ANNUAL REPORT 2013 BID NETWORK

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Annual report BiD Network Foundation 2013 - 1

ANNUAL

REPORT

2013

BID NETWORK

Amsterdam, April 2014

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Annual report BiD Network Foundation 2013 - 2 CONTENTS

INTRODUCTION ... 3

LOOKING BACK AT 2013 ... 4

MISSION AND GOALS ... 6

ONLINE PLATFORM ... 6 ADVISORY SERVICES ... 7 MAIN PARTNERS ... 9 RESULTS ... 12 PROJECT BIDX ... 19 SECTOR CHALLENGES ... 20 COACHING PROGRAM ... 23

INVESTOR MATCHMAKING SERVICES ... 24

UNITED ENTREPRENEURSHIP COALITION... 27

INTERNATIONAL PARTNERS ... 28

GOVERNANCE AND ORGANIZATION ... 33

ACCOUNTABILITY ... 35 FORECAST 2014 ... 40 FINANCIAL REPORT 2013 ... 42 RESULT ... 42 BALANCE ... 44 BUDGET 2014 ... 46 FINANCIAL STATEMENTS ... 47

ACCOUNTING PRINCIPLES FOR FINANCIAL REPORTING ... 50

NOTES TO THE BALANCE SHEET ... 53

NOTES TO THE STATEMENT OF INCOME & EXPENDITURE ... 58

INDEPENDENT AUDITOR’S REPORT ... 66

ACCOUNTABILITY STATEMENT OF THE SUPERVISORY BOARD ... 67

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Annual report BiD Network Foundation 2013 - 3 INTRODUCTION

A growing belief in the potential of stimulating entrepreneurship as a means to create jobs and overcome poverty has resulted in a

considerable increase in the number of organizations operating in the field, both in BiD Network’s home market The Netherlands and

internationally.

Because we see a growing need for financing for a growing number of entrepreneurs in emerging markets and at the same time a growing number of investors interested in finding these entrepreneurs and financing their businesses, we used 2013 to sharpen up and prepare our organization for an even more professional and efficient service delivery to both ends of this pipeline.

We have started to expand the reach of our matchmaking services by seeking and starting new strategic partnerships with investors and by using competitions and local partners to locate entrepreneurs in need of financing.

BiD Network and its funding partners recognize the importance of continuing to reach out to entrepreneurs in the lower end of the missing middle (USD 10,000 to 1,000,000). Women in business and social entrepreneurs that generate impact for people and planet (i.e. clean energy, health and safety solutions, environmental issues and job creation) form a growing group that will provide jobs to overcome poverty. We will increase our focus on these groups and look into processes to support and improve our service delivery to both investors and entrepreneurs.

Adjusting a strategy to evaluate and decide on your role in global developments is a must in these fast times, so that’s how we kick off 2014. All staff and volunteers of BiD Network are involved in deciding how BiD Network can best continue to serve its beneficiaries and guarantee delivery of the best services possible.

Paul van Aalst

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Annual report BiD Network Foundation 2013 - 4 LOOKING BACK AT 2013

To improve the effectiveness of our investor matchmaking services, BiD Network has increased its focus on investor interests and on generating deal flow. This meant investing in the capacity for financial analysis and deal structuring for BiD Network and partners, and

offering integrated online solutions through the bidX online platform for deal sourcing, business planning and investor matchmaking services. We have adapted BiD Network’s internal organization, by making better use of the expert resources of our daughter company bidX on marketing and service development, and by attracting expertise for financial modeling and deal structuring.

In March, after an internal evaluation we concluded that progress in realizing the bidX online services was promising, but would require extra time and budget to reach a commercial launch. We adjusted our organization accordingly, while we started to explore new strategic financing partnerships. In the fourth quarter it became clear that an excellent strategic opportunity was available from one of the existing partners of bidX, Sampoerna Mekar Pte. Ltd. By the end of 2013 we reached a full agreement on spinning off bidX to Sampoerna with effect from 1 January 2014. The investment by Sampoerna will speed up the completion and launch of the bidX platform and online service

development, and provides bidX with a dedicated corporate environment that will mature this initiative of BiD Network,

Sampoerna, and initial sponsors the Dutch Postcode Lottery, USAID and the Department for International Development (DFID). As part of this spin-off, bidX will be fully independent from BiD Network as of January 2014. Thierry Sanders will move on as director of bidX while Hendrik van Gent will continue as the director of BiD Network. BiD Network wishes Thierry and his team success with the further development of bidX.

These adjustments in 2013 have absorbed great amounts of energy from the BiD Network team and siphoned away attention from project and service delivery. This caused a material negative impact on our results, such as the number of finance ready plans. While it was our intention to increase our results and thus our impact, these stayed more or less on the same level as the years before. Late 2013, the team and partners boosted the pipeline of entrepreneurs and business plans as well as investors through five events (Amsterdam, Kigali, Bujumbura, Mexico and Amman) that were all more than ever focused

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on matchmaking. The team intensified contact with entrepreneurs and investors in the process of matchmaking. Financially, BiD Network closes 2013 with a considerable negative result of EUR 1,300,000, mainly due to extra costs related to the strategic changes and the financing structure of bidX development. The good news is that with the already contracted income for 2014 and the structurally lowered costs, 2014 is expected to close with a positive result of over EUR 400,000. In terms of outputs and results BiD Network performed less than planned and less than in 2012, mostly due to the turbulence in Q2 and Q3. With the outputs from the boosts in Q4 and a restructured organization, BiD Network is now more than ready to focus on project delivery and on providing investor matchmaking services. BiD Network will continue to use the online services of the platform and will work closely together with bidX in serving entrepreneurs, investors and other clients.

Hendrik van Gent BiD Network Director

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Annual report BiD Network Foundation 2013 - 6 MISSION AND GOALS

BiD (Business in Development) Network Foundation is registered as a Foundation under Dutch law at the Chamber of Commerce in

Amsterdam with registration number 34264155. BiD Network has its registered offices at De Ruyterkade 107, 1011 AB in Amsterdam. The Foundation was incorporated on 29 December 2006.

BiD Network’s mission is to contribute to sustainable economic growth in emerging markets through entrepreneurship. BiD Network does this by preparing entrepreneurs for investors.

Small and medium sized enterprises (SMEs) are the backbone of any economy. By creating jobs and income, they are crucial to the

economic and social development of emerging markets. They are also a powerful force against poverty. However, businesses often encounter difficulties getting started or growing because they lack access to finance and know-how.

BiD Network aims to:

 Start and grow businesses in emerging markets;

 Create jobs and income through these businesses;

 Mobilize private capital and know-how to businesses.

BiD Network focuses on businesses in developing countries with a financing need of USD 10,000 – USD 1,000,000. We provide

professional services to entrepreneurs, coaches, investors and financial service providers.

BiD Network operates its services together with a network of international partners in Burundi, Ecuador, Colombia, Indonesia, Jordan, Kenya, Kosovo, Liberia, Mexico, Palestine, Peru, Philippines, Rwanda, Tanzania and Uganda. These partners are business and financial service providers.

