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(1)

Corporate Venture Capital

Innovation Funding

Innovation Lab 2014

Innovation Lab: Corporate Venture Capital

PDFaid.com

(2)

Veronica Tottone Davide Cristiano

Vincenzo Terracciano

(Coordinator)

Intesa Sanpaolo

Letizia Gabbrielli

Selex ES

Lucia Marchisio

Telecom Italia

Professionals

Team

Gabriele Torti Marco Russo Veronica Tottone Davide Cristiano

Academics

Dream Team

Michele Serri Piero Tonelli

Roberto Barontini

Scuola Superiore Sant’Anna

Andrea Piccaluga

Scuola Superiore Sant’Anna

(3)

Definition & Mission

Global Market Analysis

Seeding a future growth: Investment Goal

Table of contents

Structure & Governance

Portfolio Strategy: Investment Management

CVC Models in a Snapshot & Case Analysis

Italian Scenario

Our proposal: Vertical Corporate Venture Capital

Survey’s Process Results

Table of contents

Survey’s Process Results

(4)

CVC is defined as equity investments in small, young and privately held entrepreneurial companies by

established corporations, usually motivated not only by financial goals, but mainly by strategic interests”.

(our elaboration from Chesbrough and Tucci, 2002)

Corporate Venture Capital: Definition & Mission

Open Innovation is the use of purposive inflows

and outflows of knowledge to accelerate internal

innovation, and expand the markets for external

use of innovation.

(Chesbrough 2003)

Definition & Mission

Corporate Venture Capital is part of the wider Open

Innovation model, it speeds up corporate innovation

processes through external innovation keeping

control of its financial aspects.

(5)

CVC: Cross National Comparative Analysis

15% of CVC global number 15% of CVC

global number 4% of CVC global

number 4% of CVC global number

2571,8

504,3

50,4

344,6

CVC 2012 spending

(million USD) >65% of CVC global number 2,77% r&d/gdp Strong public support for start-ups

>65% of CVC global number 2,77% r&d/gdp Strong public support for start-ups 1,94% r&d/gdp Attractive valuation (lower median multiples than US) Fragmented tax policy 1,94% r&d/gdp Attractive valuation (lower median multiples than US) Fragmented tax policy <2% of CVC global number 4,38% r&d/gdp Strong public support for high tech start-up and R&D

<2% of CVC global number 4,38% r&d/gdp Strong public support for high tech start-up and R&D number 1,97% r&d/gdp Developed market of later stage investments number 1,97% r&d/gdp Developed market of later stage investments

2571,8

50,4

Sources: Crounchbase data export, OECD iLibrary

PricewaterhouseCoopers (2014), 'National Venture Capital Association MoneyTree™ Report', Thomson Reuters Restart Italia, Ministero dello sviluppo economico, 2013

Studio Icom per fondazione Lilly, Presenza ed impatto economico delle “start up” innovative di successo: un confronto internazionale, 2013

Global Market Analysis

USA is the main corporate venture capital market.

(6)

Corporate Investment Goals: Strategic vs Financial

CVC preferred objective

O

p

e

ra

ti

o

n

a

l

lin

k

Focus on exit value of ventures strictly

related to Corporate core business

Focus on achieving impact strategy through integration of ventures with the

core business

EMERGENT

DRIVING

50%

CVC Investments strictly

depend on investor’s goal

The strategic focus is

Corporate Venture Capital, Seeking Innovation and Strategic Growth- NIST, 2008

O

p

e

ra

ti

o

n

a

l

Long term goal, possibility to:

explore white-spaces leverage underutilized technology

experiment new capabilities develop back up technology

Exploitation innovation strategy,

unable to produce disruptive innovation

Common benefits:

promoting standard, improve market share and technology efficiency

Focus on exit value of ventures Pro-cyclic investments: “opportunistic”

to positive economic cycle (Bull market)

Focus on core business market

proximity Exploration-exploitation innovation strategy

PASSIVE

ENABLING

15% 15% 20%

Strategic More Strategic than Financial

Financial More Financial than Strategic

The strategic focus is

predominant in CVC

investment.

CVC literature evidences

investments not only strictly

linked with core business

but also in cross sectors.

Seeding a future growth: investment goal

to positive economic cycle (Bull market) No immediately clear benefit for

corporate BU Stakeholders

strategy

Develop ecosystem network Stimulate corporate demand by offering

(7)

Corporate Venture Capital Models

Corporate/direct

investments

Objective : Strategic Level of Innovation: Explotation

Risk of investment: Low Risk

CVC Model

Key Dimensions

Structure

Observations

Maintains control of all investment decisions.

