finding more “nuggets” in unexploited claims – connecting ...finding more “nuggets” in...
Post on 21-May-2020
3 Views
Preview:
TRANSCRIPT
1
International Management and Executive Search Consultants
allocate
Presentation at the Ecosummit 2014 Berlin, 04. June, 2014
Finding more “Nuggets” in Unexploited Claims – Connecting with the South East European
VC and Startup Scene - Dr. Jörg Fabri, CEO allocate International -
2 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Inhalt
Key aspects regarding the VC and startup situation in SEE/ TR
allocate’s approach to realize successful investments and opportunities in SEE/ TR
3 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Financial investors activity in Europe (amount in bn €, no. of companies)
After the financial crisis VC investments in Europe are still only at half the size compared to the time before 2008
Should VC investors and Startups just wait for better times or is it required to modify the approach and look out for new growth options?
Source: EVCA/ PEREP, allocate
4 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Incremental amounts raised during the year (€ bn)
It seems that the low investment intensity in Europe will not improve quickly since new raised funds are low and dominated by buyouts
What are the roots causes for this reluctance? Is Europe generally regarded as not sufficiently prospectus with regard to growth and stability?
Source: EVCA/ PEREP, allocate
5 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Venture Capital – Investments as % of GDP (2013)
Within Europe there is a large deviation regarding the application of VC investments – North-West much more developed than South-East
The situation in South East Europe could be characterized as a problem, but why not taking this simply as a great opportunity to exploit unexploited potential?
Source: Thomson Reuters, EVCA/ PEREP, allocate
6 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Annual investments of Financial Investors in the CEE region (2007-2012), in mn €
Strong deviation also within Eastern Europe – the investment activity in some CE countries is still very low and instable
Exploitation of opportunities for VCs and Startups in Eastern Europe requires a consistent regional and strategic approach – and just opportunistic actions
Source: EVCA/ PEREP, allocate
7 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
CEE Venture Capital investments by stage, 2007-2012, in mn €
Whilst the general VC investment activity in SEE has not yet recovered from the drop in 2008 specific investments in Startups seem to emerge
Considering specific features of the SEE markets – focus on Startups rather than on later stage ventures
Source: EVCA/ PEREP, allocate
8 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
CEE Venture Capital Investments by stage, 2007-2012 (nr. of companies)
Whilst the total volume of South East European VC investments is low the number of companies is even above the 2008 all time high
Smaller investments seem to be more attractive in the SEE market environment Source: EVCA/ PEREP, allocate
9 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
CEE Venture Capital Investments by Sector, 2007-2012, (in mn €)
VC investments in South East Europe are favouring IT, Communication and the Energy sector
The VC investments and Startup activities reflect specific features of the SEE region: good education, low labour costs and improvement needs and opportunities in the energy sector
Source: EVCA/ PEREP, allocate
10 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Venture Capital – Fundraising geographical breakdown(2013,(2012), Source of funds
The fundraising for South East Europe VC investments has to happen within Western Europe – largely utilizing EU framework conditions
Understanding the EU as one home market place for VC and Startups – facilitating more cross border activities rather than taking a too local view
Source: EVCA/ PEREP, allocate
11 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Innovation attitude of EU countries
VC and Startup actvity is much needed in SEE: within the EU RO and BG are the countries with the lowest innovation pace
The economic crisis 2009/ 2010 was a real break point in the positive development regarding innovation in RO and BG – this needs to be turned around quickly
Source: EU Innovation Scoreboard 2014
12 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Venture Capital in Turkey
As also being part of SEE Turkey is nevertheless a special topic – with its size, its growth and its specific cultural and business environment
All attractiveness indicators for Venture Capital investments in Turkey are constantly improving – some are already ranking in the first Quartile of the international comparison
Sourc: IESE
13 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Venture Capital in Turkey
With one exception Turkey ranks better than the Eastern European average with regard to VC performance drivers
Why sticking to the classical or mature VC markets whilst other opportunities maintain unexplored?