ONLINE PLATFORM

The core of BiD Network is the web-platform www.bidnetwork.org. This website, with around 55,000 members, offers entrepreneurs the

opportunity to participate in business plan competitions, work on their business plan, get advice from coaches and be matched with investors. Since mid-2011 the website was operated by BiD Network’s subsidiary bidX. Through 2013, BiD Network and Sampoerna Mekar Pte. Ltd. have invested in the company. BiD Network has done so through the ‘G20

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project’ funded by IFC with grants from USAID and DFID, and through the ‘BiDx10 project’ funded by the Dutch Postcode Lottery. BiD

Network spun off bidX in January 2014 to Sampoerna Mekar Pte. Ltd.

ADVISORY SERVICES

BiD Network offers investment-related services to entrepreneurs and investors and supports international partners in strengthening their services to prepare SMEs and investors for finance. With its online platform, BiD Network has a targeted and global tool for deal sourcing, business planning and matchmaking for entrepreneurs, coaches and investors. These online services are complemented by (‘offline’) advisory services by our staff and international partners. These advisory services are based on standardized packages developed by BiD Network and adapted by staff and international partners to local contexts. They range from Ready4Finance training and certification of trainers, to support on how to source and prepare entrepreneurs for finance and how to establish local coaching and investors networks. Our international partners directly serve entrepreneurs, coaches and financiers in their respective regions.

In 2013, BiD Network has offered the following services to our international partners (see chapter International Partners):

Advisory services

BiD Network has offered our partners Advisory Services on:

 Using the online platform www.bidnetwork.org and competition, business planning, matching and moderation functionalities;

 How to run a business plan competition;

 How to prepare entrepreneurs and provide feedback on business plans;

 How to set up a coaching network;

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Annual report BiD Network Foundation 2013 - 8  How to set up investor networks and offer matchmaking services

to entrepreneurs.

Ready4Finance training of trainers and certification

Ready4Finance, developed by BiD Network and funded by Hivos and FMO, is a modular training package designed for business service providers that want to support SMEs in their start-up and growth, and access to finance. The curriculum covers all aspects of business and financial planning and getting access to finance. Written with investors’ requirements in mind, the courses teach entrepreneurs how to write a business plan, choose the right financial options for their business, value their company, structure an investment deal, prepare a suitable exit, pitch effectively, build a management team, and negotiate with an investor. International partners have been trained to become certified license holders of these training. To date, over 3,000

entrepreneurs participated in Ready4Finance training sessions and 41 trainers of 10 business service providers have been certified to conduct one or more modules.

Besides providing services to our international partners, BiD Network delivered the following services to other clients:

International Sector Challenges

Sector Challenges are business plan competitions targeting a specific sector or theme. These were organized in collaboration with partners that want to promote businesses and investments in a specific sector or country, within the framework of their CSR program. In 2013, the fourth edition of the Women in Business Challenge took place in collaboration with ING Bank, ICCO and UnitedSucces; the ICT

Challenge in collaboration with EY, TNO, eVentures Africa Fund, SEAF and the Palestinian Investment Fund as part of the United

Entrepreneurship Coalition program was concluded; and the third edition of the Ondernemen Zonder Grenzen competition took place, in collaboration with NCDO, EY and De Investeerdersclub.

Coaching Program

In our coaching program BiD Network links entrepreneurs with professionals from corporate organizations and NGOs who support entrepreneurs in their business planning. Formal partnerships in 2013 existed with ING Bank, EY and PUM.

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Growing SMEs events

Growing SMEs events were organized in Rwanda – with an East African focus – and in Mexico – with a Latin American focus. In Jordan, a pitching event took place bringing Palestinian and Jordanian entrepreneurs and investors together. Growing SMEs is an

international event which aims to explore and share the latest trends in developing, growing and financing SMEs in emerging markets; while bringing together and matching entrepreneurs and investors.

Investor Matchmaking Services

BiD Network has an international network of around 250 investors and supports this network to identify finance ready viable business

propositions. BiD Network supports entrepreneurs to prepare a ‘ready for finance’ business and financial plan, an elevator pitch and investor factsheet and to identify an investor.

MAIN PARTNERS

Dutch Postcode Lottery

The Dutch Postcode Lottery (Nationale Postcode Loterij) has been a main partner of BiD Network since 2008. The Dutch Postcode Lottery was established in 1989. It aims to support organizations working to create a fairer, greener world by raising funds and increasing public awareness

with the help of a lottery. Since 2008, BiD Network has received a total of EUR 5,145 million.

“BiD Network demonstrates that entrepreneurship and poverty reduction can go hand in hand, and makes effective use of the new opportunities provided by the internet.” - Marieke van Schaik –

Managing Director Dutch postcode Lottery Dutch Ministry of Foreign Affairs The Dutch Ministry of Foreign Affairs has been a main partner of BiD Network since its establishment in 2007. It

emphasizes private sector development as the key to economic growth, and as

one of the most important means towards poverty alleviation. Between 2007 and 2010 the Dutch Ministry of Foreign Affairs funded BiD

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Network directly. Since 2011 BiD Network has received funding from the Dutch Ministry of Foreign Affairs through the MFSII United

Entrepreneurship Coalition with SPARK Foundation. One of the Ministries’ employees stated the following:

"BiD Network is a very young dynamic organization, able to respond quickly to new developments and opportunities. The assistance from BiD and partners is very much appreciated by entrepreneurs. BiD Network has developed into a well-known organization in The

Netherlands mobilizing hundreds of volunteers for coaching, screening and jury membership. BiD Challenges have resulted in a large number of business plans submitted by entrepreneurs."

SPARK

Since 2011, SPARK and BiD Network have been coalition partners in the United Entrepreneurship Coalition, a five-year program funded by the Dutch Ministry of

Foreign Affairs (MFSII). This program focuses on strengthening business service providers and supporting SMEs in Burundi, Kosovo, Liberia, Palestine and Rwanda. SPARK, founded in 1994, develops higher education and entrepreneurship so that young ambitious people are empowered to lead post-conflict societies into prosperity. SPARK works closely with a range of local partners to build cooperative, locally sustainable networks of support for promising entrepreneurs.

IFAD

The International Fund for Agricultural Development (IFAD), a specialized agency of the United Nations, was established as an international financial institution in 1977 as one of the major

outcomes of the 1974 World Food Conference. The conference was organized in response to the food crises of the early 1970s that

primarily affected the Sahelian countries of Africa. It resolved that "an International Fund for Agricultural Development should be established immediately to finance agricultural development projects primarily for food production in the developing countries."

The goal of the IFAD is to enable poor rural people to improve their food and nutrition security, increase their incomes and strengthen their resilience. IFAD also acts as an advocate for poor rural women and men. IFAD’s multilateral orientation provides a strong global platform

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for discussing rural policy issues and increasing awareness of why investment in agriculture and rural development is critical to reducing poverty and improving global food security.

International Finance Corporation

The International Finance Corporation (IFC), a member of the World

Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries.

Established in 1956, IFC is owned by 184 member countries, a group that collectively determines our policies. IFC’s work in more than a 100 developing countries allows companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives.

