RISK CAPITAL AND VENTURE CAPITAL FUND IN BASILICATA REGION Ljubljana, 4th October 2017 Speaker: Vito Pinto

Sviluppo Basilicata’s experiences in Risk Capital Fund is the Local Development Agency of Basilicata Region. gained experience in Risk Capital for SMES, by managing, in the last 20 years, 3 Risk Capital Funds. was one of the the first Development Agencies to manage a risk capital measure in South Italy, using public resources. Two Funds were part of two Global Grants directly allocated by European Commission to Sviluppo Basilicata.

The risk capital measure takes the form of participation into SMES. Sviluppo Basilicata’s experiences in Risk Capital Fund The risk capital measure takes the form of participation into SMES. Sviluppo Basilicata injects capital in exchange for shares in the business. The Fund may invest in enterprises active in nearly all sectors of the economy, (not only in innovative enterprises) settled in Basilicata Region. Principally PRIVATE EQUITY INVESTMENTS (enterprises already operating, with a long experience).

NUMBER OF SUPPORTED ENTERPRISES TOTAL INVESTMENT’S AMOUNT Sviluppo Basilicata’s experiences in Risk Capital Fund RISK CAPITAL FUND DATE NUMBER OF SUPPORTED ENTERPRISES TOTAL INVESTMENT’S AMOUNT Global Grant 1989/1993 (FESR) 1996 17 € 5,187,000 PIC PMI Grant (FESR) 2001 2 € 1,136,000 Global Grant 1994/1999 (FESR) 2003 4* € 2,400,000 Total   23  € 8,763,000 * 3 equity e 1 quasi equity

THE REGIONAL VENTURE CAPITAL FUND Sviluppo Basilicata’s experiences in Risk Capital Fund AT THE END OF DISINVESTMENT PERIOD: 3 write off, 3 forced execution of the outstanding debt; 17 exit (with a capital gain) The financial resources obtained by «exit» were used to set up a new risk capital fund: THE REGIONAL VENTURE CAPITAL FUND

REGIONAL VENTURE CAPITAL FUND BASILICATA Regional Venture Capital Fund Basilicata: general information REGIONAL VENTURE CAPITAL FUND BASILICATA scheme notified to the European Commission the Fund plafond is € 8,000,000 resources used come from the reuse of previous interventions at the same time (revolving fund). Sviluppo Basilicata S.p.A. is the subject appointed to manage Fund

SMEs with innovative business ideas and/or growth programs Regional Venture Capital Fund Basilicata: purposes and recipients PURPOSE The purpose of the Venture Capital Fund is to encourage the creation and development of SMEs located or planning to locate in Basilicata (headquarters). RECIPIENTS SMEs with innovative business ideas and/or growth programs in compliance with existing regulations not listed on regulated markets operating in the sectors admitted by regulation

temporary (maximum 7 years) Regional Venture Capital Fund Basilicata investment The Venture Capital measure takes the form of participation into SMEs. Sviluppo Basilicata injects capital in exchange for shares in the business, according to the Pre-money evaluation. Equity participation is: a minority holding (maximum of 49% of the share capital of company); temporary (maximum 7 years)

Regional Venture Capital Fund Basilicata investment The Fund may invest above all in innovative enterprise, in innovative sector, characterized by high level of risk but potentially economically viable, (enterprise in Early Stage or Expansion phase) These are enterprises in which institutional investors (banks and private investors) would invest with difficulty. This financial instrument could be very suitable for SMEs operanting in CCI sector.

Assistance from the Fund is limited to 70% of the investment. Regional Venture Capital Fund Basilicata: co-investors CO-INVESTORS The Fund can operate only in cooperation with one or more private co-investors (other funds, business angels, private investors, members of the same company). Assistance from the Fund is limited to 70% of the investment. The remaining 30% must be carried by one or more co- investors, of which: at least 15% by co-investors outside the company (crowfunding….) maximum 15% from those already members of the SMEs beneficiaries of the intervention

CO-INVESTORS BENEFITS Regional Venture Capital Fund Basilicata: co-investors CO-INVESTORS BENEFITS For the investment in equity there is an asymmetrical distribution of risks and revenues: additional premium in case of disinvestment (exit) very profitable mitigating losses in case of disinvestment (exit) negative

sale of shares to shareholders of the subsidiary company Regional Venture Capital Fund Basilicata: disinvestment WAY OUT sale of shares to shareholders of the subsidiary company sale of units / shares to other institutional investors sale of units / shares to third parties sale through a public offering, including the listing of the Company on regulated markets (IPO - Initial Public Offering)

obligations of investors and shareholders Regional Venture Capital Fund Basilicata: governance GOVERNANCE participation will be governed by special shareholders' agreements and contracts will be signed between Sviluppo Basilicata, co-investors and shareholders of SMEs, which will govern in particular: obligations of investors and shareholders clauses to ensure the divestment in companies rights to appoint members of the Board and the Board of Auditors

Applications submitted 60 Regional Venture Capital Fund Basilicata: Final outcomes FINAL OUTCOMES Applications submitted 60 Applications accepted for financing 9

9 Investments: 2 Expansion 7 Early Stage Regional Venture Capital Fund Basilicata: Final outcomes 9 Investments: 2 Expansion 7 Early Stage RESOURCES INVESTED: € 4.080.000 By Fund: € 2.740.000 By private investor: € 1.340.000 Economic sector ICT, Fintech, e-commerce for renewable energy, web platform for young soccer player, for educational tools, tourism, mobility, food, real estate crowdfunding)

Equity participation of Sviluppo Basilicata Regional Venture Capital Fund Basilicata portfolio Enterprises Equity participation of Sviluppo Basilicata DOMEC S.P.A. 21.26% CERVELLOTIK S.R.L. 24.84% IGOON S.R.L. 25.11% GIOVANI PROMESSE S.R.L. 26.32% CHEF DOVUNQUE S.R.L 28.00% PICKMEAPP S.R.L. 27.32% SLOWFUNDING S.R.L. 23.92% BIOMASSAPP S.R.L. 20.16% PERSONAL SHOP S.R.L. 27.35%

www.pickmeapp.it www.giovani-promesse.it Regional Venture Capital Fund Basilicata portfolio www.biomassapp.it www.igoon.city  www.pickmeapp.it www.domecsolutions.com www.giovani-promesse.it www.chefideakit.com www.slowfunding.it  www.personalshop.me www.cervellotik.com

Thank you for your kind attention