
nationally & to support the continued growth of innovative
companies
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10. 2.9. Features of EVFIN VC F-o-F Project
j
 E
Expected size of th F F € 250 million
t d i f the F-o-F: illi
 F-o-F first closing target date: 2013
g g
 Investment period: 4 years
 Investment Focus: mainly early stage, cross-border VC
funds managed by established and newly-created VC
management companies
 Term: 12 to 15 years
Term:
10

11. Contact
Lola Merveille
Secretary General of EVFIN
37, Square de Meeus – 1000 Brussels
Tel: +32 2 504 80 06
lola.merveille@caissedesdepots.fr
lola merveille@caissedesdepots fr