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Annual report BiD Network Foundation 2013 - 12 RESULTS

During 2013 BiD Network and bidX offered joint services on the platform of bidnetwork.org. In view of the envisaged migration to the new platform of bidX, limited resources were spent on the development of new functionalities on bidnetwork.org. Maintenance and customer support was provided as usual, to ensure quality service provision. Customer requests were handled by the bidX customer services team within 16 working hours and received an average client satisfaction rate of 90%.

Despite cost cutting measures and the restructuring of the organization, key targets were realized up to the same level as 2012. Like in 2012, the percentage of entrepreneurs who submitted a full business plan after having created an application was low. This may partially be related to the complexity and extensiveness of the business plan template. In the design of the business summary template for the bidX groups we have adapted this. At the same time we, as well as jury members for our competitions, noticed a raise in quality of business plans submitted.

In a period of 7 years our network of business coaches has expanded rapidly to 1,795 voluntary coaches by the end of 2013. A number of coaches have been very active, supportive and committed for a longer period and some of the coaches were active in the past. In 2014, BiD Network will adapt the coaching services to ensure we can dedicate our time optimally to serve our active group of coaches who are supporting entrepreneurs to get ready for finance.

Due to the implementation of strategic changes some of our results are lower than expected. This includes the number of finance ready plans. At the end of 2013 a new matchmaking strategy was developed, which will be implemented in 2014. In 2014 our portfolio management will be improved by allocating more efforts and resources to this service for investors and ready for finance

entrepreneurs, which we identified as one of the key values our organization can add within the worldwide SME support sector.

Remarkable are the online results achieved by our international partner BBIN in Burundi, a country where the internet penetration is still relatively low. Other positive outcomes are the matches made in the Philippines and Kenya, countries where efforts of BiD Network and our international partners to build up an

investor network as well as matchmaking services are truly paying off.

Thanks to the growing success of the Women in Business Challenge, 43% of all full business plans were submitted by woman entrepreneurs; whereas in the period from 2005 – 2012 the average percentage was 26%. Some other facts about the full business plans submitted in 2013:

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Annual report BiD Network Foundation 2013 - 13  69% of the plans were submitted for a registered business; 31% of the

plans were submitted for an unregistered business.

 57% concerned a start-up business and 43% an established business;

 Amounts of finance needed were ranging from USD 10,000 – 50,000 (23%), USD 50,000 – 100,000 (17%), USD 100,000 – 500,000 (37%) and more than USD 500,000 (23%).

 Most plans submitted were for businesses in the services sector (34%), followed by agriculture, forestry and fishing (18%) and manufacturing (16%).

From 2005 to 2012 BiD Network surveyed entrepreneurs who benefited from our services during the previous year, to collect information on their business

progress. Due to increased monitoring efforts in 2013 we received a 68% response rate, compared to 51% in 2012. Of all respondents to our surveys we know that more than 1,000 SMEs supported by BiD Network have started or grown in between 2005 and 2013, creating over 6,000 jobs.

BiD Network aims to achieve results efficiently, maximizing the jobs created and businesses started or grown per EUR of budget spent. The average costs per job created are EUR 3,154 (BiD Network expenses of EUR 2,378,684 in 2012

resulted in 754 jobs) and the average costs per SME started or grown are EUR 13,363 (BiD Network expenses of EUR 2,378,684 in 2012 resulted in 178 SMEs started or grown). bidX and BiD Network share the non-financial KPIs and impact results, but apply their own financial results and efficiency ratios.

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Annual report BiD Network Foundation 2013 - 19 PROJECT BIDX

BiD Network uses the web-platform www.bidnetwork.org. This website with over 55,000 members offers entrepreneurs the opportunity to participate in business plan competitions, work on their business plan, get advice from coaches and be matched with investors.

Since mid-2011 the website is operated by BiD Network’s spin off company bidX. bidX shares the office with BiD Network. BiD Network and the Sampoerna Mekar Pte. Ltd. have invested in the company. BiD Network has done so through the G20 project funded by IFC with grants from USAID and DFID, and through the BiDx10 project funded by the Dutch Postcode Lottery. BiD Network spun off bidX in January 2014 to ensure further investment in the platform. BiD Network will continue to use the platform and will focus on delivering the best matchmaking results for its projects using the platform.

bidX bv

BidX bv (bidX) is a web services company. It operates the community www.bidnetwork.org and develops the new www.bidx.net white label multi-community platform. BidX is a “Software as a Service” (SaaS) company, since it offers its services based on subscriptions to clients via the internet. BidX offers its web-services to entrepreneurs, to intermediaries that serve entrepreneurs, to mentors and to financiers of SMEs. During 2013 bidX has worked closely with her shareholders, BiD Network and Sampoerna Mekar PTE Ltd. to serve joint clients.

The mission of bidX is to facilitate the start, growth and finance of SMEs in emerging markets via internet services. BidX aims to be the largest pipeline of emerging market SMEs seeking finance, making a significant impact in emerging markets.

The 2010 business plan described three objectives for the start-up phase of bidX:

 to be the most effective platform for emerging market entrepreneurs and investors;

 to be more effective in financing SMEs than normal financial institutions;

 to reach a break-even point within four years. This is in 2016, earlier may be possible.

The most significant results in 2013 were:

 The successful launch of bidX’s new competition system for the bank Banorte and New Ventures in Mexico in May of 2013.

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Annual report BiD Network Foundation 2013 - 20  The launch of the first bidX group (portal) for our first client, the Clean

Cookstoves Alliance.

 The launch of the 5th_{Women in Business Challenge, operated by BiD}

Network with support of ING.

 While working on the development of www.bidx.net , the servicing of entrepreneurs, investors and mentors on www.bidnetwork.org continued. Web development activities in 2013

www.bidnetwork.org saw 8,900 members applying and 2,700 new business proposals being submitted. Despite the activity on the site, in terms of web development the website was maintained only by repairing minor issues. All web development efforts went into the development of www.bidx.net and the

functionality of online white label groups. These groups are essentially

Wordpress websites which have bidX community functionality built into it. All the Wordpress portals (“groups”) are connected by a common database. More

information about the groups can be found here: www.bidx.net/groups.

SECTOR CHALLENGES

Women in Business Challenge

The 4th edition of the competition was again supported by ING and built on the successes of the three previous competitions, attracting close to 300

participants. Of these participants the 50 most promising businesses were

chosen and matched to professionals - mainly from the ING coaching program -, and almost 100 business plans were submitted. Our expert jury selected five finalists: Lauren Thomas with Mozambikes from Mozambique; Dr. Sanjeevani with Mobile Dental Clinic from India; Jazmin Chi for LevGrow from Mexico; Dulce Martinez for Fabrica Social from Mexico and Affiong Williams for Healthy Snacks from Nigeria, who were invited to The Netherlands to participate in a Women in Business week in September 2013, where they benefited from training sessions, Business-to-Business (B2B) and investor meetings and financial consultancy from EY experts. The final event took place at the headquarters of ING. The Women in Business Challenge 2012-2013 was won by Affiong Williams for her business REEL Fruits. Her market based approach, innovative thinking and dedicated enthusiasm convinced the jury to grant her EUR 5,000 prize money raised by Happietaria.

