InnovFin SMEG in Bpifrance’s - PowerPoint Presentation

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InnovFin SMEG in Bpifrance’s offer : “The Financing Continuum of Innovation”

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Sylvie Cogneau Bpifrance On-site mentoring mission / Access4SMEs in BulgariaSofia, October 16, 2018

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2Bpifrance : General information

Established by the law of December 31, 2012,

Bpifrance

is equally held by the French state and

Caisse

des

Dépôts

Its activities are organized around three business lines :

Bpifrance

Financement

Bpifrance Assurance Export *

50%

50%

Simplified

chart

Bpifrance

Investissement

Bpifrance Assurance Export* : Credit Insurance, Foreign Investment Insurance, Market Survey Insurance, Exchange Risk Insurance, Bonds and working capital guarantee were integrated to Bpifrance on January 1st, 2017

Other

(mainly private commercial banks)

90,6%

9,4%

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3

Bpifrance

backs innovative projects by financing R&D and industrial / commercial launch, or through equity investmentsBpifrance provides a wide range of loans to support the development of companies of all sizes

Bpifrance

guarantees banks to enhance financing of SMEs at their riskiest life stages

Bpifrance

invests as a minority investor either directly in growing companies, or indirectly in private equity funds, themselves investing in SMEs

Bpifrance provides the tools and support necessary to companies’ internationalization

INNOVATION

GUARANTEEPRIVATE EQUITYEXPORT

FINANCINGA partnership throughout the whole lifecycle of our clients

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448

regional offices

90%of decisions taken in the regional offices1contact for companies

In every region:

A guarantee finance officer

A

dedicated

Export

Financing

Expert One or more Business France officersAn innovation officer An equity investment officer An organization designed to bring us

closer to the entrepreneursBpifrance works in collaboration with regional authorities, to develop financial solutions adapted to territorial specificities

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Bpifrance

supports innovative projects, whether individual or collaborative, by financing R&D and the go-to-market plan, or even by acquiring a stake in capital:INNOVATION

Seed-capital loans to prepare for fund-raising

Innovation loans to launch innovative products and services on the market

Equity investments, either directly or through our partner funds

Support to innovation: grants, repayable advances, interest-free loans

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French entrepreneurs require fertile ground and a variety of tools to be able to grow

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Connecting the ecosystems and catalysing public policy in favour of innovation

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We help you start an innovative company:

Pre-creation support

We support you so as to

Confirm the feasibility of your innovative project

Prepare the arrangement

and partnership of your

collaborative project

We facilitate the Participation

of capital investors:Seed loansEquity stakes via direct funds and partnersQualification of “innovative company”for access to FCPI

We finance the completion of your project:For individualAid for innovation developmentFor partnershipsAid for collaborative projects For internationalInnovation development in international collaborationWe accelerate the industrial and commercial launch:Loans for innovationand help you obtain

a bank loan Guarantee for bank loans

The financial support offered by our teams : Grants, repayable advances, zero-interest loans, reduced-rate loans, acquisition of an equity stake and guarantee for a bank loan, depending on your project’s risk and progress (distance to market).

TRANSFORM

YOUR IDEA

BOLSTER

YOUR EQUITY

IMPLEMENTYOUR

PROJECTSACHIEVE YOURSTRATEGYEXPLORETHEFEASIBILITY

We support

your innovation projects so that they are more likely to be successful

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The financing of very small to medium-size companies presents a high risk when:the company is being created or transmitted,investments in risky phases such as international expansion or innovation :

Bpifrance provides directly companies with grants and loans for innovation and is also able to guarantee 40-70% of the risk taken by banks and investors

Bpifrance

shares

the

risk

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Bpifrance

guarantee

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10

Reimbursable

Advance

Seed

Investment

Loan

Growth Loan

Grant

Risk

level

Sales

Investments

Formulation

Feasibility

Development

Pre-

launching

Launching

&

growth

time

Innovation

loan

Innovation Financing products depending on the project’s progress

Seed

Loan

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EIB Group offer : Division of roles

SMEs

–Mid capsLarge entreprises

At all stages of

development

Equity

/

Guarantees

via financial intermediaries

Tickets 25K – 7,5 M €Tickets 7,5 M – 500 M €ü

EIF

EIB

11

Equity

/

Guarantees

via

financial

intermediariesü

Direct

loans

ü

JUNCKER PLAN

Funds

strategic

investments

Reinforcing

EIB group

500 Billion € of

investments

in 2020

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Transfer of

technology

funds

and

seed

fundsVenture capital fundsBusinessAngelsCapital devlopment

funds

Debt funds& mezzanine

12EIF EIB

Portfolio EIB and EIF: +70 French funds

from seed to

growth

1.