Sourc: IESE
14 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Inhalt
Key aspects regarding the VC and startup situation in SEE/ TR
allocate’s approach to realize successful investments and opportunities in SEE/ TR
15 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Overview allocate’s scope of activities
allocate’s scope combines the investors’ perspective with the ones of companies and Startups – acting as an entrepreneurial partner
• Creating opportunities • Funding /financing • Formation of
consortia • Programme
Management (BOOT)
• Search of targets /buyers
• Due diligence • Valuation • Post Acquisition
Management
• Corporate Strategy • Operational
excellence • P&L value
improvements • Interims-
Management
• HR –Strategy • Search • Management Audits • Compensation
Commitment for long-term entrepreneurial partnership alongside with leading edge service orientation
• Retainer / Fixed component
• Success Fee
• Fixed fees • Success fee
(where applicable)
• Success fees • Cost coverage/
small retainer
• Success fees • Cost coverage/
small retainer • Own investment1
1 Limited investment by allocate if requested
Project development/ Investments
Transactions/ (M&A) deals
Management Consulting
Executive Search/ HR Consulting
16 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Holistic approach for business development
Successful Investors and Startups have to consider all resources and functions – focus on technology alone is not sufficient
allocate can act as a driving force for formation of new companies and reinvention of existing companies
Capacities
Capital
HR
Materials/ Energy
Resources
Com
preh
ensi
ve
stra
tegi
c ap
proa
ch
Start
Objectives
Strategy „Where and how to compete?“
Processes „How to operate?“
Structure „How to manage?“
Benefit
Business units
Business model
Steering/ systems Organization
Vision
Operational processes
Support processes
• Development of strategic targets • Definition of corporate objectives • Timeline and milestones
• Objectives by org. unit • Measures for key accounts • Cost & market opportunities • Efficiency targets
• Key processes • KPIs
• Leadership • Communication • Incentives
17 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
The Smart & Sustainable approach
allocate’s focus on megatrends supports the identification of smart & sustainable future business models and promising new ventures
1 Bit, Atoms, Neurons, Genes Source: DSW,OECD, Monitor, WWF, allocate research
Future solution have to be…
„Green“ = sustainable
Megatrends
Urbanisation/ Demography/
Developing countries
BANG1 Technologies
Social and Value Changes
Energy/ Climate Change
• Monetization of women´s work
• Different ways of social interaction
• Anytime Anywhere Communication
• Human Enhancement
• Increased pressure on productivity
• Western values loose influence
• Entities outside governmental structures rise in importance and impact
• Efficient energy use, phase-out of carbon based sources
„Smart“ = profitable
Implication on strategy and resource allocation – more „smart & sustainable“ type of innovations required –
18 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Example: Positioning of electronic equipment manufacturers XXX relative to competitors (simplified)
The innovation radar gives early signals to develop the business model of companies towards more competitiveness
Key trends (innovation radar) Positioning
Markets
Technology
BU 4
C 2
Electronic Measurement
Life Science
C 3
C 4 C 4
Degree of specialization
General Purpose
Solutions
Radio
C 7 C 7 C 8 C 8
Comp. 1 (C 1)
Chemical Analysis …
BU 2 BU 1
Dedicated products
Services
Chromography
Spectroscopy ….
BU 3 wireless
XXX
XXX
XXX
XXX
Combination of know how (market and technology) to position along the dimensions specialization, market coverage and control of technology
19 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
• Basic principles of successful business models
• Development customer base ( Efficiency vs. “conventional”)
• Dynamics linked markets e.g. Heating/cooling equipment, smartphones, app provider,…
• Mobile applications
• Segmentation strategies to accelerate penetration of target markets
• Role of distributors
• Role of retail, wholesale
• etc.
Technology Lab Market Lab Society Lab
• Trends to facilitate adaptation of efficiency solutions
• Price readiness depending on personal values e.g.. CO2 reduction
• Willingness to generate power in-house
• Implementation barriers like computer skills, smartphone usage
• Demographic effects on purchase power of key market segments
• Regulation /subsidies
• …
• IT driven: all-in-one solutions, anytime-anywhere solutions, operating systems, communication standards, equipment, proprietary vs. open solutions, Steering/ Integration
• Heat driven e.g.. fuel cells, heating pumps , sterling motors
• Power driven e.g. Demand Response, renewables
• Traffic driven: e-mobility, hydrogen, infrastructure…
• etc.
