- 1999 - venture capital and private equity in italy a.i.f.i. italian venture capital and private...

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- 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

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Page 1: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

- 1999 -Venture Capital and

Private Equity in Italy

A.I.F.I.Italian Venture Capital and Private Equity Association

Page 2: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

A.I.F.I. Members

A.I.F.I.

15

22 2428

30 30 31 3032 33 34

49

13

8

15

8

8

3

13

8

20

7

7

3

13

9

28

8

7

3

1

0

10

20

30

40

50

60

70

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 '09/2000

Banks and banking financial operators Italian closed-end funds International operatorsCorporate/Private investors Public operators Co-operative financial operatorsIncubators

5558

69

Page 3: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

Investment activity by number, companies and amount

198 175

516

234 209

601

269 227

944

390 309

1.780

0

500

1.000

1.500

2.000

1996 1997 1998 1999

Number Companies Amount (Euro mln)

A.I.F.I.

+88 %

Page 4: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

Average invested amount (Euro mln)

2,60 2,50

3,50

4,56

0

2

4

6

1996 1997 1998 1999

A.I.F.I.

Page 5: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Stage distribution of investments

153 147 124

356

31

11865

878

17

274

0

300

600

900

Seed/Start up Expansion Replacement Buy out V. & O. purchase ofquoted shares

Number Amount (Euro mln)

A.I.F.I.

Page 6: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Stage distribution by % of amount invested

39%

8%

32%

20%

8% 7%

17%

50%

4%

15%

0%

10%

20%

30%

40%

50%

60%

Seed/Start up Expansion Replacement Buy out V. & O. purchase ofquoted shares

Number Amount

A.I.F.I.

Page 7: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Venture Capital vs Private Equity

1.631179237

147

130153

0 350 700 1.050 1.400 1.750

Private Equity

Venture Capital

Amount (Euro mln) Companies Investments

A.I.F.I.

Page 8: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - % of amount invested by number of employees

36%

14%

24%

10%13%

10%14%

22%

8%

28%

5%

16%

0%

10%

20%

30%

40%

50%

0 - 19 20 - 99 100 - 199 200 - 499 500 - 999 > 1.000

Number Amount

A.I.F.I.

Page 9: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1998 - 1999: Sectoral distribution of investments by number

010203040506070

Indu

str. P

dts

Man

ifactu

ring

Other

Serv

.

Consu

mer re

l.

Financ

. Ser

v.

Constr

uctio

ns

Chemica

ls

Ind.

Autom

ation

Agricu

lture

Energ

y

Trasp

orts

Other

Commun

icatio

n/Tele

com

Inter

net

Compu

ter re

lated

Electro

nics

Health

care

Biotec

h

1999 1998

A.I.F.I.

High Tech Low Tech

Page 10: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

% of amount and number of investments in the high tech sectors*

6%2%

9%7%

15%11%

30%18%

0% 4% 8% 12% 16% 20% 24% 28% 32%

1996

1997

1998

1999

Number Amount

A.I.F.I.

*High tech sectors: computer related, communications, other electronics related, medical/health related; biotechnology.

Page 11: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Sectoral distribution of amount invested in high tech

Biotech3%

Telecom: hardware4%

Internet14%

Communication: other9%

Health Care3%

Electronics11%

Computer related: software

11%

Computer related: other1%

Telecom: carriers44%

A.I.F.I.

Page 12: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Geographical distribution by % of numberand amount invested

90% 95%

9%4% 1% 0%

0%

20%

40%

60%

80%

100%

Italy Europe Other

Number Amount

A.I.F.I.

Page 13: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Italy: geographical distribution by % of amount and number of investments

53%

58%

29%

37%

18%

5%

0%

20%

40%

60%

80%

North Centre South+Islands

Number Amount

A.I.F.I.

Page 14: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Italy: regional distribution by number of investments

38

19 19 18

9 8 7 6 6 5 41 1

710

23

31

66

0

10

20

30

40

50

60

70

Lomba

rdia

Friuli V

.G.

Emilia R

.

Piemon

teLaz

io

Sarde

gna

Tosca

na

Veneto

Puglia

Mar

che

Sicilia

Liguria

Campa

nia

Calabr

ia

Abruz

zo

Moli

se

Basilic

ata N.A.

A.I.F.I.

Page 15: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

Syndication by % of number of investments

23%

41% 41%

77%

59% 59%

0%

20%

40%

60%

80%

100%

Syndication No syndication

1997 1998 1999

A.I.F.I.

Page 16: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

Number of investments by type of investors

93

40

15

60

50

23

19

42

93

62

55

107

0 11 22 33 44 55 66 77 88 99 110

Banks and banking financialoperators

Italian closed-end funds

International operators

Corporate/Private investors

Public operators

Co-operative financial operators

1998 1999

A.I.F.I.

Page 17: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

Amount invested by type of investors (Euro mln)

187

280

84

301

75

17

547

159

811

132

100

31

0 300 600 900

Banks and banking financialoperators

Italian closed-end funds

International operators

Corporate/Private investors

Public operators

Co-operative financial operators

1998 1999

A.I.F.I.

Page 18: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Italian Private Equity Industry Concentration

A.I.F.I.

