FIFTH ANNUAL WIPO FORUM ON INTELLECTUAL PROPERTY AND SME Intellectual Capital Readiness Outreach and Support Programs on Intellectual property Financing INNOVATION ON SME FINANCING The experience of the Portuguese SME and Innovation Agency (IAPMEI) Jaime Andrez Chairman of the Board of Directors of IAPMEI Geneva, September 2007

Government Agency whose mission is to support economic policies oriented to micro, small and mid-sized companies Services provided to companies by IAPMEI are divided into the following major categories: Innovation and business environment Grants for investment; Technical Assistance; and Access to finance for SMEs. IAPMEI Portuguese Agency for SME

Provides co-investment and other risk-sharing features to the venture capital and private equity industry Provides guarantees to credit enhance the cash- conversion of bank loans through securitisation Provides guarantees to reduce the exposure of mutual guarantee societies Public Instruments for Risk Sharing Mutual Counter- Guarantee Fund Credit Securitisation Guarantee Fund Venture Capital Syndication Fund

INOFIN Financial Innovation Framework To promote efficiency in banking intermediation to stimulate the enlargement of capital markets To adjust existing instruments to the specific profiles of SME needs along their life cycle Main Objectives:

Bank Intermediation Mutual Guarantee Banks Loan Securitisation Equity Chain Origination Platforms Venture Capital Equity Markets Hands-- on Proximity Capilarity Hands-- off Immaterial Scale INOFIN Risk Sharing with Market Players SAVINGS SME

The Rational: Incomplete Nature of the Financial Markets Financial Markets Supply (Operators) Demand (SME) MIS-MATCH Business Profile Stage position in life curve Level of specialization Critical size Available Resources Human Capital Financial Structure Entrepreneurial Culture Entrepreneurial spirit Market culture Management Skills Management Teams Organization Information Systems MIS-MATCH Determined by Environment Regulatory issues Regulation Taxation Contracting and Law Transaction Costs Scale of Operations Geographical Dispersion Appraisal / Evaluation Risk-Reward Patterns Asymmetric Information Risk Perception Risk Profile of operators Liquidity Nature of assets Secondary / Exit Markets Determined by Theres a role for State under certain circumstances Insufficient coverage for certain segments Segments of limited attractiveness for financial operators - Financial Gap - Demand and Supply Constraints

INOFIN - Programs along the business life cycle FINICIA FINCRESCE FINTRANS Companies life cycle time

FINICIA Programme Financing SME Early Stages Facilitating access to finance for Entrepreneurs and Small Companies at the initial phases of their life cycle HIGH INNOVATION PROJECTS MICRO BUSINESS START-UPS REGIONAL BUSINESS INITIATIVES

FINCRESCE Programme Financing SME Growth Strategies Optimizing company financing conditions necessary to promote growth strategies and strengthen their competitiveness Upgrading on Risk Profile Promote Market Reputation Customized Financial Products and Services

FINTRANS Programme Financing Equity Transmission and M&A Encouraging founders succession and/or transfer of assets into new value chains, thus inducing regeneration of the Economy Company Restructuring Mergers and Acquisitions Management Capacity MBO-MBI

FINICIA Platforms Eco-systems for Start-Ups VC Companies SME Local Network Venture Capital Syndication Fund Risk Sharing Business Angels Corporate Ventures Procurement Approach Project Evaluation Investment Forum Business Follow Up Incubators Research Institutes Business Chambers Universities Development Agencies

FINICIA Figures Fund Raising New Companies, Investment and Job Creation 10 million – New venture capital fund 97 million Euros 75 million – New credit lines (for start ups)12 million – New mezzanine regional funds 111new companies – 10% of highly innovative projects 17million euros of total investment 381 new jobs Creation of 13 FINICIA Platforms near universities, with 85 partners Creation of KIT FINICIA with standard documents such as shareholders agreements and companies bylaws Favourable Environment

INOFIN is a contribution to ending the waste of ideas and entrepreneurs in Portugal.

INVITATION TO WPSMEE DELEGATES FORTHCOMING EVENTS IN PORTUGAL OCTOBER 8th – 9th 2007 EUROPEAN UNION PRESIDENCY FORUM ON FINANCING INNOVATION BEST PRACTICES – From Ideas to Market EUROPEAN COMMISSION + IAPMEI OCTOBER 10th 2007 MUTUAL GUARANTEE INTERNATIONAL SUMMIT EUROPEAN ASSOCIATION (AECM) + SPGM + IAPMEI DECEMBER 6th 2007 CONFERENCE ON SMEs EUROPEAN COMMISSION + IAPMEI + DGE (Ministerial Dept.) JANUARY 2008 (DATE TO BE DEFINED) CONFERENCE ON INTERNACIONALIZATION OF SMEs OEDC-OCDE + IAPMEI + AICEP (Investment & Exports Agency) YOU ARE WELLCOME and THANK YOU FOR YOUR ATTENTION!