Investment brochure - InnovationQuarter

Investing in greener, smarter and healthier

Elevating the future together of 130+ innovative > Portfolio startups & scaleups of 250+ international > Network co-investors internal collaboration and > Strong extensive network to drive innovation and boost international growth

Inhoud InnovationQuarter in a nutshell................................................................................................................................................... 4 InnovationQuarter as an investor.............................................................................................................................................. 5 Total fund size.................................................................................................................................................................................... 6 Lifecycle funding: investor in all stages of growth............................................................................................................... 7 Financial instruments and investment ranges........................................................................................................................ 8 UNIIQ .................................................................................................................................................................................................. 9 InnovationQuarter Capital............................................................................................................................................................ 12 Energy Transition Fund Rotterdam ........................................................................................................................................... 15 ENERGIIQ........................................................................................................................................................................................... 18 Portfolio/UNIIQ .............................................................................................................................................................................. 22 Portfolio/InnovationQuarter Capital ....................................................................................................................................... 23 Portfolio/Energy Transition Fund Rotterdam ....................................................................................................................... 24 Portfolio/ENERGIIQ ...................................................................................................................................................................... 25 InnovationQuarter Quickscan.................................................................................................................................................... 26 Contact information....................................................................................................................................................................... 27

3

Zuid-Holland is rich with entrepreneurs with innovative technological ideas that can make the region greener, smarter and healthier and change the world for the better. As a regional development agency, InnovationQuarter supports these companies in developing their business concepts and bringing them to market. By leveraging a combination of funding, extensive knowledge across multiple sectors, a vast network and involvement, we create strong, innovative ecosystems. With four funds, we invest in and support innovative, fast-growing local enterprises, as well as assist foreign companies in establishing themselves in this region. Our support empowers companies to innovate, invest and expand internationally. Together, we help ideas flourish. InnovationQuarter is an initiative of several government agencies and prominent knowledge institutions in the region.

InnovationQuarter as an investor InnovationQuarter strategically invests patient capital in disruptive startups and scaleups with high technological risk. With €328 M in assets under management spread across four funds, we prioritise long-term growth over quick returns, always putting entrepreneurs and their companies first. Thanks to our extensive network of over 250 national and international co-investors, we connect our portfolio companies with key contacts.

InnovationQuarter has established itself as one of the most active investors in the Netherlands and certainly leads the way in Zuid-Holland.

5

Our funds UNIIQ InnovationQuarter Capital Energietransitiefonds Rotterdam ENERGIIQ

€ € € €

50 M 143 M 100 M 35 M

€

328 M

Lifecycle funding Investor in all stages of growth. We invest in high-tech startups and scaleups in Zuid-Holland during all stages of a company’s development, from proof of concept to international expansion. We invest in early‑stage ventures and are not afraid to fund long-term projects as well. Our portfolio companies make the world greener, smarter and healthier.

Cumulative cash flow

InnovationQuarter Capital ENERGIIQ UNIIQ Energy Transition Fund Rotterdam

Phase

Development stages:

Research & development

Prototype/ Proof of concept

Pilot/ Demonstration

Commercialisation & Production

Proven & Competitive / Series A

Internationalisation / Growth / Buy & Build

7

Investment ranges

Convertible loan

Subordinated loan

Loan with guarantee

Equity

Vendor lease

Financial instruments

UNIIQ ENERGIIQ

€ 350,000

€ 250,000

InnovationQuarter Capital

€ 250,000

Energy Transition Fund Rotterdam

€1M

€4M €5M € 10 M

UNIIQ Finance for the future

Arctic Reflections UNIIQ portfolio company

UNIIQ (€50 M) is a proof-of-concept fund that helps entrepreneurs in Zuid-Holland bring unique innovations to the market faster. We provide university spin-offs and innovative startups with seed capital to help them realise their plans and bridge the riskiest stage — from concept to promising company. More than 62% of UNIIQ startups have already secured follow-on funding, totaling more than €125 M.

UNIIQ is powered by Erasmus University Medical Center, Delft University of Technology, Leiden University, Erasmus University Rotterdam, InnovationQuarter, the European Union, the Province of Zuid-Holland, the Dutch Ministry of Economic Affairs and Climate, the Netherlands Enterprise Agency (RVO), the Netherlands Organisation for Applied Scientific Research (TNO) and the Municipalities of Rotterdam, The Hague and Leiden.

