Post on 13-Nov-2014
description
Nordic-European Public Investor Initiative WorkshopJohan Bjørkevoll
Fund Management
A governmental toolboxA governmental toolbox
• Worked with over 9000 cases in 2010• Worked with over 9000 cases in 2010• 650 employees in over 30 countries• € 680 mill. awarded in various grants, loans, guarantees and g , , g
equity schemes• 2 of 3 € go to innovative projects• Owned by the Ministry of Trade and Industry 51 %• 19 county municipalities of Norway 49 %
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Our servicesOur services
Promotional
Financing servicesPromotional
servicesservices
Competenceservices Advisory
Networking services
services
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An international organizationAn international organization
OFFICES IN REPRESENTATION IN MORE EVERY COUNTY THAN 30 COUNTRIES
Contributes to higher value creationContributes to higher value creation” Without Innovation Norway's measures, there is reason to
believe that Norwegian value creation would have been lower"believe that Norwegian value creation would have been lower.
• Correct structure and good organization• Innovation degree must be even higherg g• Has to make the adviser role more clear for
owners and principals
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Helps businesses growHelps businesses grow150
130
140
110
120
90
100
2003 2004 2005 2006 2007 2008
Verdiskaping i alle IN‐foretak fratrukket foretak som mottar BU‐midlerVerdiskaping (Fastlands‐Norge)Sysselsetting i alle IN‐foretak fratrukket foretak som mottar BU‐midlerSysselsetting (Fastlands‐Norge)
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Seed capital fundsSeed capital funds• 15 private funds, € 13 – 45 mill• Governmental capital 50 % – 70 %• Governmental capital 50 % – 70 %
• Subordinated loans with a loss fund• Horizon up to 15 yearsp y• Strictly commercial, board decisions• Over 250 investments
Seed capital fundsSeed capital fundsPrivate capital Public funding
Co-investors
Seed capital fund
Lessons learnedLessons learnedRelay race or Food chain?
Lessons learnedLessons learnedWassum evaluation (NHD), 2003
• Good supply of private capital• Transfer of skills - satisfactory• Transfer of skills - satisfactory• Unattractive model for risk reduction• Costly administrative form - small fundsy
Lessons learnedLessons learnedMenon evaluation (NHD), 2009
Seed Funds established in 1998• Comprehensive analysis of 175 portfolio companies• Comprehensive analysis of 175 portfolio companies• Poor results
Seed Funds established in 2006• Positive response from investors• Positive response from entrepreneurial companies• Revealed clear need for a nationwide seed capital funds• Recommend new funds with state participation
Topic for discussions:Topic for discussions:Governmental support• What is the difference between governmental support and
governmental commercial investments?• What is the preferred way to allocate governmental • What is the preferred way to allocate governmental
support?• Risk reduction for the investors• Tax incentives• Asymmetrical returns
• Will this always result in second class funds and second class investments?
Invention & Value creation quizInvention & Value creation quiz
What is one of the greatest invention of all time?
Many would say the wheel Many would say the wheel.
Invention & Value creation quizInvention & Value creation quiz
Smart idea, but a wheel has not created much value. has not created much value.
Invention & Value creation quizInvention & Value creation quiz
The person who invented the second wheel made much more impact.