Receive all strategic returns.

Risk of inefficiency due to the absence of

External

Subsidiary Fund

External

Risk of investment: Low Risk to the absence of

professional VCs.

Greater opportunity for disruptive innovation. Greater opportunity to discover new emerging

businesses and technologies. Requires greater

resources and committment.

Objective : Primarily Strategic

Level of Innovation:

Explotation & Exploration

Risk of investment: High Risk

Objective : Primarily Financial

Level of Innovation:

The key is selecting the right model for the intended CVC goals.

Three Key Dimensions should be considered: Objective, Innovation and Risk of Investment.

External

indipendent Fund

Greater opportunity for disruptive innovation.

No investment decision-making power

Level of Innovation: Exploration

Risk of investment: High Risk

(8)

Business developer CTO 22% R&D 3% CEO 14% Investment board 12% Report Cross Competencies: Technical, Commercial and Economical

Investment Team

Investment Team

Performance Team

Performance Team

Strategic & Emerging Business Opportunities Valuation

Business Performance & Results Valuation

Governance: Organization & Team Competencies

Organization

Know-How

developer M&A 18% Business Unit 6% CFO 25% Compensation

Technology Team

Technology Team

Financial Team

Financial Team

New Technology & Technical developments Valuation Financial Sustainability Valuation Treasury Investment

Intel Capital

Different competencies

Global corporate venture capital survey 2008-2009- E&Y

Fixed salary plus carried interest,

7%

Only fixed salary, 5%

For the success of a CVC fund, a key aspect

is to align the cvc goals with the reporting and

the compensation’s system of the CVC Team

.

Corporate venture capital group Survey- EVCA 2012

Cross Competencies are required to manage

a CVC fund.

Marketing Business

Development M&A

Fixed salary plus bonus similar to carried interest,

15% Fixed salary plus

company bonus, 73%

(9)

Portfolio Strategy: Investment Key Dimensions

Private Equity

Stock Market

Stage of Investment

Sector of Investment

Percentage of Total CVC Industry Transactions by Target Industry

24% 29%

4% 43%

Percentage of Deals by Stage of Investment

Corporate Venture Capital

Business Stage Seed Early Extension Later Consolidate

Entrepreneur FFF Incubator Accellerator Angels Crowdfunding Venture capital Private Equity Business Stage

The CVC investment focus is expanding.

Companies explore market adjacences going

beyond their core competencies.

CVC represents a link between investors in

financial Markets and Investors in seed stage.

Boston Consulting Group 2012

Portfolio Strategy: Investment Management

(10)

Identifying partnership/alliance opportunities Identifying partnership/alliance opportunities

CVC Supporting Services:

Business Development Opportunity

There are many advantages to working with CVCs. They can offer funding as well as access to new customers, more advantageous supply chain relationships and skilled expertise in business areas required.

CVC

Supporting

Services

CVC

Supporting

Services

Marketing, Sales and Distributions Marketing, Sales and Distributions Access to R&D teams and facilities Access to R&D teams and facilities Fundraising Fundraising opportunities opportunities Fundraising assistance Fundraising assistance Global expansion/ operations Global expansion/ operations

Compared to other forms of financing, CVC can

help Start-ups to fill the strategic and operative gap.

Global corporate venture capital survey 2008-2009- E&Y

(11)

CVC Models in a Snapshot

External Independent fund

Structure

CVC Financial Model

Internal dedicated fund

CVC Strategic Model

Experienced VCs and potential

secondees from corporate

Fixed + Bonus on Financial KPI

Passive investments

Focus on Seed and Early

Start-ups

Based on CVC fund

competences

Governance

Compensation

Portfolio

Start-ups Support services

Internal corporate resources

Fixed + Bonus on Strategic KPI

Enabling/ Driving investment

Focus on Expansion and Later

Start-ups

Based on Corporate Start-ups

synergy

CVC Models in a Snapshot & Case Analysis

competences

IRR, ROI

Success Measures

synergy

Measurements of direct

strategic inputs

(12)

Healthcare 95% Business/Cons umer/Retail 3%

Case Analysis 1

Corporate:

Johnson&Johnson

Year of foundation:

1973

Mission

«JJDC determines the success of an investment’s performance not only in financial returns, but also in the viability of

providing strategic

growth options for Johnson & Johnson».