Transfer of successful approaches of highly innovative industries and countries to SEE industries and companies
How to find the “nuggets”: „Labs“ help to link the product development of companies with important market trends Technology, Market- und Society Trends – in principle-
20 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Success factor incubator
allocate provides access to SEE Incubators and Startups: platforms and professional support are critical to the success of new ventures
Creating the best possible environment for VC investments in SEE and for Startups focusing on business opportunities in SEE
• Project ideas / small ventures need a “incubator” before they can face the strict KPI’s of the organization
• Ideas receive resources only by having a a clear and dedicated charter, by being well anchored in the organization and by going through a strict auditing and monitoring process
• The incubator protection is available for a limited time only
Comments Activities and roles in corporate new business development
PROMOTE
SPONSOR
DEVELOP
ADVISE MANAGE
21 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Example EU CORDIS programme
allocate can also support to exploit additional funds from EU programmes to stimulate innovation and technology transfer to SEE
22 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Case example Prista Oil Group
Success example from SEE: Established as a Startup active in many SEE countries we support Prista Oil Group now in the Supervisory Board
Key features: • Full range lubes, greases, waxes • Turnover > € 150 mn • Market share 5-55% (23 countr) • Ca. 550 employees • Blending & storage assets • Distributor for Chevron/ Texaco,
Ergon and Gulf Marine in SEE
Mile stones: • 1993: Blending plant in Ruse • 2004: Assets in TR and UKR • 2007: Acquisition of Verlia (BG) • 2009: Acquisition Bogdany (HUN) • 2010: 50,1% acquis. UZ Texaco • 2012: EBRD/ ADM acquire 30% • 2014: Acquis. Chevron RO/ CZ
Key features: • Wholesale trading of base oils • Turnover > € 350 mn • 250.000 tons lubricant trades • Tank storage assets
Key features: • Different batteries & LEDs • Turnover > € 120 mn • Market share 5-67% (25 countr) • Ca. 470 employees • Recycling & production assets
Mile stones: • 1999: complete modernization
incl. battery recycling • 2006: partial IPO – 24% free float • 2007: acquisition of another
battery company • 2010: Establishment of Octa
Light LED production
Prista Oil Group B.V.
23 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
International network
allocate – our strong international network is key to develop investment opportunities in SEE ,TR and beyond
Market access and delivery capability
Middle East Europa
Bahrain
Iran
Saudi- Arabia
Oman
Iraq Lebanon
Yemen
Kuwait Jordan
Qatar
Syria
United Arab Emirates
Oslo
Stockholm
Helsinki
Dublin
London
Amsterdam Brussels Warsaw
Athena
Kiev
Minsk
Budapest
Moscow
Prague
Reykjavik
24 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Key partner in SEE
A key partner for us is also Euroconsultants S.A. – with Greek roots but footholds in many other SEE countries
Long track record of joint business activities in GR and SEE
Jörg Fabri will be member of
Euroconsultants S.A. Executive
Board
25 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Personal contacts to key decision makers are key to success in Turkey
Conbridge, our key partner for Turkey: one of the most influential industrial networks with allocate represented in their board
EXECUTIVE BOARD • Cefi F. Kamhi, Chairman of the Executive Board • Mario Diel, President & CEO • Gazi Ercel, Chairman of the Advisory Board • Timur George Asaniya, Co Chairman of the Advisory Board • Halim Neyzi, Vice President • Cerim Celikbas, Board Member • Talmar Almagor, Board Member • Dr. Jörg Fabri, Board Member • Rainer Schorr, Board Member • Tülay Diel, Board Member
Partner in Turkey
26 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Intensity of Venture Capital activities
In Romania we closely cooperate with Quest Advisors – and arrange high calibre innovation events with key decision makers
Recognized track record with key companies in Romania – thought leadership approach
27 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Key data of CV
Mihail Stoyanov – our partner for special items in Bulgaria, Romania & Central Asia (Uzbekisthan) – now located in Berlin and present at Eco 14
12 years professional experience “Uz Ecoprotect”LLC – Tashkent, Uzbekistan – General Manager; “Prista Oil Holding” EAD – Sofia, Bulgaria – Transformer Oils Manager for Central and Eastern Europe; “Prista Oil Romania” S.A. – Bucharest, Romania – General Manager; “Prista Oil Romania”S.A. – Bucharest, Romania – Retail Manager; “Balkan Prodexim”SRL – Constanta, Romania – Manager; Associated partner of allocate International
Strategy, Design and building of new organizations, Organisational optimisation, Operations Management
Diploma in International Economic Relations, ASE Bucharest
Master Degree in Organizational Development, SU Sofia Mihail
Stoyanov
Sector focus
Functional focus
Professional experience
Project references
Education
Energy, Chemicals, Trade, Environmental Services, Infrastructure,…
A key professional to bring Western European and SEE affairs successfully together
28 140604_Ecosummit 2014_Berlin Realizing VC and Startup opportunities in SEE © allocate 2014
Contact data
OOO allocate International (Russia) Zemlyanol Val, 9., Business Center Moscow, Russia Fon: +49.211.137 233 21 Fax: +49.211.137 220 87 Mobile: +7 916 444 44 45 E-mail: info@allocate.de www.allocate.de
top related