Startup Funding Best Practice PLUS/21... · investments, assistance programs, consultancy services and financing facilities – ranging from entrepreneurial spirit, pre-seed phase
Post on 26-Jul-2020
1 Views
Preview:
Transcript
Startup Funding – Best Practice aws/Austria
Minsk | September 2017
aws - Who we are
Austria‘s federal promotional bank - over 60 years of know-how in
entrepreneurial, economic and innovation support.
Our mandate enables us to offer a broad range of company-related
investments, assistance programs, consultancy services and
financing facilities – ranging from entrepreneurial spirit, pre-seed
phase up to the expansion and internationalisation stages.
In 2016, aws supported approx. 4000 companies with a total
financing volume of EUR 815 Mio., thereof approx. 2400 start-ups
and young companies (~250 innovative and technology-oriented
start-ups) with a total financing volume of EUR 225 Mio.
2
Owners | Clients
Owners
Clients
3
One Mission
4
Consistent
promotion of
growth &
innovation
Start-ups
Introduction of new
products and
services
4 Leaps of growth (e.g.
internationalisation)
5
Start-ups
3
Technology
Transfer
2
Entrepreneurial
spirit
1
Growth and
Industry
Five entrepreneurial challenges
5
Life cycle of enterprises –
allocation of aws instruments
Pre-start-up Start-up Growth
phase
Maturity
phase
aws Coaching
aws Grants
aws Equity
aws Guarantees
aws Loans
6
Startup Funding –
Best Practice I
Equity Premium Program
7
aws Equity Premium
Start-up
Investor
Start-up
Qualification
+ grant of Equity
Premium
Investment
4
2
3
1 Application for
Start-up Qualification
Application for
Equity Premium
Facts & Figures
• 20% grant for investors, investing in
innovative and growth-oriented
startups located in Austria
• Max. grant EUR 500.000 per
investor and year
• Investors from all EU-member states
elegible (no VC/PE-funds)
• Two-stage application process
• Started 2017, approx. 500 grants
EUR 8m expected
aws Equity Premium
Advantages
Strong incentive – easy to communicate
Easy to adopt to specific needs
Long-term effect on startups & ecosystem
Challenges
Deadweight effect possible
State Aid restrictions
Budget requirements
aws Equity Premium
Differences AUT vs. GER – Model
AUT GER
Startup • Max. 7 Years after market entry
• All industries as long as
innovation and growth criteria
are met
• Max. 10 years after foundation
• Fixed list of industries
Investor • Natural & legal persons from EU-
countries, except VC/PE-funds
• Business Angels only, EEA-
countries
Equity • Equity & quasi-equity
• First and follow-on investments
• Min. EUR 5.000
• Max. 250.000 p.a./Investor
• Equity only
• No follow-on investments
• Min. EUR 10.000
• Max. 500.000 p.a./Investor
Process • Parallel application (Startup-
Qualification & premium)
• Fully digitised
• Consecutive application
• On paper
Startup Funding –
Best Practice II
Double Equity Guarantee Program
11
aws Double Equity Guarantees
Equity
Investment
Bank Loan
Loan Guarantee in the amount
of 80% of the equity investment
Facts & Figures
• Loan guarantee of up to
EUR 2m (i.e. 80% of max.
loan amount of EUR 2.5m
• No collateral required for
guaranteed portion of loan
• Term: up to 10 years
• Financing of all operational
expenses
• 50-60 projects p.a.,
guaranteed volume EUR 15-
20m p.a.
Startup
aws Double Equity Guarantees
Advantages
No deadweight effect
No restrictions on eligible expenses (esp. current assets)
High leverage on public funds (1:35)
Long-term effect on startups & ecosystem (esp. banks)
Challenges
Indirect incentive – communication via banks
Requires higher input for program management
aws Double Equity Guarantees
Framework Requirements
Banking sector active in SME-financing
Agreement with banks on general terms of the guarantees
State guarantee compliant to Basle II/III requirements
Strong network with financing partners (banks, business angels, VC-
funds)
Monika Bednarik-Belan
Leiterin
Finanzierungs-| Projektgarantien
T +43 1 501 75 – 333
E m.bednarik@awsg.at
Austria Wirtschaftsservice Gesellschaft mbH
Walcherstraße 11A | 1020 Wien | www.awsg.at
Austria Wirtschaftsservice Gesellschaft mbH
Walcherstraße 11A | 1020 Wien | www.awsg.at
Christian Stein
Head of Equity Programs T +43 1 501 75 – 260 E c.stein@aws.at
top related