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Read more: http://www.bidnetwork.org/en/news/5-finalists-women-business-challenge-2013

Ondernemen Zonder Grenzen

The 4th edition of Ondernemen Zonder Grenzen, or Business without Borders, a business plan competition for Dutch entrepreneurs with ambitions in emerging markets, was launched in June 2013, together with partners NCDO, EY and De Investeerdersclub. The launch event attracted close to 130 participants who had the opportunity to learn more about doing business in developing countries, and to network with investors and

potential business partners. The entrepreneurs had the

opportunity to benefit from coaching services – 24 were matched with EY professionals - as well as a Summer School. Of the 113 participants, 43

submitted full business plans. Accordingly, 13 finalists were

selected. The final event was held in De Rode Hoed in Amsterdam. The winners were African Clean Energy, Rural Spark, ENEWA, Africa Sustainable Aquaculture and Jiro-Ve. Two additional special prizes were awarded: The EY coaching prize was won by Jiro-Ve and the public prize by Martono & Company.

Read more: http://www.bidnetwork.org/en/news/ondernemen-zonder-grenzen-businessplan-competition-finals

ICT Challenge

Entrepreneurs from Burundi, Kosovo, Liberia, Palestine and Rwanda, the

countries supported by the United Entrepreneurship Coalition, could participate in the ICT Challenge. This competition was organized by BiD Network, in

collaboration with EY as coaching partner, TNO as event partner and investment partners eVentures Africa Fund, SEAF and the Palestinian Investment fund. Five finalists were selected: Henri Nyakarundi from Rwanda for African Renewable Energy Distributor; Innocent Munyaneza from Rwanda for Hoziyana Group; Fabrice Mutekano from Burundi for E-Burundi.com; Salah Ahmed from Gaza strip for Avatar and Amos Sando from Liberia for Amoscom. The finalists were invited to an ICT business week in The Netherlands or to the Growing SMEs East Africa in Rwanda, where investor meetings, training sessions and an event took place. Read more: http://www.bidnetwork.org/en/news/5-finalists-ict-challenge-2013

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Student challenge

The BiD Student Challenge 2013 was a fourth time collaboration between Aureus (VU University), BiD Network Rabobank and Solving Efeso. Seventy students from different business related studies, coming from universities around the Netherlands, reviewed 20 business plans of BiD Network entrepreneurs.

Together with their assigned coaches the groups worked on providing feedback on the plans and suggestions on how to make improvements for the

entrepreneurs. BiD Network organized a master class to train the students on basic structures in business plans, on what investors want and on pitching. To put the master class into practice the students were asked to prepare a YouTube pitch video presenting their improved business plan to the jury and potential investors.

Generación Impacto

Banorte and New Ventures México partnered in 2013 with bidX and BiD Network to organize Generación Impacto - a business plan competition for impact

enterprises focusing on training and capacity building. bidX supplied the

competition software through its partner Skipsolabs. The project was a success, attracting over 700 participants. The online platform catered well for the needs of the initiative: http://www.generacionimpacto.com.

Clean Cookstoves Investment Community

In September 2013, with the support of bidX and BiD Network, the Global Alliance for Clean Cookstoves started an online platform for their investment community. For this they used the bidx group functionality and the experience has helped us to test and improve the tools. It was the first group bidX ever launched: https://cleancookstoves.bidx.net/. This project also allowed the integration with the Skipsolabs competition software that the Global Alliance for Clean Cookstoves used to manage two of their business plan competitions: http://investment.cleancookstoves.org/en/.

COACHING PROGRAM

BiD Network works together with 1,795 Dutch and international coaches. Coaches are professionals who have knowledge about business development, financial planning, or marketing and sales and who have a personal or

professional interest in SME development in emerging markets. Coaches

voluntarily support entrepreneurs in writing their business plans; on average 20 hours during a period of 3 months per entrepreneurs. One BiD Network staff member is dedicated to match coaches and entrepreneurs and to support coaches in their job. BiD Network offers various trainings to coaches and organizes events where they can meet each other. Coaches and experts are registered on www.bidnetwork.org. The volunteers are not rewarded financially for their services. In 2013, 206 coaches supported entrepreneurs in their

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students and coaches, actively supported entrepreneurs at our events to get ready for their meetings with investors and other businesses.

This year, EY and ING were our main coaching partners for Ondernemen Zonder Grenzen (EY), the ICT Challenge (EY) and Women in Business (ING).

INVESTOR MATCHMAKING SERVICES

Investor Matchmaking services

In 2013, BiD Network worked out a strategy to further strengthen and

accelerate its matchmaking services. This plan will be implemented in 2014. A few staff members were trained in financial analysis and modelling, and at the end of 2014 it was decided to hire an extra matchmaker. Investor matchmaking services were offered to entrepreneurs with finance ready plans, and our

matchmakers were involved in a number of dedicated matchmaking projects. Clean Cookstoves Investment Community

The goal of the Investment Community project of the Global Alliance for Clean Cookstoves was to get 12 entrepreneurs pitch ready for deal rooms in

September and October (in New York and Nairobi). The activities as part of this project were to conduct a business plan gap assessment, a financial plan

assessment, the assessment and creation of a factsheet, a pitch deck, and a financial request.

The project has resulted in 12 pitch ready entrepreneurs by early September, 4 entrepreneurs pitching their business proposition in New York City in September 2013 and 4 entrepreneurs meeting with investors in Rwanda in November 2013 (the Global Alliance for Clean Cookstoves replaced the Nairobi event was with the Growing SMEs East Africa event in Rwanda after the terror attack in Nairobi). Of the entrepreneurs we worked with in Rwanda, two have signed NDA's with investors, and one has continued working with BiD Network in looking for finance.

Enhancing Food Security in the Horn of Africa through diaspora Investment in Agriculture

In March 2013, BiD Network has signed an agreement with the International Fund for Agricultural Development (IFAD) to implement a project called

“Enhancing Food Security in the Horn of Africa through Diaspora Investment in Agriculture Programme” (Project number I-R-1442-BIDNF). The main objective of the project is to facilitate finance for businesses in the food and agricultural sector in South-Central Somalia, Somaliland and Puntland. The finance will primarily come from the Somali diaspora, but also from other investors

interested in business opportunities from these regions. The project should leave behind a replicable and sustainable structure and intermediaries that can

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In 2013, BiD Network, with support of Collert Consulting based in the

Netherlands and in Somaliland, conducted a quantitative survey among 400 Somali diaspora to investigate whether diaspora investors would be willing to invest in Somali businesses, a question that 88% of the respondents answered positively. In addition, BiD Network signed a Memorandum of Understanding with the Dahabshil Bank to explore and design a financing mechanism for Somali enterprises. The design and testing will start in 2014. In 2014, also a call for proposals will be launched for start-ups and established businesses in South-Central Somalia, Somaliland and Puntland and investors will be invited to sign up for our matchmaking services.