Maximum Investment (MM):

€ 4.16

N

°

°

°

°

of Companies currently in Portfolio:

224

Portfolio Strategy

With a specific focus on Healthcare

In particular

Medical Devices &

Geographical Distribution

IT 1% 95% Other 1% Europe 10% Israel 5% North America 84% JJDC invests primarily in North America and Europe. Johnson & Johnson».

Source Corporate Venture Capital Fund Profiles

O p e ra ti o n a l lin k EMERGENT DRIVING

Source Dow Jones

Medical Devices & Diagnostics

Pharmaceuticals & Biotechnology Consumer Products

Source Corporate Venture Capital Fund Source Corporate Venture Capital Fund Profiles

Structure and Investment models

Seed

4%

Seed

4%

Early 17% Early 17% Asia 1% Expansion 20% Expansion 20%

Later

37%

Later

37%

Investment Stage

JJDC considers all the investment stages.

O p e ra ti o n a l PASSIVE ENABLING

Source Dow Jones

(13)

Portfolio Strategy

With a specific focus on IT, Mobile, Energy and Healthcare

In particular

Corporate:

Google

Year of foundation:

2009

Total Assets Under Management:

$1,5 billion

N

°

°

°

°

of Companies currently in Portfolio:

209

Mission

«We look for entrepreneurs with a healthy disregard for the impossible. Our team is so divers and so is our appetite for investing – we work with companies in virtually any sector and at any stage of the journey. We

Case Analysis 2

In particular

Medical Devices & Diagnostics

Biopharmaceuticals & Biotechnology, Energy,

Consumer Products, Media

Source Corporate Venture Capital Fund Profiles

Geographical Distribution

Source Dow Jones virtually any sector and at any stage of the journey. We

invest for financial return».

Source Corporate Venture Capital Fund Profiles

Google invests primarily in North America, with

particular focus in California. O p e ra ti o n a l lin k EMERGENT DRIVING

Structure and Investment models

Seed

17%

Seed

17%

Early 43% Early 43% Expansion 16% Expansion 16%

Later

19%

Later

19%

Source Dow Jones

Investment Stage

Google considers all the investment stages.

O p e ra ti o n a l PASSIVE ENABLING

(14)

Our Proposal

Vertical Corporate Venture Capital

(15)

Italian Key Elements for CVC prospects

Few but important CVC players

Italian structural aspects

100 industrial districts

Industrial overview

Media

(2014) (2000) (2002)

Corporate Investor: 20% of

the investment (27% for social and green start-up)

100 industrial districts SME’s = 99,9% Large companies = 0,1% 34th place

Tax deduction

VC & PE Attractiveness Index (OECD - 2014)

Media

for

Equity

(2013) (2013)

Italian competitive market

Fashion

Automation Furniture Agroindustrial Other Italian districts

Italian Scenario

Following the introduction of a Tax deduction

on investments and due to its industrial

structure, Italy would need a CVC model

appropriate to its characteristics.

social and green start-up) investment upper limit €1.800.000.

Individual Investor: 19% of

the investment (25% for social and green start-up) investment upper limit €500.000.

(16)

Our Proposal: Vertical Corporate Venture Capital

Vertical Market

Second Level

.

Mission: Develop a cross national and cross industry

FUND HIGHLIGHTS

FUND HIGHLIGHTS

Public Investors

We propose to apply the Vertical Corporate Venture Capital as the best way to introduce this financial instrument and exploit the potentiality of the Italian production system that is based on industrial districts and many SME’s.

Fund

Portfolio

VERTICAL

CORPORATE

FUND

First Level

Suppliers

Manifacturer

Fund Leaders

Second Level

Suppliers

START UP #1

Core Sector

START UP #N

Cross Sector

national and cross industry innovation network to speed up investor innovation process.

Key aspects:

External Subsidiary fund

Cross industry investments to

exploit complementarities and synergy for the all the investors.

Strong investors commitment

Public Investors

START UP #2

Core Sector

Our proposal: Vertical Corporate Venture Capital

Distribution

Cross Sector

Strong investors commitment for start-up Business

Development.

Corporate resources to fill start-up competence gap.

Financial Institution

(17)

Strategical Valuation. Composed by

CTO, CIO and Business Developer of fund partner companies.