9

A UNIIQ investment offers… >

Up to €350,000 in venture capital during the proof-of-concept stage

> Disbursement in tranches, contingent upon the achievement of specific milestones > Funding provided as a convertible loan that -

also gives the entrepreneur conversion rights

-

either matures after 3 years

-

or converts at the valuation of a follow-on investor minus 25%

-

can be repaid at any time without penalty

> Support on financial and strategic issues by a seasoned investment team > Strong internal collaboration and extensive network to drive innovation and boost international growth > A broad range of reputable investors and VCs for follow-on funding opportunities

UNIIQ investments must meet at least the following criteria: >

The capital is used for the technical and market

>

property rights

validation of an innovation >

The company has a strong, ambitious team

>

>

The company secures funding for a minimum

The company is located in the province of Zuid‑Holland

willing to assume entrepreneurial risk >

The company owns the relevant intellectual

>

The investment qualifies as an impact

of 12 months. Securing follow-on funding

investment, aimed at generating positive,

(or cash‑flow-positive growth) is feasible after

measurable outcomes for a cleaner, smarter

this period

and healthier world, alongside healthy

The innovation offers unique competitive

financial results

advantages, laying the foundation for

>

There is no project funding involved

sustainable expansion

11

InnovationQuarter Capital InnovationQuarter Capital (€143 M) strategically invests in disruptive startups and scaleups with high technological risk. We focus on innovative industries in Zuid-Holland, including the key sectors Energy & Chemistry, Digital Technology & Cybersecurity, High-Tech Systems & Aerospace, Maritime & Harbour, Horticulture & Food and Life Sciences & Health. As a founder-friendly investor, we offer subordinated loans, convertible loans and/ or equity.

At InnovationQuarter, we believe that social impact and healthy financial returns go hand in hand.

Villari InnovationQuarter Capital portfolio company

An InnovationQuarter Capital investment offers… > An experienced, professional team > An extensive network of investors to maximise co‑funding and follow-on funding > Long-term financial support > Flexible financial instruments of up to €5 M > Capital market insights > Support for successful growth > Strong internal collaboration and extensive network to drive innovation and boost international growth

13

InnovationQuarter Capital invests in companies active in the following sectors: Energy & Chemistry

>

In companies with high technological risk

>

In companies with a strong, committed

Digital Technology & Cybersecurity High-Tech Systems & Aerospace Maritime & Harbour Horticulture & Food

management team >

In companies with a convincing business plan and a scalable business model

>

In companies that create a positive impact in the region

>

Preferably together with reputable private co‑investors

Life Sciences & Health

>

Always as a minority shareholder

Energy Transition Fund Rotterdam

Pryme Energy Transition Fund Rotterdam portfolio company

The investment fund of the Municipality of Rotterdam (€100 M) invests in disruptive companies and large-scale sustainable projects that can contribute towards the energy transition and circular economy. The fund aims to reduce CO2 emissions, improve air quality and minimise raw material consumption. Our team has many years of experience in the energy transition and possesses extensive investment expertise.

Energy Transition Fund Rotterdam is an initiative of the Municipality of Rotterdam.

15

An Energy Transition Fund Rotterdam investment offers… >

Investments ranging from €1 M to €10 M per company or project

>

Strategic investments in capital-intensive scaleups, prioritising innovations in energy transition and comprehensive circular economy solutions

>

A hands-on investor with deep investment experience in energy transition

>

An extensive network of 250+ reputable co-investors and knowledge partners

>

Flexible financial instruments (subordinated loans, debt, guarantees and equity)

Energy Transition Fund Rotterdam investments must meet at least the following criteria: >

The company’s activities generate significant social impact in the Rotterdam area, aligning with local policy objectives

>

The company is in its scaleup phase (potentially involving new capital-intensive technologies and pilot facilities)

>

The company has a viable business case that supports an investor-ready business or project plan

>

The company must be a distinct legal entity

17

ENERGIIQ ENERGIIQ (€35 M) has many years of experience in energy transition and venture capital. We specialize in scaling small companies. Our fund supports disruptive technologies in energy storage and conversion that make sustainable solutions more cost-effective and efficient than fossil-based alternatives. By leveraging breakthrough technologies in smart materials, AI and data, we can help achieve maximum output at minimal cost, and accelerate the energy transition in a meaningful way. ENERGIIQ has already established an impressive portfolio, leaving limited opportunities for new investments.

