EASEY Venture Capital Transfer
Young enterprises in the field of sustainable technologies usually miss an adequate track record, which is necessary for successful acquisition of VC. On the other hand, potential investors miss expertise to judge the potential of sustainable technologies.
The presented transfer study EVC T (EASEY Venture Capital Transfer) is disposed in the array of linking sustainability and venture capital market: Venture capitalists and developer of sustainable technologies have been linked together for conjoint benefits and generating a transfer of knowledge.
- Two-way sensitization (through interviews): The venture capitalists regarding sustainable development as well as sustainable technologies and, on the other hand, the developer of sustainable technologies regarding market and service orientation.
- The two parties were linked (through workshops) for future joint projects (capacity building) on the basis of "renewable raw material" projects of "Factory of Tomorrow" for illustrating sustainable technologies and the adjacent modulation of the venture capital investment cycle (evaluation - searching for investors- entrance - support - exit).
A two-way awareness raising of the two groups (sustainability developers and private equity) was performed: The private equity-group had to be sensitized to sustainable development as well as to sustainable technologies. The group of sustainabletechnology-developers needed awareness raising regarding market and service orientation. This process was followed by close networking of the two groups. A shortand mid-term-knowledge-transfer was induced, and a concept to implement new financing routes was established.
As a result of the above-mentioned processes fields of consensus as well as fields of disagreement and conflicts of objectives were identified in the respective understanding of "sustainability and its financing". These topics were subjected to an intensive discussion process leading to a common approach. Options for the management of the development process of sustainable technologies to fulfill the demand for information of potential investors were also developed.
Differences in objectives result from a mutual lack of knowledge about individual motivation and development objectives, combined with inadequately communicated restrictions and options for the decision-making-process. The issues i) establishment of criteria and ii) transparency were identified as the main topics to create a common basis of co-operation.
A political course of action was developed, containing (amongst others) i) the development of a national private equity law following international best -practice and ii) the renewal of public guarantee systems. Furthermore a structure and a course of action for the development of a financing platform which fulfill the needs of sustainability were developed. These needs of sustainability are defined by:
- Transparency and
- A low-threshold access for the group of the sustainable-technology-developers.
The whole process of institutional arrangements and technology development from research to start-up activity should be modeled on this platform. High-tech start-ups and publicly financed research projects are defined as the target groups. The course of action for the financing platform was developed and structured according to the phases of the financial engagement (competence building, selection process, access conditions, evaluation, support, exit) as well as according to the groups of stakeholders (investors, intermediators, entrepreneurs, developers).
Dr. Jürgen Marchart
AVCO - Austrian Private Equity and Venture Capital Organisation
Project or cooperation partner
- Dr. Reinhard Paulesich
Wirtschaftsuniversität Wien, Institut für Regional- und Umweltwirtschaft