AD Selection and Investment

Approval. Composed by CEO and CFO

of fund partner

Strategic

Strategic

Vertical CVC Governance

Investment Board and Strategic Committee are designed to balance investors financial commitment and minor investor boardroom presence.

Strategical Valuation and Fund Coordination

fund partner companies.

of fund partner companies.

Start-up Investment Selection and Negotiation.

Composed by External Professionals.

Scouting

Team

Scouting

Team

AD

AD

Investment

Board

Investment

Board

Strategic

Committee

Strategic

Committee

Flexible teams established ad

Supporting

Teams

Supporting

Teams

Flexible teams hoc in order to help start-up established ad

growing up according to their

organizational and business needs. Composed by Partner Firms competencies. Engineering & R&D Engineering & R&D Business Development Business

Development

Marketing

Marketing

Finance

Finance

HR

HR

Our proposal: Vertical Corporate Venture Capital

Teams

Teams

(18)

Vertical CVC: Investment Decision Process

Scouting Scouting

Scouting Team

Screening

Evaluation of technoloqy,business model, market and financials.

Screening

Evaluation of technoloqy,business model, market and financials.

Due Diligence Due Diligence

Investment Board

Strategic Committee

Scouting Team

Due Diligence

Checklist to identify concrete business opportunity.

Due Diligence

Checklist to identify concrete business opportunity.

Negotiation of investment contract Negotiation of investment contract

Final Deal Evaluation

Strategic and technology evaluation of each deal.

Final Deal Evaluation

Strategic and technology evaluation of each deal.

Funding Approval

Investment board reviews each investment proposal and approves funding.

Funding Approval

Investment board reviews each investment proposal and approves funding.

Supporting Teams

Start up’s Supporting Process

According to their organizational and business needs.

Start up’s Supporting Process

According to their organizational and business needs.

Final Exit Final Exit

(19)

Vertical CVC: Automotive Example

First Level

Suppliers

2 Members:

FCA BOSCH SAMSUNG

2 Members:

FCA BOSCH SAMSUNG

Investment Board

Investment Board

Second

Level Suppliers

2 Mln €

VERTICAL

CORPORATE

FUND

200 mln €

40 Mln € SAMSUNG SIEMENS

1 Member:

BREMBO MAGNETI-MARELLI SAMSUNG SIEMENS

1 Member:

BREMBO MAGNETI-MARELLI

Strategic Committee

Strategic Committee

AD and Scouting

Team

AD and Scouting

Team

Manufacturer

35 Mln € 35 Mln € Main Investor 50 Mln € 15 Mln € 2 Mln € 2,5 Mln € 20 Mln €

Strategic Committee

Strategic Committee

Supporting Teams

Supporting Teams

2,5 Mln € 500 K €

(20)

Three relevant dimension to evaluate the investment portfolio:

Target industries

Investment Stage

Investment Areas

Investment target industries

Investment target industries Investment stageInvestment stage

Vertical CVC: Investment Dimensions

Start-up technology/strategic value prevails over development stage in the investment decisions.

Investment areas Investment areas Investors in Automotive ecosystem Example of adjacencies Interest sector Innovation Area

HealthCare User comfort

TLC

Infotainment System

Automotive Network Control Units

Vertical CVC aims to develop a cross national industrial district.

Investors in Vertical CVC will take advantage of technology developed in adjacency sectors.

NanoTech

Contactless Locks

Material Science Innovative Materials

(21)

Goals

KPI

Number of technology agreements

Number of distribution agreements

Number of co-marketing agreements

Cost saving to shared production

Number of startups acquired by fund partners Ecosystem

network development

Vertical CVC: Compensation

Number of patents registered

Value of licenced royalties

Number of technologies collaboration agreements

Products time to market R&D

Effectiveness

Change in market share of investors technology Ecosystem Change in market share of investors technology

standards/products

Perceived investors images as innovator Ecosystem

business development

Manager MBO is strictly alligned to fund main objectives by the right mix of performance

indicators.

(22)

Surveys’ Process Results

Preparation

• Literature analysis.

• Preparation and dispatch of 2 surveys for CVC and NO CVC companies in such sectors as Utilities, Energy, Healthcare, Consumer, Financial,

Industry, IT, Media, Service and Telco.

• Literature analysis.

• Preparation and dispatch of 2 surveys for CVC and NO CVC companies in such sectors as Utilities, Energy, Healthcare, Consumer, Financial,

Industry, IT, Media, Service and Telco.