Growing SMEs: Connect. Exchange. Invest.

Growing SMEs is an umbrella matchmaking concept under which different unique events geared towards access to finance find a place. After several international editions organized in the Netherlands, from 2011 onwards also regional editions of the Growing SMEs concept were organized, for instance in Colombia, Rwanda and Mexico.

Growing SMEs East Africa (Kigali, Rwanda)

Over 400 people attended the second edition of the Growing SMEs East Africa conference, among which 44 financiers. Of the participants 60% was Rwandan and 40% from abroad; a total of 27 nationalities from 13 countries were

attending the conference.

During the conference, the first “Get in the Ring” battle took place at which 9 Rwandan entrepreneurs pitched in front of 7 financiers (BRD, BPR, FinaBank,

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Business Partners, Grofin, BDF and De Investeerders Club). The investor

marketplace was opened by the Minister of Commerce Dr. Francois Kanimba. At the marketplace, 34 entrepreneurs from East Africa presented their businesses to interested investors. This resulted into a total of 21 follow up meetings. International investor meetings were carried on (with investors that

pre-screened the entrepreneurs and expressed their interest in one to one follow up meetings), live at the conference, and also through Skype.

In addition to that, 78 speed dating sessions took place at which 14 staff

members of 6 Rwandan banks (Fina, BPR, Equity, KCB, BRD, I&M) met with 17 pre-selected Rwandan entrepreneurs. This added to a total of 78 dating sessions between banks and entrepreneurs. They exchanged info on their financial

products and requirements and the entrepreneurs got to pitch their businesses. JCI Rwanda organized a round table on policy issues related on entrepreneurship and business environment during the Growing SMEs conference. A survey has been carried out among different financial institutions in Rwanda about the products they offer in order to be able to give proper advice to entrepreneurs on what is available in terms of finance in Rwanda.

Growing SMEs was a featured event of the Global Entrepreneurship Week and embedded in a BiD Network business week for entrepreneurs from different countries who attended Ready4Finance training sessions, B2B and investor meetings. In the same week, NABC organized a Dutch trade mission to Rwanda, facilitating connections between Dutch and Rwandan businesses.

Growing SMEs Latin America (Mexico)

In 2013, BiD Network’s international partner Fundación E decided to dedicate the year to organizing the Growing SMEs Latin America event. The State of Veracruz hosted us and several other organizations enthusiastically supported the

initiative. Ten selected entrepreneurs from Argentina, Colombia, Ecuador, Peru and Mexico were highlighted at the event. Around 1,500 participants joined us and had the opportunity to attend interesting conference sessions, exchange propositions, receive advice and make investment connections.

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Annual report BiD Network Foundation 2013 - 27 UNITED ENTREPRENEURSHIP COALITION

2013 was the 3rd_{year in which SPARK and BiD Network collaborated in the}

United Entrepreneurship Coalition, a 5 year program funded by the Dutch Ministry of Foreign Affairs supporting entrepreneurs and business support centers in Burundi (BBIN), Kosovo (BSCK and BC Zvecan), Liberia (BSC Monrovia), Palestine (Birzeit University Najjad Zeeni Center of Excellence, Business and Technology Incubator at the Islamic University of Gaza and Business Women Forum Palestine) and Rwanda (JCI Rwanda).

In 2013 new trainers of international partners were trained in the Ready4Finance curriculum, or existing trainers were trained in the more advanced modules. Due to travel restrictions the training and certification of our partner in Gaza took place through Skype.

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BiD Network also continued to support partners in the area of investor

matchmaking and the establishment of business angel networks. In particular Birzeit University, BSC Kosovo, BSC Monrovia, BTI and JCI Rwanda have gained more experience in preparing entrepreneurs for finance and matching them with investors. In Liberia, an investor trip was organized, which resulted in a

partnership agreement between BSC Monrovia and two funds to utilize BSC Monrovia’s network for deal flow. In Palestine, Birzeit University established a partnership with the Arabreneur investment fund and investors network. In Kosovo, an investor matchmaker was hired by BSCK and BiD Network. In addition, JCI Rwanda and the Palestinian partners were closely involved in the organization of events primarily aimed at matchmaking.

National and regional business plan competitions were organized in all countries. BiD Network and partners organized an ICT Challenge for the five countries and international partners were involved in the worldwide Women in Business

Challenge. These competitions were supplemented with training and coaching for entrepreneurs.

In 2013 we have seen a significant increase in the online results in these

countries as compared to earlier years of the program. A limited number of plans however reached the ready for finance level, where entrepreneurs can access our investor matchmaking services. Two matches were made in Rwanda and two matches in Kosovo, for an average investment size of USD 102,000.

At the end of 2013 online groups were developed for the international United Entrepreneurship Coalition partners of BiD Network.

Highlights in 2013 were the MSME Conference and Investor Trip to Liberia, the Sharaka Pitching Event in Jordan and the second edition of the Growing SMEs East Africa conference that took place in Rwanda.

INTERNATIONAL PARTNERS

In 2013 BiD Network collaborated with international partners in several countries that launched local competitions, organized Ready4Finance and other training sessions and events for entrepreneurs and investors or that were involved in investor matchmaking services. International partners from Argentina, Ecuador and Colombia received no funding for activities from BiD Network anymore, but entrepreneurs from these counties participated in the Growing SMEs event in Latin America.

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Burundi (United Entrepreneurship Coalition)

2013 proved a good year for BBIN and Burundi with 3 investor marketplaces organized in Bujumbura and 22 Burundian entrepreneurs attending the Growing SMEs East Africa conference in Kigali. For the first time ever in Burundi, BBIN managed 2 online business plan competitions. The international ICT challenge attracted 49 online applications from Burundi and the SHIKA competition saw 202 entrepreneurs applying.

BiD network trained 4 new

Ready4Finance trainers in the first half of the year, moreover BBIN staff were trained on the use of the online platform and management of competitions, which resulted in a gigantic increase in the number of website visits, hits, online members and online business

applications. These positive developments were also a fruit of BBIN’s marketing strategy that raised awareness of their programs and services.

Liberia (United Entrepreneurship Coalition)

BSC Monrovia multiplied its efforts in 2013, they reached out to entrepreneurs and investors like never before. This was done through a number of different activities and new programs.

BSC Monrovia provided Ready4Finance training to hundreds of entrepreneurs through the MSME Conference and within the framework of 4 business plan competitions. BiD Network certified 4 trainers in Ready4Finance modules. BSC Monrovia organized a number of workshops and round tables to promote entrepreneurship, and laid out the milestone for rural entrepreneurship

development by launching the first ever business plan competitions in Harper and Gbarnga.

Additionally, BSC Monrovia reinforced their efforts in matchmaking by organizing an investor trip to Liberia which enables international financiers to identify

potential businesses for investment. It is currently facilitating negotiations

between investors and entrepreneurs. During the Global Entrepreneurship Week, 4 Liberian entrepreneurs participated in the Growing SMEs East Africa

conference.

