1. Vækstfonden
– An introduction
12 September 2011

2. About
• Promotes growth and innovation in entrepreneurial firms and
SME’s in order to achieve greater socio-economic returns
• Provides venture capital and competences – preferable by
co-investing with private partners
t Total balance:
Early stage EUR 350 m
companies
& venture
funds (75 %)
27. april 2012 / page 2

3. Why state intervention in the market
for venture capital?
Three factors may justify government intervention in capital markets:
1. Socio-economic returns/ positive externalities
2. Pump priming (removing barriers of entry)
VF Funds &
Intervention on the market for venture capital
VF Venture
3. Asymmetric information and credit rationing
VF Guarantees
Intervention on the market for loan capital
27. april 2012 / page 3

4. Products and target groups
Need for capital,
million DDK
Global
75 growth companies VF Funds
Equity
International
growth companies VF Venture
25
Regional
growth companies VF Guarantees
5 Borrowed
Local capital
growth companies ”Get started”-loan
Turn over
potential, million DDK
25 100 500+
27. april 2012 / side 4

5. Investment activity (1993-2010)
Phase III
1800
1600
1400
1200
Phase II
1000
Mio. Kr.
800
600
Phase
400 I
200
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Direct investments Investments in funds Guarantees
27. april 2012 / side 5

6. Activity in 2010
VF Funds
• Indirect investments in 12 new Danish companies via funds
• Follow-up investments in 43 companies
VF Venture
• Direct investments in 9 new companies
• Follow-up investments in 16 virksomheder
VF Guarantees
• Undertake to loan with guarantee to 334 companies
• ”Get started”-loan (Kom-i-gang-lån) to 144 companies
Accumulated portfolio ultimo 2010
• 170 companies (investments)
• 1.100 companies (guarantees)
27. april 2012 / side 6

7. VF Funds – Catalyst
Growth companies ‒ EUR 10 billion
EUR 1,5 billion EUR 8,5 billion
Private venture Other sources of
companies private funding
EUR 0,5 billion EUR 1 billion
Private
Vækstfonden
investors
27. april 2012 / side 7

8. Initiative for more risk capital
Pension funds
Max 3,75 bn DKK loan Min 1,25 bn DKK X KR.
Equity
VÆKST-
FONDEN
DANSK VÆKSTKAPITAL
Funds
Companies
VÆKSTLÅN VÆKSTKAUTION 3 MEZZANINKAUTION
27. april 2012 / side 8

9. What are other countries doing?
Sweden Norway
• Industrifonden • Argentum
• Sjätte AP-fonden • Investinor
Finland USA
• Industry Investment • SBIC Program Overview
• Tekes
• Finvera
UK
• UK Innovation
Investment Fund
• NESTA
27. april 2012 / side 9