Survey

Survey

• The main 600 companies performing CVC activity and the 100 Corporate

venturing Executives taken from the ‘Global CVC Powerlist 100’.

• 2500 European companies NOT performing CVC activity taken from the ‘Amadeus’ database (Top 250 per sector for revenue).

• The main 600 companies performing CVC activity and the 100 Corporate

venturing Executives taken from the ‘Global CVC Powerlist 100’.

• 2500 European companies NOT performing CVC activity taken from the ‘Amadeus’ database (Top 250 per sector for revenue).

Report

• Elaboration of results.

• Dispatch of a CVC report showing the relative positioning of the respondents compared to the average sample results.

• Elaboration of results.

• Dispatch of a CVC report showing the relative positioning of the respondents compared to the average sample results.

Report

Surveys’ Process Results

(23)
(24)

Appendix

Further deepening:

Corporate Venture Capital Main Trends

Corporate Venture Capital Main Trends

Main Reasons to do Corporate Venture Capital

CVC Terms and Conditions

CVC Final Acts

Comparison of measures for investors and start-ups

Italian laws and fiscal aspects

Back up

Italian laws and fiscal aspects

(25)

Global CVC Investments Trend

80% 90% 100% 100.000 120.000 80% 90% 100% 7.000 8.000 9.000

Global Trend of CVC investments

($ Mln)

Global Trend of Number of Deals

0% 10% 20% 30% 40% 50% 60% 70% 80% 0 20.000 40.000 60.000 80.000

% coming from CVCs Tot Investment CVC Investment

0% 10% 20% 30% 40% 50% 60% 70% 80% 0 1.000 2.000 3.000 4.000 5.000 6.000 7.000

% with Corporate involvement Tot # # of CVC deals

National Venture Capital Association: MoneyTree™ Report', Thomson Reuters – PwC 2014 National Venture Capital Association: MoneyTree™ Report', Thomson Reuters – PwC 2014

The average number of CVC deals is about 15% of VC ones.

After the dot-com bubble in 2000, total investments stabilize over 25 billions $ a year.

CVC investment represents about 8% of total investments in Venture Capital.

(26)

Global CVC Investments: Sector & Geographic Region

17,7% 27,7% 20% 25% 30% Japan; 48 Asia Pacific; 27 Oceania; 7

Total Investment by Geagraphic Area

Total Investments by Sector

17,7% 1,9% 2,5% 0,9% 0,9% 1,2% 11,6% 8,2% 6,5% 9,3% 0,8% 4,0% 3,8% 2,7% 0% 5% 10% 15% 20% USA; 766 South America; 10 Europe; 155 Africa; 2 Middle East; 27 India; 36 China; 45 Japan; 48

Biotech and software industry account for more than 50% of total CVC deals.

Retailling/Distribution presents the higher average investment per deal.

USA account for more than 65% of global CVC deals distribution.

Canada; 14

National Venture Capital Association: MoneyTree™ Report', Thomson Reuters – PwC 2014

National Venture Capital Association: MoneyTree™ Report', Thomson Reuters – PwC 2014

(27)

Main reasons to do Corporate Venture Capital

4,6 4,7

Window on new market opportunities Map emerging innovations and

technical development

Strategic impact factors

Financial Goals

Overall financial results 31% CVC activity 18% 3,7 3,7 3,8 3,9 4,2 4,6

Identify and establish partnership and joint ventures Develop relationships with IVCs Provide additional revenue growth opportunities for parent companies

Develop new products Import or enhance innovation within

existing business units Window on new market opportunities

Performance of individual investments 19% Value-added contribution to business units 17% CVC output 15%

Global Corporate Venture Capital survey 2008-09, E&Y

The main CVC strategic aims deal with the increasing of company innovation level and discovering new market opportunities.

The most agreed financial objective focuses on achieving overall financial results.

3,2 3,4

Leverage internal technological developments Identify acquisition candidates

Global Corporate Venture Capital survey 2008-09, E&Y

(28)

Terms & Conditions

Benefits for

Corporate investors

It allows the investor to influence Start-ups activity taking a full voting member seat on them board.

them board. It gives investor a lot of power

because

it has veto right over Start-ups initiatives.

Investor gets the option to invest directly in a start-up with a partner reducing his financial effort.

It postpones the value of the investor’s equity simplifyng the negotiation with Start-ups.