BSC Monrovia has become a landmark for entrepreneurship in Liberia, in 2013 it partnered with numerous organizations, banks and government bodies to

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Rwanda (United Entrepreneurship Coalition)

In September 2013, 37 young entrepreneurs were trained in business planning using the Ready4Finance training modules. The certification of participants after business planning completion was on September 15, 2013. 17 out of the 37 young entrepreneurs requested for

further support and an advanced training was organized on October 18, 2013. In November 2013, during the Global Entrepreneurship Week, JCI Rwanda organized the second East African edition of the Growing SMEs conference and BiD Network week, with a “Get in the “Ring” pitching battle and speed dating with banks.

Kosovo (United Entrepreneurship Coalition)

BiD Network’s local partners Business Support Centre Kosovo (BSCK) and Business Centre (BC) Zvecan organized the Kosovo Spring and the Kosovo Fall Challenge. 270 applications and 64 full business plans were submitted. The partners trained and coached the participating entrepreneurs. Networking sessions as well as extensive promotions efforts via newspapers, social media and flyers made entrepreneurship a big topic in Kosovo. BC Zvecan has found a matchmaking partner in Mercy Corps through which two entrepreneurs received USD 66,360 in 2013.

An investor matchmaking project was launched in January 2013 and has started in September due to a lengthy process of hiring an investor matchmaker. A list of potential investors has been accumulated to initiate an investor network for Kosovo.

A new Business-to-Business (B2B) service was piloted by BC Zvecan for North Kosovar companies being linked to Serbian companies to exchange best practices and to explore options to establish business relations. BSCK has provided winners the option to get linked to businesses in The Netherlands, a very attractive offer for Kosovar companies to realize business growth.

Palestine (United Entrepreneurship Coalition)

In Palestine BiD Network worked with the Business Women Forum Palestine (BWF), the Birzeit University Center of Excellence and the Business and Technology Incubator of the Islamic University of Gaza (BTI).

BWF conducted two business plan competitions for women entrepreneurs. In May, BWF's competition was selected by the European Training Foundation as one of the world's best practices to encourage entrepreneurship and build the

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capacities of female entrepreneurs.

Birzeit University conducted one business plan competition. BiD Network further supported the center in exploring the opportunities to set up a local investor network. This resulted in an agreement between Birzeit University and Mena Apps to launch a $1 M venture capital investment fund and a related Business Angel Network. 8 entrepreneurs from the university network were trained to pitch their plan to the fund management. They will be supported to become finance ready in 2014.

In the second half of the year, 5 staff members of the Business and Technology Incubator at the Islamic University in Gaza started the process to become certified trainers of advanced Ready4Finance courses. Due to travel limitations, the training was conducted via Skype and will be concluded in the beginning of 2014.

To introduce Palestinian entrepreneurs to investors, BiD Network, together with her Palestinian partners and the Business Development Center in Jordan,

organized a pitching event in Amman during the Global Entrepreneurship Week in November. Each partner selected and supported 2 entrepreneurs to pitch at this event. Entrepreneurs from BWF and BZU participated in training and networking sessions around the event.

Due to the relatively limited applicability of BiD Network services in the local context, BiD Network has decided to discontinue its advisory services and financial support to partners in the Palestinian Territories from 2014 onwards. BiD Network will offer the partners their own group on bidX and will continue to offer matchmaking services to viable businesses. Partners will also stay involved in the promotion of the 5th edition of the Women in Business Challenge.

Tanzania

Our partner SEED has participated in preparing entrepreneurs for the Growing SMEs East Africa conference, worked on establishing a business angel network for Tanzania and has established a local coaching network counting 18 verified coaches to assess business plans out of 124 applicants. SEED has been a strong partner for the Women in Business Challenge and has conducted BiD Network’s Ready4Finance training for entrepreneurs.

Uganda

In Uganda BiD Network’s partner IRIS continued to offer consultancy and training services to its network of entrepreneurs. Two radio talk shows were organized at which business opportunities and risks were discussed. The BiD breakfast grew into a signature event with attendance numbers growing to between 15 and 30. One of the breakfasts was attended by a business angel from The Netherlands. IRIS has been included in the mentoring program of

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Enterprise Uganda/ Youth Business International. Specific training sessions on tax were organized in collaboration with the Uganda Revenue Authority.

Peru

Our partner Instituto Invertir has conducted a Peru wide roll out of the

Ready4Finance training program called Ignite. In this program, entrepreneurs are trained and different revenue models are tested, aiming to make this a sustainable SME service for Invertir. The main objectives of the program are to generate entrepreneurial capabilities and encourage entrepreneurship in Peru; to generate business capabilities in early-stage businesses; to connect SMEs with investors, clients or potential relevant partners to their business development; and to generate an SME-oriented training model that can be replicated.

During the first half of the project a total of 268 entrepreneurs and SME owners have been trained during 63 training hours in Lima, Piura, Chiclayo and Trujillo. So far Invertir charged participants an average of EUR 24.76 for 3 hours of training. The training sessions have resulted in the start of 2 businesses and 14 strategic alliances.

Philippines

Our partner PBSP mainly focused on investor matchmaking services for previous BiD Challenge Philippines participants. This has resulted in new investment partnerships and in 3 investor matches, whereas a few more are expected in 2014. In addition PBSP spend time on extensive monitoring of all businesses supported. No competition has been organized in 2013, but preparations have taken place to launch a Water Challenge in 2014.

Jordan

In the beginning of the year, the Business Development Center (BDC) Jordan actively promoted the Women in Business Challenge.

Building upon the earlier established contact with BiD Network's partners in Palestine, BDC took on the challenge to organize a pitching event for Palestinian and Jordanian entrepreneurs in Amman. BiD Network and BDC intensively

worked together in the build-up for this event. In order to select entrepreneurs, BDC successfully ran a business plan competition, resulting in an increase of business applications from Jordan. BiD Network advisors conducted a

Ready4Finance Pitching and Types of Investment training to prepare the selected entrepreneurs.

Mexico

In 2013, BiD Network’s Mexican partner Fundación E dedicated the year to organizing the Growing SMEs Latin America conference in Veracruz.

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Annual report BiD Network Foundation 2013 - 33 GOVERNANCE AND ORGANIZATION

In February 2013 a restructuring of the organization took place that resulted in the integration of bidX and BiD Network processes for sales and fundraising, online and offline service development, project implementation and finance and operations. This led to a more effective steering of the online services

development and better use of strategic funds.

When it became clear that income generation on online service development was not likely to be generated before 2014, a second necessary restructuring,

including significant cost management measures, took place in June 2013. As a result several staff and free-lance staff members were laid off, in particular in the field of service development. Staff capacity for the delivery of contracted projects was maintained in line with projects’ needs. At the end of the year it was also decided to continue with only one director.

Transparency and efficiency

BiD Network receives funds from donors and other parties. In these relationships trust plays an important role. We operate in a professional manner and report transparently about when and where we spend the funds granted to us. BiD Network strives to work as efficient as possible while executing all tasks and activities.

