Program VENCRO

1
Program VENCRO

• Ante Mamic
• Business Innovation Center of Croatia - BICRO

2
Contents

• Sources of Capital
• Risk Capital
• Business Innovation Center of Croatia BICRO
• BICRO-a Programs
• VENCRO Program
• Conclusion

3
Sources of Capital
for young innovative companies

• Public Offering
• Private Placements
• Joint Venture
• Risk Capital
• Strategic Alliance
• Merger

• Acquisitions
• Franchising
• Licensing
• Loans
• Grants
• Bonds

4
Risk Capital

• equity and quasi equity financing to companies
  during their early-growth stages
• includes
• business angels
• venture capital
• alternative stock markets specialized in SMEs
  including high growth companies

• Copernicus Capital - 30M
• Seaf Croatia - 8,2M
• Horizonte Venture Management - 20M
• Quaestus Private Equity Partneri - 35M
• HBOR - 8,22M

- informal investments
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Venture Capital
Risk Capital
Expansion / Development Capital
Venture Capital
Tech Transfer / Incubators
Business Angels / Pre-Seed
Seed-stage
Early-stage
Private Equity
Stock Exchange, Public Equity
Later-stage BUY-OUT
Mid-stage
6
VC investicija
Commercial bank
Loan

• EXIT
• IPO
• MA
• MBO

Venture Capital Fund
Company
7
Examples
What is BICRO doing?
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BICRO Ltd.
Vision

• BICRO is the key organization within the national
  innovation system whose basic role is development
  and implementation of government support programs
  aimed at strengthening technology development as
  the main generator of sustainable economic growth
• Successful and efficient support to technological
  development and commercial use of research
  outputs by creating financial, material and other
  conditions for existing and newly established
  companies in order to increase their
  competitiveness or facilitate introduction of new
  products or services to the market.

Mission
9
Programs
Demand for Venture Capital

• RAZUMthe program ensures initial funding of
  newly established knowledge-based companies and
  research and development of new products and
  services in existing companies
• TEHCROthe program supports development of
  technology infrastructure
• VENCROthe program supports establishment of
  venture capital funds
• IRCROthe program stimulates cooperation between
  the industry and various research institutions
• KONCROthe program ensures easier access to
  technological know-how and management skills

Demand for Venture Capital
Supply of Venture Capital
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Program VENCRO

• using BICRO Government of Croatia will invest 4,5
  M in one venture capital fund
• the fund will be managed by a private sector
  management company selected through a public call
  for proposals (NN 13/07)
• the goal is to raise at least 10,5 M from
  institutional investors achieving a minimum
  acceptable size of 15 M
• 30 of the fund is reserved for investments in
  the technology sector

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Conclusion

• At a time when developing countries are
  increasingly losing manufacturing jobs to low
  wage countries, and when low wage countries seek
  industries that depend on more than just cheap
  labor, creating a venture capital market has
  become the holy grail of economic development.
• Ronald J. Gilson (2002)

12
Thank you
Business Innovation Center of Croatia - BICRO
www.bicro.hr
razum_at_bicro.hr
tehcro_at_bicro.hr
vencro_at_bicro.hr
ircro_at_bicro.hr
koncro_at_bicro.hr