It allows investor to defend his share when other investors decide to finance the start-ups.

ups. Investor gets the chance to be paid first in

case of such events as liquidation or company sale.

It’s a balance between the control of the Corporates and the start-ups’ freedom.

Global corporate venture capital survey 2008-2009- E&Y

(29)

CVC Final Acts

Avg VC 5,8 yr

Avg CVC 4,5 yr

Preferred Exit Strategy

Holding Period

(yr)

Global Corporate Venture Capital survey 2008-09, E&Y Global Corporate Venture Capital survey 2008-09, E&Y

Trade sale is the most common exit strategy in CVC. CVC average holding period is significantly lower than VC due to support provided with several services and extensive network.

Average CVC holding period is around 4 years.

Global Corporate Venture Capital survey 2008-09, E&Y Global Corporate Venture Capital survey 2008-09, E&Y

(30)

Comparison of best measures for investors and start-ups

Public Funding Co-funding in R&D Tax benefits Exemptions from corporate legislation Exemptions from labor law legislation

Territorial

programs Best practice

√ √ √ √ − √ Reduction of 50% of the cost

Each country is characterized by a particular measure of success for investors and start-ups.

USA √ √ √ √ − √ Reduction of 50% of the cost

for the patent application.

GERMANY √ √ √ √ − √

High level of competitiveness of the taxation and particular

benefits for companies.

ISRAEL √ √ √ − − −

Governmental support of $ 300 million for hi-tech enterprises and R&D.

CHINA − √ − √ − √ Territorial program to attract

investors in high-tech areas.

− √ √ √ − √ Tax concession for start-ups

FRANCE − √ √ √ − √

Tax concession for start-ups covers up to 30% of all annual

costs of R&D.

ITALY √√√√ −−−− √√√√ √√√√ √√√√ −−−−

Tax benefits in favor of investors and measures to

encourage start-ups.

Source: Studio I-Com per Fondazione Lily (2013), “Presenza ed impatto economico delle start-up innovative di successo: un confronto internazionale.

(31)

Innovative start-up requirements - Italy

The Decree Law, n. 179/2012 entitled "Further urgent measures for the growth of the Country", converted with

amendments by Law n. 221/2012, introduced in the Italian legislative framework the definition and the specific

requirements of innovative start-ups.

In addition, one of the following

List of requirements

Must not be listed and almost 51% controlled by individual shareholders.

Must have been incorporated for no longer than 48 months.

Must have reached total annual revenues of no more than €5 million;

Must never have distributed dividends.

Its statutory object primarily provides for the production and marketing of innovative products or services of high technological

R&D must not be less than 20% of the higher value between cost and total revenues of the innovative start-up.

No less than one third of the total labor force must be composed by employees or associates with a PhD or still attending a PhD course.

The start-up must be the owner, the licensee or the user of an industrial patent.

In addition, one of the following

conditions must be met:

List of requirements

Source: Art. 25 del D.L. n. 179/2012 converted in L. n. 221/2012.

Back up

products or services of high technological value.

Must have not been formed by a merger, corporate split or as a result of the sale of the business or business unit.

(32)

Italian measures to encourage start-ups:

Decreto Crescita 2.0

Low establishment costs and favoured system on losses.

If the requirements are met, Innovative Start-Ups benefit the following measures:

Regulations on fixed-term work more flexible than other firms.

Management incentives: stock option and work for equity.

Tax credit of 35% for permanent employment of highly qualified personnel.

Free access to the ‘Fondo Centrale di Garanzia’ for the state guarantee (up to 80%) on bank

lending without additional guarantees.

Collection of risk capital through online portals (equity crowdfunding).

Simplified procedures for liquidation and closure.

Source: Ministero dello Sviluppo economico (2013), “Per un’Italia sempre più a misura di startup: Stato di attuazione della policy a sostegno delle startup innovative a un anno del Decreto Crescita 2.0.

(33)

Dilution

Protection

It protects

start-up’s owners

avoiding equity reduction in

case of external investor capital participation.

Vertical CVC: Terms & Conds

Direct

co-investment

option

It allows 2 or more industrial partners of the fund to invest

together whether avoiding possible conflicts or giving more

financial resources

to the smallest partners.

Liquidation

preference

It helps protect Corporates

(even the Small and Medium

ones)

from losing money by making sure they get their initial

investments back before other parties.

investments back before other parties.

The 3 best terms and conditions to be applied to protect and

benefit Corporate, especially the smaller ones, and Start-ups.

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