97,0%

85,7%77,5%

65,5%

46,6%

94,7%100%

35,6%

55,9%

69,0%

77,4%

89,0%

20,0%

40,0%

60,0%

80,0%

100,0%

5 10 15 20 25 30 35 40 45 50

Number of Investors

Mar

ket

Quo

ta

Invested Amount Number of Investments

Page 19: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Stage distribution of investments by type of investors

A.I.F.I.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Seed/Start up

Expansion

Buy out

Replacement

Quoted shares

Banks and banking financial operators Italian closed-end fundsInternational operators Corporate/Private investorsPublic operators Co-operative financial operators

Page 20: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

Divestment activity by number, and amount (at cost)

117176

126195

129

335

170

578

0

200

400

600

1996 1997 1998 1999

Number Amount (Euro mln)

A.I.F.I.

+72,4%

Page 21: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Distribution of divestments by number and amount

78

214

13

165

20

59

6 10

53

130

0

50

100

150

200

250

Trade sale Sale to other VCst-Fin.Inst.

IPO-Sale post Ipo Write off Other

Number Amount (Euro mln)

A.I.F.I.

Page 22: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Distribution of divestments by % of number and amount

46%

37%

8%

29%

12% 10%

3% 2%

31%

22%

0%

20%

40%

60%

Trade sale Sale to other VCst-Fin.Inst.

IPO-Sale post IPO Write off Other

Number Amount

A.I.F.I.

Page 23: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

The EYVB Index (Ernst&Young Venture Backed Index)

A.I.F.I.

400,00

450,00

500,00

550,00

600,00

650,00

700,00

750,00

800,00

850,00

900,00

BISCI ItaIPO MIB30 MIBTEL MIDEX EYVB

EYVB

ItaIPO

MIB30BISCIMIBTEL

MIDEX

01-ott-99 22-mar-00

Page 24: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

Number of divestments by type of investors

57

10

17

26

13

10

18

18

42

23

6

59

0 10 20 30 40 50 60 70

Banks and banking financialoperators

Italian closed-end funds

International operators

Corporate/Private investors

Public operators

Co-operative financial operators

1998 1999

A.I.F.I.

Page 25: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Stage distribution of divestments by type of investors

A.I.F.I.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Trade sale

Sale to other VCst-Fin.Inst.

IPO-Sale post IPO

Write off

Other

Banks and banking financial operators Italian closed-end fundsInternational operators Corporate/Private investorsPublic operators Co-operative financial operators

Page 26: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

Portfolio by number and amount (at cost)

1.100

935819

711

3.618

2.4171.807

1.400

0 1.000 2.000 3.000 4.000

Number of Companies

Amount (Euro mln)

1999 1998 1997 1996

A.I.F.I.

Page 27: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

New funds raised (Euro mln)

735

1.069 1.051

2.207

0

500

1.000

1.500

2.000

2.500

1996 1997 1998 1999

A.I.F.I.

+110%

Page 28: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Sources of new funds by %

49%45%

6%

0%

20%

40%

60%

Parent Organisation Market Capital gain

A.I.F.I.

Page 29: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Sources of new funds raised on the market by %

25%

20%

14% 13% 12%10%

3% 4%

0%

10%

20%

30%

40%

Banks Funds ofFunds

Corporateinvestors

PrivateIndividuals

Pension unds InsuranceCompanies

Public Sector Other

A.I.F.I.

Page 30: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Fund raising targets

0%

10%

20%

30%

40%

50%

Early stage Expansion Buy Out Other

High Tech Low Tech

A.I.F.I.

21%

42%36%

1%

Page 31: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Geographical breakdown of total funds raised

Other2%

USA22%

Europe34%

Italy42%

A.I.F.I.

Page 32: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

1999 - Geographical breakdown of funds raised from the market

Other4%

USA31%

Europe37%

Italy28%

A.I.F.I.

Page 33: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

The industry performance:the sample

1990-1999 1989-1998 1986-1996

N° of operators in the sample 35 25 14

N° of operators actively investing in period 25 16 12

Total number of considered investments 202 172 100

Total cash out (Euro mln) 576 461 250

Average Investment size (Euro mln) 2,8 2,6 2,5

Total cash in (Euro mln) 1.607 1.140 622

A.I.F.I. AB CDKPMG Corporate Finance

Page 34: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

The Industry Performance:the Pooled IRR

A.I.F.I.

0

1

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

1990-1999: IRR=40,3%

1989-1998: IRR=33,4%

1986-1996: IRR=31,2%

AB CDKPMG Corporate Finance

Page 35: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

The Industry Performance:Pooled IRR 1990-1999 by type of investments

IRR32,0%

IRR40,8%

IRR43,7%

IRR47,0%

A.I.F.I.

Replacement Early Stage

ExpansionMBO/MBI

AB CDKPMG Corporate Finance

Page 36: - 1999 - Venture Capital and Private Equity in Italy A.I.F.I. Italian Venture Capital and Private Equity Association

The Industry Performance:Pooled IRR distribution 1990-1999

Number of

Investments %

Write off/negative IRR 19 9%

0% - 10% 25 12%

10% - 30% 52 26%

30% - 100% 74 37%

> 100% 32 16%

Total 202 100%

A.I.F.I. AB CDKPMG Corporate Finance