Bringing Investments to GNSS How can the two meet?

Transcription

1 Bringing Investments to GNSS How can the two meet? 1 December, 2010 SpaceTec Capital Partners GmbH Sendlinger Strasse 22 D Munich Phone: horn@spaceteccapital.com

2 About SpaceTec Capital Partners Mobility Communication Navigation Remote Sensing Integrated Applications Traffic Satellite Information Business Internet Software Hardware IT Process automation Telematics Logistics Resources Security GeoData Risk Environment... Climate Independent partnership backed by private investors. Based in Munich (Germany) 1

3 SpaceTec Capital Partners Services Lines & Client Base Investing Venture Capital Coaching Start-ups Advising Institutions Aristo Telemed AG 2

4 Our Coaching Portfolio Start-up/ Project Business Area High precision digital vector maps and applications Internet-sealed transport container and tracking Mobile activation of locks (vehicles, buildings, PCs etc.) SpaceTec Role Coaching Fundraising/ Investing * Eco-intelligent driving algorithms (CO2 Tracking in Fleets) * Location Based Services for B2B customers (Truck, Automotive) Aristo Telemed AG Telemonitoring of patients * Outdoor navigation system for Blackberry (hiking, running, tourism) Ground-Air broadband laser Communications = Galileo Masters Winners * 3

5 Types of Financing for GNSS Entrepreneurs in Europe Own Capital - will often not get you very far Friends & Family you can only ask them once Bank Credit if you have something which can serve as security Grants / Research Funding - FP7, ESA, : need partners, luck, patience Public Funds - co-financing instruments by member states or regions) Business Angels very useful but difficult to find Venture Capital - smart money in exchange for many shares 4

6 The Venture Capitalist Community thinks in broad categories no radar for GNSS specificities yet! Investing > 1 MN Euro per investment Early stage investments are rare exceptions No. of companies Currently focus on Location Based Services and mobile advertising, using IP and broadband infrastructure Not yet engaging on infrastructure and regulated applications (e.g. logistics, transport, security) Little experience in working with public institutions and space authorities Source: EVCA/PEREP Analysis 5

7 (Apr 10) 6

8 Business Angels are helpful in early stages but engaging them systematically is very difficult Profile: Former successful entrepreneurs who want to further their wealth and work with teams they like Wealthy individuals who do not like fund instruments Strengths: Trust-based & gut-feeling investment Fast decisions Willing to take more risk (also in early stages) Provide coaching and network Flexible investment time horizon Ideal candidates for public co-investments Challenges: Some bias for regional/nearby investments Very heterogeneous community Not systematically engaged by GNSS community 7

9 The GNSS Funding Chain Instruments and its GAPS Idea / Invention Incubation Seed-Round A-Round B Exit Interest Awareness Office & Network Business Services Near Public Money > 1.000k FP7 Programme Non-Space Business Plan Competitions Other Incubators Regional State Funds Business Angels EU Risk Capital Fund for SME in GNSS? Venture Capital Coaching and Smart Private Co-investment Open Sky Technology Fund (ESA) 8

10 Expert Voices on GNSS Applications Financing at a DG ENTR stakeholder workshop Idea / Invention Incubation Seed-Round Seed-Round Financing A-Round Financing B Exit More PRIVATE INVESTORS are needed - ready to coach startup companies Public funds are a means of pushing forward the investment value chain The GALILEO Masters competition aims at deal flow generation The current FP system does not allow to link R&D to markets Need stronger involvement of BUSINESS ANGELS in the respective incubation schemes Private Investors are not aware of the huge potential of satellitebased applications services ESA Investment Forum offers access for the investment world to valuable deals Selected quotes from Workshop Documentation 9

11 Tourism & Transport Applications: A SpaceTec Capital Portfolio Example 10

12 Better maps for high precision navigation Agriculture Public Sector Customer need: Include farm tracks and paths for optimal farm navigation in order to improve planting and harvesting efficiency UM solution: Matching and conflation of Navteq data with enhanced datasets Customer need: Enhance data for pedestrian and bicycle navigation UM solution: Consulting services for improving workflows as well as enriching datasets using UM technologies Navigation Consumer Applications Customer need: Add detailed vector data for bicycle and outdoor navigation UM solution: Production and delivery of Navteq data conflated with enhanced datasets Customer need: More detail than in traditional maps for intermodal mobile navigation UM solution: Walk&Ride app works offline at any time/any place and delivers highly detailed maps for multimodal navigation to iphones and ipods 11

13 The coaching and investment story behind March 08 October 08 July 09 Dec 10» 6 iphone Apps» B2B customers» Finalist Navteq LBS Challenge» Research project» Showcase» 3 founders» IP secured» Technology proven» Supplier agreements» 13 staff» Cooperation agreements» Germany map ready» Tackling cities in Europe» 15 staff» Exit process started SpaceTec Capital Partners Role: Matching Finance Partners + Co-Financing Coaching with GNSS and relevant industry network 12

14 Public co-financing helped to create success cases USA Key Data Revolutionary software to display 3D geo data on the internet Spin off from Intrinsic Graphics (3D graphics specialist) in 2001 Location: Mountain View, CA, USA 2004: TradeSale / Renaming to... Seed Start - Up Expansion Later Stage Business Angels 2001 Financing History & Exit Sony CVC NVIDIA Business Angels In Q Tel (CIA Fund) Trade Sale Profit Loss EU China Start-up formed in Berlin in 1999 as Gate5 GmbH Leading provider for software and services for LBS and information on mobile devices 2000: Winner of the E-economy award 2004: additional financing round 6,5 MN 2006: Trade-sale to Nokia Berlin today hub for Nokia s LBS activities (200 staff) Founded as private IT service company in the 90s Leading player in developing and marketing a digital map database and software. Revenue 57 MUSD Serving China Mobile, Bing Maps, BMW and Audi Only digital map provider in China with Category A aerial photogrammetry capability IPO at NASDAQ raised 108 MUSD Seed Start - Up Expansion Later Stage Brandenburg Capital IBB Innoven Partners Target Partners Brandenburg Capital IBB Trade Sale Seed Start - Up Expansion Later Stage 199x Private Funding 2001 Sequioa KPCB Walden IPO Profit Loss Profit Loss 13

15 EU Institutions should close remaining gaps in GNSS innovation funding chain to activate private funds GNSS Idea Contests FP7/FP8 Research Programme Tap the innovation potential beyond the GNSS community (IT, applications) Make attractive for commercial players by further simplification of process Link R&D funds to market development Incubation Centers and Networks SME Support in EU priority applications Venture Capital & Business Angels Complement bricks & mortar with specialised coaching programmes Develop an EU-driven risk capital fund Leverage private know-how and coinvestment as sanity check for public Cooperate closely with specialised private co-investors Win pure private investors for GNSS 14

16 Contact 15