Equity

of EIB Group

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Enterprises

Profile

ModalitiesGestionnaireCOSMELoan Guarantee Facility

Enterprises

at the

growth

stage

/ competitivness Free guaranteeAmount of the loan: max 150 K € per max 12 months

EIF

INNOVFINInnoFin SME GuaranteeInnovative SMEs (Criteria list)Guarantee subsidized

feesAmount : from 25K to 7,5 m € per 1 to 10 yearsEIFINNOVFIN

InnoFin

Mid cap Guarantee

Innovative

mid caps

Guarantee

fees

under market

conditionsAmount : higher

than 7,5 m€

EIBCREATIVE EUROPECreative Cultural Sector Guarantee FacilityCreative industries

enterprises and cultural enterprises

Free guarantee

Loan amounts

limited to 150 K € per max 12 monthsGuarantee up to 70%EIF

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2. Main

guarantees

of EIB Group

50% max per

guarantee

loan

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Enterprises

operating in the EU

which

have :

Solid Business model /

Defined

strategy

Solid

Capitalistic structure

Financial needs linked to the growth of the business, Innovation and energetic

efficiency, industrial

projects, circular economy

Target

Objective

Amount

– 7,5 to 500 m €

Duration

–

Generaly

5 to 7

years

(Longer on a case-by-case basis)

Modalities143. Direct loans of EIB

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Funds of EIB Group in Bfpifrance’s offer

(1/2)Supported by InnovFin guarantee programme / Horizon 2020

PAI (

Seed

Investment Loan):

50%

guaranteed by the EIF+ 30% BpifrancePI (Innovation Loan) : Guaranteed to 50% by EIF + 30% BpifranceInnovationSeed Investment

Loan EIF

Reinforcing the cash of the company during a fundraisingEIF Innovation LoanFinancing the immaterial

expenses of the industrial & commercial launch of an innovationSupported by the Creative Europe programme

Guaranteed to 70% by EIF

Financement

Creative

Industries

Loan

Financing the

immaterial

expenses of companies

in creative

& cultural sectors

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+60 VC

funds

and

development

capital

co-invested

by Bpifrance and EIF

Minority investments

pari passu EquityIndustrial Projects Societies (IPS) Fund

Support, alongside mainly industrial partners, the projects transition to their industrialization phaseAgreement of co-investment EIB / Bpifrance 100 m€ in delegated management to BpifranceInvestments pari passu

with IPS

Funds of EIB Group in Bpifrance’s

offer (2/2)

Bpifrance takes

minority stakes

alongside

other investors

such as the EIF in capital investment funds

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1st Agreement signed with EIF under the Juncker plan in May 2015 

A portfolio of

EUR 420m of loans to innovative SMEs and Small Midcaps guaranteed by EIF Guarantee covering two recent products: The Innovation Loan (EUR 320m)The Seed Investment Loan (EUR 100m)

2

nd

Agreement

in

October 2016 3rd Agreement in October 2017 to increase the lending capacity of the 1st InnovFin contractCovering the 2 same loan products to innovative entreprises : The Innovation Loan : 1040m€ guaranteed to 50 % by EIF for the launching of the innovation on the market. For enterprises + 3 years old and less 500 employees, loan of 5 m€ max.The Seed Investment Loan

: 400 m€ guaranteed to 40% and now 50% by EIF for the reinforcement of young enterprises while successful raising money, loan of 500 k€ and now 1m max.

