1. This project is funded by the European Union Integrated Innovation Support Programme Encouraging the Serbian VC industry Robert Sheffrin - 14 th May 2013

2. This project is funded by the European Union Current Situation – “Serbian Dawn” Private equity & venture capital activity Increasing international & local investor interest Barriers to investment & potential solutions identified Pro-active private sector – SPEA, SBAN, BVF Public Sector initiatives: - WB EDIF / EBRD BAS - IISP: EU programme to develop venture capital - Min of Finance & Economy driving regulatory change 2 Integrated Innovation Support Programme (IISP)

3. This project is funded by the European Union EU IISP Project Component 2: Development of New Financial Instruments Research, report & recommend VC best practice Develop regulatory & funding mechanisms Develop & launch investment readiness training Develop an innovation voucher scheme 3 Integrated Innovation Support Programme (IISP)

4. This project is funded by the European Union IISP - Research & Reports 4 Integrated Innovation Support Programme (IISP) Tax & regulatory Financial intermediaries Mezzanine finance Barriers to investment EU Bench - marking Strategic Options for Serbia

5. This project is funded by the European Union Serbia - Key Regulatory & Tax Recommendations Specific: Regulate venture capital funds Permit investment by Serbian institutions in venture capital Facilitate exits from venture capital investments Eliminate double taxation of investors Tax breaks/incentives for investors General: Tax incentives for SMEs Fiscal consolidation & reform of para-fiscal charges ACTION - Regulatory Working Group formed 5 Integrated Innovation Support Programme (IISP)

6. This project is funded by the European Union IISP Investment Readiness Programme Remit: Investment readiness training for 100 SMEs Objectives: Increased awareness Investment ready SMEs Proposals for WB EDIF funds; other VC funds; angels; Belgrade Venture Forum; banks Continuity: 10+ investment readiness trainers trained Legacy programme for on-going delivery 6 Integrated Innovation Support Programme (IISP)

7. This project is funded by the European Union Target Groups Phase 1: “Finance 4 Growth” – 100 SMEs Programme: 2 day workshops Any innovative, growth orientated SME requiring investment Phase 2: “Investment Accelerator” – 20 SMEs 2 days additional training + follow on coaching For SMEs with effective business strategies in place + Need to focus on clarifying investment offer, preparing pitch, handling due diligence, investment negotiation 7 Integrated Innovation Support Programme (IISP)

8. This project is funded by the European Union Conclusion A time of real change Complementary EU initiatives Public and private sectors have same goal Expect gradual meaningful progress 8 Integrated Innovation Support Programme (IISP)

9. This project is funded by the European Union Thank you! Contact: Robert Sheffrin EU Integrated Innovation Support Programme for Serbia E. robert.sheffrin@iisp.rs / robert@sheffrin.co.ukrobert.sheffrin@iisp.rsrobert@sheffrin.co.uk T. +381 63 899 5821 / +44 772 071 5101 9 Integrated Innovation Support Programme (IISP)