Internal monitoring

All project managers monitor their projects periodically. In these evaluations they closely look at real versus planned costs. If real costs are higher than planned, project managers will aim to reduce other project costs. Periodically, project managers report to the Board of Directors about the status and progress of their projects. Each month, management reports are shared and discussed within the Board of Directors and with the BiD Network staff. On a quarterly basis, the Board of Directors reports to the Supervisory Board about programs and results. The Supervisory Board oversees and is accountable for the overall organizational objectives and results and monitors the efficiency of operations. Project partners

Projects are being executed by internal specialists and/or project partners. In the development phase of a project we look closely at how to achieve the best results possible and who can execute which activities. BiD Network uses project partners for the execution of several, mainly international projects. When

choosing a project partner, BiD Network first evaluates the capacity of the partner. Rights and obligations are written down in a partnership agreement between BiD Network and the partner. In this agreement, a reference to the sanction, anti-corruption and anti-fraud policies of BiD Network is included.

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Sanction policy

BiD Network’s partnerships are based on collaboration and equality. All

agreements have to be approved by both parties and collaboration entails rights and obligations. The sanction policy of BiD Network contains procedures and actions to be undertaken when project partners do not honor the signed agreement. Sanctions can be taken when:

 There is considerable doubt about fraud or corruption with or by the project partner;

 The partner organization has not fulfilled or not met one or more of the conditions mentioned in the agreement, such as timely reporting on program and financial results, quality of reports, etc.

 The results lack behind due to underperformance by the project partner.

In 2013 BiD Network has not inflicted any sanctions to one of the project partners.

Anti-fraud and anti-corruption policy

BiD Network keeps high standards with regards to our accountability. To meet these high standards it is important to have clear guidelines for all employees and volunteers on how to act when fraud is being detected or considerable doubt exists about fraud and/or corruption. BiD Network maintains a ‘zero tolerance’ policy when it comes to fraud and corruption. Employees and volunteers must act honestly and with integrity. The anti-fraud and anti-corruption policy includes responsibilities for all employees on how to act when fraud or corruption is

detected.

In 2013 there were no incidents reported about fraud or corruption. HR policy and operations

At the beginning of 2013 a light 360 degrees feedback process for evaluation and learning was introduced and appreciated by Board of Directors and staff. Staff development was planned in accordance with the organizational

development. Many staff members had ambitions and activities scheduled, and together with the organization they invested in sales, investor matchmaking, strategy development and HR legal administration. Development was largely done on the job with support from external experts. Two staff members enjoyed external training at the Rotterdam School of Management and ISBW.

The staff policies of BiD Network were reviewed and integrated with bidX’ staff policy.

In the course of 2013 there has been a decrease of 2 FTEs, from 16.5 FTE to 14.5 FTE. At the end of 2013, BiD Network employed 11 people, of which 9 women and 2 men. Most staff members employed part-time.

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2013 2012

Total employees end of year 11 20

Average number of FTE staff 14.5 16.5

In 2013, two staff members were posted in Rwanda. The other staff members were based at BiD Network’s headquarters in Amsterdam, The Netherlands. They did however frequently travel to the different countries in which BiD Network operates.

BiD Network works together with 1,795 voluntary coaches. Absence through illness

The absence due to illness was 6.99% higher than in 2012 (2.23%). This was caused by two pregnancies and a long term illness. This has had a considerable impact on the organization. The employee concerned has started a reintegration program. The absence due to illness excluding pregnancies was 3.76%. This was 1.82% higher than the previous year (1.94%).

Organogram 2013

ACCOUNTABILITY

BiD Network’s governance structure consists of a Board of Directors responsible for the day-to-day operations, reporting to and supervised by a Supervisory

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Board. The Supervisory Board is responsible for overseeing the operations, budget and plans of the foundation.

Board of Directors

In 2013, the Board of Directors of BiD Network consisted of one director

responsible for business and service development and one director responsible for delivery and operations. Due to long term illness of one the directors an interim director was appointed in January 2013. Per January 2014, BiD Network will continue with one director.

Name Function Start date End date

Thierry Sanders Director business and service development

01-01-2008 21-01-2014 Cily Keizer Director delivery and operations 01-06-2010 31-12-2013 Hendrik van Gent Interim director delivery and

operations

09-01-2013 11-12-2013

Hendrik van Gent Director 11-12-2013

Thierry Sanders

Thierry Sanders founded BiD Network in 2004, while being a program manager at NCDO, a Dutch expertise and advisory center for citizenship and international cooperation. He also founded Unseenproducts bv, the Dutch Design in

Development Foundation, the www.mdgscan.com and published the first guide to Venture Capital for SMEs in developing countries. Prior to that he was general manager of EcoSecurities plc., the world’s largest carbon trading company. He served as a partner in several CSR consultancy firms. Thierry Sanders was business developer of BSO-Origin (Atos-Origin) in Asia and in The Netherlands, and implemented an ERP system at Fair Trade Original and Oxfam-Novib. He started his career as a research officer at the Institute for Development Studies, University of Sussex, UK.

In 2013, Thierry Sanders was also director of bidX, of which BiD Network was major shareholder, as well as advisor to the Board of the Putera Sampoerna Foundation.

Cily Keizer

Cily Keizer has been director of BiD Network since 1 June 2010. She brought BiD Network a wide range of international experience in Asia (Nepal, Bhutan, Laos, Cambodia), Africa (Ghana) and Latin America (Peru, Ecuador), as well as extensive management experience in running multi-sector development programs that have strong private sector development and capacity building focus.

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Before joining BiD Network, Cily was director at Wemos, a Dutch Development Foundation that works in the health sector. Prior to that, she worked for SNV Netherlands Development Organizations for over 17 years, holding various country director, managerial and advisory positions. She was responsible for programs in the field of SME development, sustainable pro-poor tourism, micro finance, renewable energy such as biogas, and value chain development of agricultural and forest products.

Hendrik van Gent

Hendrik joined BiD Network in January 2013 as ad interim director Delivery and Operations. Before starting at BiD Network, Hendrik worked with War Child Holland from April 8, 2004 till May 1, 2013. During this time Hendrik held different positions such as Program Manager, Marketing Manager ad interim, Innovation Manager and was ad interim CEO between February and June 2012. In 2013 Hendrik was also advisor for the social and sustainable investor

community BizzyBees.

Remuneration of directors

The salaries of the directors of BiD Network are based on the “Adviesregeling Beloningen Directeuren van Goede doelen”, as drafted by the branch

organization VFI (Vereniging Fondsenwervende Instellingen). Based on these guidelines, BiD Network has placed the function of director in a scale with a maximum salary of EUR 98,257. The gross salary of Thierry Sanders in 2013 was EUR 48,908 (based on a part time contract of 50%, including holiday allowances), falling within these boundaries. The gross salary of Cily Keizer in 2013 was EUR 92,200 (based on a full time contract, including holiday

allowances), falling within these boundaries. The gross salary of Hendrik van Gent in 2013 was EUR 36,169 (based on a part time contract of 40%, including holiday allowances), falling within these boundaries. The employment terms for the function of director also comply with the framework as stated by the Dutch Code for good Governance.

