EIT Health is supported by the EIT, a body of the European Union

Accelerate & scale your business with Venture Capital: are you ready?

Muriel Uytterhaegen, Gimv| Rotterdam | 25/02/2016

Company presentation2

Gimv, a pioneer in continental Europe since 1980

UNIQUE STRENGTHS & DIFFERENTIATION

• Funding from strong balance sheet, complemented with specialised co-investment funds

• Long-term active support to portfolio companies

• International reach with a local touch, strong brand & network

• Focus on value creation via 4 platforms

• Flexibility in investment instruments and exit timing, given evergreen fund structure

FACTS & FIGURES• Listed on Euronext Brussels• EUR 1.8 billion AUM• 35 years of expertise in PE & VC• 100 employees in 4 offices

DIVERSIFIED PORTFOLIO

Health & Care3

What can Gimv mean for you?Our H&C platform is looking at a broad range of deal types

• We focus on companies active in Benelux, France and DACH• We invest across the H&C value chain in Biotech, Medtech and Services

• A clear value creation thesis is the cornerstone of our investment strategy and we actively

support our portfolio companies in the execution thereof

• We have a flexible investment horizon• Our investment stages depend on the sub-segment

CONCEPT PRODUCT/SERVICE REVENUE PROFIT MATURE TICKET SIZE

BiotechBiopharma Pre-clinical Early

clinicalLate

clinicalEUR 3-15 mio

Medtech Pre-revenue Pre-profit

H&C Services Pre-profit Growth stage EUR 10-40 mio

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1. DIFFERENT TYPES & SOURCES OF FINANCING

Types of financing - simplified

• Loans• have to be repaid• carry interest• require collateral• used for equipment, work in progress, suppliers

• Equity• owns part of the Company• seeks capital gains• no guaranties• used for product development, marketing

• Quasi-Equity• loan convertible in equity

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Sources of capital/cash

• Personal assets• 3 F’s : Friends, Family and Fools• Business Angels• Government subsidies (IWT, EU, ESA, …)• Crowdfunding• Cash flow from customers• Professional investors

• Banks• Private Equity providers• Venture Capital providers

• Stock market

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Financing Life Cycle

• Knowledge-based CompaniesC

AS

H-IN

TIME

VCs, Acquisitions/Mergers &Strategic Alliances

Angels, FFF

Seed Capital Early Stage

Later Stage

Mezzanine

3rd

2nd

1st

IPO

PublicMarket

SecondaryOfferings

Valley of Death

Public Company

Operating Cash Flow

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2. ARE YOU INVESTOR READY?

Evaluation of the risks & potential: what & how?

• In depth investigation and analysis

• How?• Limited access to data• (potential) clients, industry experts , trend watchers

• 6 major dimensions

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1. Idea/Technology2. Product/ market3. Value chain4. The business model5. An excellent team?6. Financial assumptions

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1. Idea/Technology

• How difficult is it for others to copy your idea?• To what extent have you tried to protect your idea?• Costs/benefits of your strategy ?• Freedom to operate?• ...

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2. Market Potential

• Commercial feasibility • A product / market matric gives an overview of the relevant market segments and

the possible product variations. • How and to what extent did you already segment the market ? • Did the concept survive the test of reality?• Timing!• ...

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3. Value chain

• How will you reach the end consumer?• Who is most profitable in the value chain? • Negotiation power towards other parties in the value chain?• Do you have partners where a win-win is possible?• ...

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4. The business model

• Value proposition & market segment• Revenue generating mechanisms• Recurring revenues? • Price-setting? Does it reflect the customer value ?• Potential growth model?• ...

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5. Team

• Team recruited so far? • Balance? Different typical functional roles?• Is the team complementary?• What is the experience of the team?• Incentivized?• Open to external capital?• ...

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6. Financial assumptions

• Expected revenues? Timing! • View on net working capital? • Investments: are they realistic compared to the expected realisations? • ...

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3. WHAT VC’S LIKE & WHY INVESTMENTS FAIL

VC’s prefer to invest in

• Entrepreneurs and a team• Technology as sustainable competitive advantage

• strong and clean intellectual property/capital• proof of concepts exists and mode of action is understood

• A business model we understand and like• Growing and huge markets• Focus combined with mutant potential• Exit perspective @ x multiple

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Why investments fail?

• Technology• The technology being developed by a start-up may just plain not work. • The technology works in the lab, but takes too long to scale up to a point where the

economics work. • The technology works, but something better comes along.

• Market• The dogs won't eat the dog food. • Existing solutions may be "sticky" because of existing infrastructure. • The hoped-for market never materializes within the investment timeframe.

• People• Gaps in the management team skill set.

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Concluding & contact info

• “Only those who are asleep make no mistakes.” – Ingvar Kamprad

• “Risk comes from not knowing what you are doing.” – Warren Buffett

 Muriel UytterhaegenPrincipal T  +32 3 290 21 22  I  M  +32 473 84 48 39 Karel Oomsstraat 37  I  2018 Antwerpen  I  Belgium www.gimv.com