ENERGIIQ Logotype

10.08.2017

ENERGIIQ is an initiative of the Province of Zuid-Holland.

Canopus ENERGIIQ portfolio company

An ENERGIIQ investment offers: >

Up to €5 M in venture capital

>

Both hardware and software investments

>

Close collaboration with our portfolio companies in areas such as networking, strategy and management development

>

A hands-on investor with deep investment expertise and many years of experience in energy transition

>

Strong internal collaboration and extensive network to drive innovation and boost international growth

>

A broad range of reputable co-investors and knowledge partners

19

ENERGIIQ investments must meet at least the following criteria: >

The capital is used for testing and commercialising the energy-related innovation

>

At least 50% of the total investment requirement is secured from reputable private investors

>

The company has a convincing, comprehensive business plan and strong management

>

The company owns the relevant intellectual property rights

>

Projected CO2 emissions reduction must be realised in Zuid-Holland or the company is located in Zuid-Holland

A selection from our portfolio You can view our entire portfolio at www.innovationquarter.nl/portfolio-bedrijven

21

PORTFOLIO

Bi/ond, Delft >

Product: Microchips that faithfully mimic human organs

>

Sector: Life Sciences & Health

Bi/ond has developed an organ-on-chip platform that allows biologists to place a person’s cells on a microchip. The cells are put in a special environment and receive oxygen and nutrients, simulating the conditions of the human body. Bi/ond’s patented technology enables the chips to be optimised for a wide range of applications, including heart, lung, brain and cancer tissues.

The power of microelectronics, which makes Bi/ond’s product so unique, allows researchers to determine the right medication based on a person’s specific needs and brings personalised medicine within reach.

UNIIQ

€ 250,000

PORTFOLIO

Q*bird, Delft >

Product: Quantum networking equipment

>

Sector: High Tech Maakindustrie / Cybersecurity

Q*Bird has developed novel quantum networking equipment that encrypts data using fundamental laws of nature. This encryption provides proven security against attacks, including those from future quantum computers. A spin-off of QuTech (a collaboration between Delft University of Technology and the Netherlands Organisation for Applied Scientific Research), Q*Bird aims to protect data communication and digital infrastructure with patented technology that outperforms competitors in both security and cost. The company’s technology also lays a secure foundation for the future quantum internet, where quantum computers will be connected over long distances worldwide.

InnovationQuarter Capital and other investors

€ 2.5 M 23

PORTFOLIO

SolarDuck, Rotterdam > Product: Offshore floating solar systems — an innovative approach to creating floating offshore solar farms at sea using aluminium frames. >

Sector: Energy, Maritime & Harbour

Katapult Ocean, Green Tower, Energy Transition Fund Rotterdam and Invest-NL comprise an international consortium that shares SolarDuck’s mission to accelerate sustainable offshore energy production through floating solar power. Thanks to this funding, SolarDuck can focus on implementing its first commercial projects.

Energy Transition Fund Rotterdam and other investors

€ 15 M

PORTFOLIO

Canopus, Den Haag > Product: Breakthrough drilling technology that considerably reduces the cost of sustainable, reliable heat supplies. >

Sector: Energy, High-Tech Systems

The Hague-based company Canopus has developed drilling technology that makes directional drilling cheaper. This technology allows for the cost-effective drilling of branched, multilateral structures, resulting in up to 2.5 times higher energy production than conventional technologies — a breakthrough for energy producers. Canopus uses a technique called directional steel shot drilling in which reusable steel shot is injected into the drilling fluid. The company created the technology specifically for geothermal energy.

ENERGIIQ and other investors

€ 2.6 M 25

Use the InnovationQuarter Quickscan to discover which of our funds can make your ideas flourish.

Contact information innovationquarter.nl/en/investeren WTC The Hague Prinses Margrietplantsoen 41 2595 AM The Hague The Netherlands info@innovationquarter.nl T +31 88 4747 255

27

Elevate your ideas innovationquarter.nl