Supervisory Board

The by-laws of BiD Network clearly describe the separation of duties, tasks and responsibilities between management and supervision.

BiD Network greatly values a transparent and dedicated cooperation between the Board of Directors and the Supervisory Board. The Board of Directors prepares the Supervisory Board meetings. At the meetings it informs the

members of the Supervisory Board about all important developments within the organization and updates the Supervisory Board on the latest state of affairs with regards to the implementation of the year plan, enabling the Supervisory Board to supervise activities and results in the light of the policy laid out.

Information is provided via quarterly reports. In the fall of every year the Board of Directors and Supervisory Board together work out the structure for the next

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year plan. Before the end of the year the plan is finalized. Every year, the Supervisory Board verifies and approves the annual financial report. Questions the Supervisory Board may have about the implementation of the annual plan are discussed with the Board of Directors. The Supervisory Board may also suggest policy changes. Annually the Supervisory Board evaluates the performance of the members of the Board of Directors.

The most important tasks of the Supervisory Board are the appointment of the members of the Board of Directors, supervising their performance and the overall performance of BiD Network. The Supervisory Board actively contributes to the development of the vision and the long term strategy of the organization. It monitors to what extent the organization follows its mission and achieves the planned results, and watches the efficiency and effectiveness of how the

organization is managed.

The Supervisory Board is structured in such a way that continuity of membership is assured, while simultaneously it allows for ongoing renewal. Supervisory

Board members are appointed for three years and can be reappointed one additional term. To safeguard its professional and ethical standards, the Supervisory Board has drafted a Supervisory Board profile, specifying

composition, competences required, professional backgrounds and expertise needed. This profile serves to benchmark to evaluate qualifications and performances of individual Supervisory Board members on a regular basis. In 2013, the Supervisory Board held 8 meetings. In addition to monitoring the progress of BiD Network’s operations against its year plan, other important topics were:

 Verification and approval of annual accounts and annual report 2012;

 Evaluation of staff capacity and restructuring of BiD Network;

 Sale of the bidX shares.

The Supervisory Board members have not received any remuneration apart from a maximum reimbursement of expenses of EUR 200 per member per

Supervisory Board meeting.

In 2013 the Supervisory Board consisted of:

Name Portfolio In Board

since

End of 2nd term

Maarten van Dijk - Chairman until 18 September 2013

Remuneration Committee

23 April 2008 22 April 2014

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Annual report BiD Network Foundation 2013 - 39 Chairman ad interim per 18 September 2014 Committee MFSII

Alef Arendsen bidX supervisory board

10 June 2010 9 June 2016

Herman Snelder 01 January

2013

31 December 2018

Henk van Stokkom Audit Committee MFSII

01 January 2013

31 December 2018

Ruud Nijs Audit Committee

bidX supervisory board 01 January 2013 31 December 2018

Maarten van Dijk

Maarten van Dijk is the founding partner of Victoria Lofts/Sequoia Residences – a luxury real estate developer, specialized in industrial monuments. He also owns Sarah Holding, a holding company for activities relating to consultancy, training programs and investments, and is a partner in restaurant Brasserie NL, with top-chef Ruben van Dieten.

He is also member of the Board of trustees for the KFI Kilimanjaro Film Institute, and member of the Advisory Committee of Extra Talent bv.

Paul van Aalst

Paul van Aalst is managing director of SOVEC, an investment fund set up by Dutch entrepreneurs to invest in SMEs in Africa in partnership with local investment partners. Until February 2012 he was director of a clean energy investment company providing business development services and investment capital to small and growing clean energy enterprises in Africa, Asia and Central America. He was also a member of the supervisory board of IKV Pax Christi until the end of April 2012.

Alef Arendsen

Alef Arendsen is the founder of The New Motion, a company that aims to eradicate fossil-fuel usage for personal transport through the promotion and provision of charging services for electric vehicles. He founded a further two successful companies; JTeam bv and SpringSource. These were both sold in 2009.

Herman Snelder

Herman Snelder is the director and owner of MDF Training and Consultancy. MDF is a global training and consultancy agency, with over 25 years of

experience in international co-operation. Before founding MDF, Herman worked as project manager for COOPIBO (BE) in DR Congo and Rwanda.

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Herman is also member of the Think Tank on the Rhineland model for different ways of organizing enterprises with a focus on trust, relations and

craftsmanship. Businesses are considered part of and parcel society.

Henk van Stokkom

Henk van Stokkom is founder and owner of DoenDenkers since 1995. He acts for and on behalf of charitable trusts and high net worth individuals in the area of donations policy and responsible investing (management & implementation). In 2013 Henk van Stokkom was also member of the Supervisory Board of

Stichting Liliane Fonds, member of the Board of Advice of the Karuna Foundation and board member of the Sint Antonius Stichting.

Ruud Nijs

Ruud Nijs co-founded TheRockGroup in 2012. TheRockGroup uses a pragmatic (‘make it work’) approach to offer tailor-made solutions for mainstreaming

sustainability in corporations and organizations, commercializing young ventures (mainly by offering Corporate Finance solutions), and creating solutions for complex societal issues. He worked as Director of Corporate Social Responsibility and Executive Vice President of Financial Logistics at Rabobank, as Managing Director for Europe, the Middle East and Africa at Fair Isaac and HNC Software, and as Senior Executive Vice President at ABN AMRO. He is also Board member for the Society for International Development Dutch Chapter (SID) and is

member of several (regional) investment committees. Audit committee

As a committee within the Supervisory Board, the audit committee monitors the functioning of internal planning, control and risk process and BiD Network´s financial management, following the by-laws for the audit committee. Selection, Appointment and Remuneration Committee

As a committee within the Supervisory Board, the Selection, Appointment and Remuneration (SBRC) Committee is responsible for proposing the selection, appointment and remuneration criteria for the Board of Directors and

Supervisory Board and the monitoring of their performance of management and supervisory board, following the by-laws for the SBRC committee.

FORECAST 2014

In 2014, BiD Network will focus on delivering matchmaking results through our projects funded among others by the Dutch Ministry of Foreign Affairs, IFAD, the Dutch Postcode Lottery and IFC. Based on the efforts and results in 2013, a targeted matched amount of USD 4 million is set. Services will be more tailored towards meeting investors and the financing of smaller SMEs in the missing middle, for which it is more difficult to access finance.

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BiD Network will benefit from cost restructuring and the sale of its daughter bidX, allowing the organization to work more effectively and more efficiently and to become financially much healthier with a budgeted positive result of

EUR 383.700 (see budget). There are no special expenses foreseen in 2014 for VAT and repositioning of BiD Network.

New business has come from the International Fertilizer Development Centre (IFDC) and a number of proposals are being presented to donors and clients. The organization has a temporary negative equity position per 31 December 2013, due to the restructuring of BiD Network and the expected expenses of the Bidx10 project, of which income was accounted in 2011. The liquidity forecast for 2014 confirms that no liquidity problems are foreseen in 2014, despite the negative equity position at 31 December 31 2013. This is mainly because

contractual payments for various projects are received in advance. BiD Network will be able to meet all grant obligations.