17Bpifrance’s InnovFin AgreementsIn 2013 a

previous RSI Agreement

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For the bankIt encourages the financing of innovation phases. The intermediary then finds himself well "placed" in the banking competition to enter those customers who create value for the future.

The risk is shared with the instrument. It’s lowering the risk exposure in the balance sheet of the FI. It’s improving the return on investment of the Equity ratio = with the same level of capital, banks can lend twice as much, because they make credit involving half of their own funds in case of disaster

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What are the advantages of using the

InnovFin

guarantee scheme?

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For the SMEThe interest rate of the loan is reduced thanks to the financial benefit retroceded to the SMELess collateral requirements (max 30% for the FI)

The scheme encourages the financing of risky steps in the development of innovation: it turns high risk into acceptable risk = the SME can get its financing.

At the macroeconomic level, a larger population of SMEs can benefit from the financing. 19

What are the advantages of using the

InnovFin

guarantee scheme?

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Examples

of EIF Innovation

Loans

Implementation of InnovFin

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MUQUANS

proposes a new generation of ultra-high performance measurement instruments based on a unique and patented technology, which relies on the utilization of laser cooling, trapping and manipulation of neutral atoms.

Localisation

:

Talence

(Aquitaine)

Creation :

2011 by 3 PhDs in quantum physics (a spin-off from

Institut

d’Optique

de Paris)

Staff

: 15

First round with 3 VC in 2014

: EUR 1,7m raisedNeeded financing to accelerate commercialization, consolidate technology and boost export

Eligibility

criteria: Has been awarded grants, loans or guarantees from an European or national R&I support scheme

Loan Amount: EUR 200 000

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Examples

of EIF Innovation

Loans

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Implementation of InnovFin

04/10/2018

DEVISUBOX

has developed innovative wireless photo webcams specialized to construction site monitoring. Commercialization started in 2013.

Needed finance for

: starting to

export –

targeted

markets

: US, Germany,

Emirates

Localisation

:

Marseille

Turnover

: ~2M€Staff : 24Eligibility criteria: Has been awarded grants, loans or guarantees from an European or national R&I support scheme Loan Amount: EUR 1 500 000

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Examples

of EIF Innovation

Loans

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Implementation of InnovFin

Provepharm

is a French pharmaceutical company dedicating in the development and valorization of Drug Products world wide

Needed finance for

: clinical studies required by the FDA to get a

marketing authorization on the US market

Localisation

:

Marseille

Turnover

: ~5M€

Staff

: 12

Eligibility

criteria

: R&I costs represent at least 10% of its total operating costs Loan Amount: EUR 2 000 000

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Examples

of EIF Innovation

Loans

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Implementation of InnovFin

NETATMO

is specialized in connected objects and intelligent systems (Home camera with face recognition, weather station for smartphone etc.)

Needed finance for

:

developing new commercialization channels and

investing

in R&D i

n order to keep a competitive edge

Localisation

:

Boulogne

Turnover

: ~12M€

Staff

: 46

Eligibility criteria: Has been awarded grants, loans or guarantees from an European or national R&I support scheme Loan Amount: EUR 2 000 000

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Examples

of

Seed

Investment

Loans

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Implementation of InnovFin

VOGO

develops and commercializes a very innovative video solution on mobile devices for sport event spectators (live access to different video cameras, slow motion, rewind etc.)

Partnership

with

BeIN

Sport

Raised EUR 4m in 2014

(from founders, VC, Languedoc Region)

Needed financing

to accelerate international expansion : office in Montreal in 2015, then Japan.

Localisation

:

Montpellier (Languedoc)Creation : 2013Staff : 6

Loan

Amount:

EUR 400 000

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Examples

of

Seed

Investment

Loans

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Implementation of InnovFin

XAMEN TECHNOLOGIES

designs and develops and commercialize unmanned aircrafts (drones) for civil uses (security of industrial plants, aid after natural disaster, environment protection etc.).

Needed finance to

: speed up commercialization

Raised EUR 1,3m in 2015

Localisation

:

Pau (Aquitaine)

Creation :

2012

Staff

: 10

Loan

Amount: EUR 250 000

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Thank you for listening Contact: sylvie.cogneau@bpifrance.fr26