FIFTH ANNUAL WIPO FORUM ON INTELLECTUAL PROPERTY AND SME

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FIFTH ANNUAL WIPO FORUM ON INTELLECTUAL PROPERTY
AND SME Intellectual Capital Readiness Outreach
and Support Programs on Intellectual property
Financing INNOVATION ON SME FINANCING The
experience of the Portuguese SME and Innovation
Agency (IAPMEI) Jaime Andrez Chairman of the
Board of Directors of IAPMEI Geneva, 13-14
September 2007
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IAPMEI Portuguese Agency for SME

• Government Agency whose mission is to support
  economic policies oriented to micro, small and
  mid-sized companies
• Services provided to companies by IAPMEI are
  divided into the following major categories
• Innovation and business environment
• Grants for investment
• Technical Assistance and
• Access to finance for SMEs.

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Public Instruments for Risk Sharing
Credit Securitisation Guarantee Fund
Mutual Counter- Guarantee Fund
Venture Capital Syndication Fund
Provides co-investment and other risk-sharing
features to the venture capital and private
equity industry

• Provides guarantees to reduce the exposure
  of mutual guarantee societies

Provides guarantees to credit enhance the
cash-conversion of bank loans through
securitisation
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INOFINFinancial Innovation Framework
Main Objectives
To promote efficiency in banking
intermediation to stimulate the enlargement of
capital markets
To adjust existing instruments to the specific
profiles of SME needs along their life cycle
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INOFINRisk Sharing with Market Players
Bank Intermediation
Mutual Guarantee
Loan Securitisation
Banks
SAVINGS
SME
Venture Capital
Origination Platforms
Equity Markets
Equity Chain
Hands
-
- on
Hands
-
- off
Proximity
Immaterial
Capilarity
Scale
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The Rational Incomplete Nature of the Financial
Markets
Supply (Operators)
Demand (SME)
Segments of limited attractiveness for financial
operators
Insufficient coverage for certain segments
MIS-MATCH
Determined by
Determined by

• Environment
• Regulatory issues
• Regulation
• Taxation
• Contracting and Law
• Transaction Costs
• Scale of Operations
• Geographical Dispersion
• Appraisal / Evaluation
• Risk-Reward Patterns
• Asymmetric Information
• Risk Perception
• Risk Profile of operators
• Liquidity
• Nature of assets
• Secondary / Exit Markets

• Business Profile
• Stage position in life curve
• Level of specialization
• Critical size
• Available Resources
• Human Capital
• Financial Structure
• Entrepreneurial Culture
• Entrepreneurial spirit
• Market culture
• Management Skills
• Management Teams
• Organization
• Information Systems

MIS-MATCH
Financial Markets
- Financial Gap - Demand and Supply Constraints
Theres a role for State under certain
circumstances
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INOFIN - Programs along the business life cycle
Companies life cycle
time
FINICIA
FINTRANS
FINCRESCE
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FINICIA ProgrammeFinancing SME Early Stages
Facilitating access to finance for Entrepreneurs
and Small Companies at the initial phases of
their life cycle
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FINCRESCE ProgrammeFinancing SME Growth
Strategies
Optimizing company financing conditions necessary
to promote growth strategies and strengthen their
competitiveness
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FINTRANS ProgrammeFinancing Equity Transmission
and MA
Encouraging founders succession and/or
transfer of assets into new
value chains, thus inducing regeneration of
the Economy
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FINICIA PlatformsEco-systems for Start-Ups
Venture Capital Syndication Fund
VC Companies
Risk Sharing
Local Network
Business Angels
Corporate Ventures
Research Institutes
SME
Incubators
Business Chambers
Development Agencies
Universities
Procurement Approach
Project Evaluation
Investment Forum
Business Follow Up
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FINICIA Figures
Fund Raising
10 million New venture capital fund 97
million Euros 75 million New credit lines
(for start ups) 12 million New mezzanine
regional funds
New Companies, Investment and Job Creation
111 new companies 10 of highly innovative
projects 17 million euros of total
investment 381 new jobs
Favourable Environment
Creation of 13 FINICIA Platforms near
universities, with 85 partners Creation of KIT
FINICIA with standard documents such as
shareholders agreements and companies bylaws
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INOFIN is a contribution to ending the waste of
ideas and entrepreneurs in Portugal.
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INVITATION TO WPSMEE DELEGATESFORTHCOMING
EVENTS IN PORTUGAL
OCTOBER 8th 9th 2007 EUROPEAN UNION
PRESIDENCY FORUM ON FINANCING INNOVATION BEST
PRACTICES From Ideas to Market EUROPEAN
COMMISSION IAPMEI OCTOBER 10th 2007 MUTUAL
GUARANTEE INTERNATIONAL SUMMIT EUROPEAN
ASSOCIATION (AECM) SPGM IAPMEI DECEMBER 6th
2007 CONFERENCE ON SMEs EUROPEAN
COMMISSION IAPMEI DGE (Ministerial Dept.)
JANUARY 2008 (DATE TO BE DEFINED) CONFERENCE
ON INTERNACIONALIZATION OF SMEs OEDC-OCDE
IAPMEI AICEP (Investment Exports Agency)
YOU ARE WELLCOME and THANK YOU FOR YOUR ATTENTION!