Fintech Belgium_Webinar 4: Financial Crisis Survival / Covid-19: Home Working Challenge - 10-04-20

1. Webinar 4: Financial crisis survival
/ Coronavirus Homeworking
Challenge

2. Programme
• Introduction by Réseau Entreprendre
Brussels with Aurélie Dekegeleer (5min)
• Insight and solutions by :
1. Corentin Scarcez from Finance Brussels
(10min)
2. Claire Munck from Be Angels (10min)
3. David Van der Looven from Edebex (15min)
• Q&A session (15min)
• Conclusion by Toon Vanagt (5min)

3. Your Speakers
Toon Vanagt
Host, Board of FinTech Belgium
CEO of data.be
Corentin Scarcez
FINANCE & INVEST BRUSSELS
Senior Financial Analyst
Claire Munck
BE ANGELS
CEO
David Van der Looven
EDEBEX
Cofounder / CCMO
Auréllie Dekegeleer
RESEAU ENTREPRENDRE BRUXELLES
Managing Director

4. Your Speakers
Corentin Scarcez
FINANCE BRUSSELS
Senior Financial Analyst

5. finance&invest.brussels completes
the financing chain
Idea Product Prototype First
Customers
Growth Expansion
Potential
Time
FFF’s
Business Angels Seed Capital Venture
Capital
Private Equity Public
Markets

6. instruments in its financing
toolbox
Equity Convertible debt Subordinated debt Debt & Co-Financing
Creation, development, innovation, internationalisation
and environmental transition
From € 100.000 to € 5.000.000
Exit within 5 to 7 years Granted for 10 years max.Granted for 3 to 5 years
Usually without a guarantee requirement
► Equity stake taken to
provide a capital increase
► Minority shareholder
alongside other private
investors
► Position taken by investor, conversion
decision in his hands
► If conversion ratio is determined, a
valuation must be agreed upon
► If conversation ratio not determined, a
valuation can be postponed
► Conversion can be refused by paying a
non-conversion penalty
► Company needs to be able to carry the
debt
► Debt is subordinated to traditional bank
loan
► Can be considered as Tier I capital
► Improves Debt-to-Equity ratio
► Company needs to be able to carry the
debt
► Debt is complementary to traditional
bank loan
► Bank guarantees are shared amongst
parties (“pari passu”)

7. What do we see during COVID19?

8. Health, streaming, e-commerce…
are outperforming the market
Source : Dealroom.co and Google finance, March 2020, (1) Note : Nasdaq and S&P500 dropped roughtly 25% in the same period
Graphic 1 : Impact of Corona Crisis on startups and tech

9. The main trend now is the
acceleration of digital adoption
Source : Finch Capital, March 2020
Graphic 2 : Trend % working from home 2009-2018 Graphic 3 : Overall App Store rank in China by downloads

10. Both incumbents and fintechs are
facing a digital test

11. digital disruption as opportunities
in post-crisis
Table 2 : Perspectives about banking and payments fintech sub-sectors during and post
COVID19 crisis

12. How can finance&invest.brussels help?

13. Finance&invest.brussels is still
open
 We are still investing
- Potential longer time
- Focus on helping portfolio companies
 No sectors are ‘off-limits’
- We are investing in the long-term
- Our points of attention will be growth drivers for the next 12 months
 Valuations are likely to be impacted
- Decrease in value because of new market conditions
Source : https://sifted.eu/articles/startup-funding-coronavirus/
“Great companies are built in tough times, and valuations will be
attractive. Keep fundraising.”
Fred Destin, Stride VC

14. What we recommend as a public VC
 Act as a leader
- Open to act
- Manage complexity
- Doing nothing is not the right solution
 Reforecast the budget : base line
without COVID19, worse and
very worse case
- Forget all your playbook metrics, retest channels,
redo playbooks
- Focus on ROI channels
- Dump your 2020 strategy and BP
 Manage CF
- What is your runway? Calculate your runway in
multiple ways
- <12 months : increase runway by decreasing costs
- >12 months
 Shift from acquisition to
retention
- Focus on customer portfolio : Customer success
should not be decreasing
 Sales
- Terms and conditions : optimize for bigger terms
(quarterly/annualy) if possible (CF upfront)
- Acquire client with free months (growth rather than
margin)
 Government aid programs
- Check out public support
FAQ 1819
 Scroll on the internet – highly
valuable sources/docs
The Coronavirus Crisis Checklist for Startup CEOs
– Medium
The economics of a pandemic: the case of Covid-19
– London Business School
Impact of the Corona crisis on startups & tech
– Dealroom.co

15. Thank you!

16. Your Speakers
Claire Munck
BE ANGELS
CEO

17. BeAngels, where the smart
money is
Leading ecosystem bringing
together hand-picked
entrepreneurs and quality angel
investors

18. Key figures
20
years of
experience
> 400
rounds
>50
m€
contributed
Overall
In 2019
330
investors
71
Pitches
34
fundraising
3,2 M€
invested

19. They have received BeAngels
support
>50
m€
contributed

20. What is the situation for companies in
existing portfolios?
1. Hands—on / proactive approach by most business
angels
- Cash is king
- Inform shareholders of impact and measures taken
- Transparency
2. Adverse reactions depending on sectors of activity
- Review spending on marketing and sales
- Focus on product development
- Few start-ups experience high growth in activity
3. Encourages innovation, creativity by teams

21. For companies looking for
financing
1. Is a good time?
1. Do you need the cash now?
1. Financial need, valuations and terms

22. How are business angels reacting to the
crisis?
1. Start-up enthusiasts
1. Portfolio monitoring vs new investments
1. Crises = opportunities = innovation

23. How to submit your project ?
1. beangels.eu
1. Internal pre-selection
1. Selection committee
1. Online pitch
1. BeAngels organizes the meetings with the investors

24. Contact
Claire Munck
CEO of BeAngels
Cantersteen 10, 1000 Brussels
clmunck@beangels.be

25. Your Speakers
David Van der Looven
EDEBEX
Cofounder / CCMO

26. Marketplace B2B Invoice
Financing
• 40 collaborators
• + € 500 million financed
• + 2000 sellers type SME
• + 25,000 invoices sold
• 5 countries : BE, FR, NL, LUX,
PT

27. A cooperative B2B Finance
Model

28. A cooperative B2B Finance
Model

29. Disruption in SME
Financing
SIMPLICITY – just send an
invoice
ACCESSIBILITY – acceptation
SPEED – 72 hrs
FLEXIBILITY – no obligations
USER EXPERIENCE – 100 %
digital
TRANSPARENCY – no hidden

30. Instant Cash for your Invoices
Acceptance Criteria
Average Cost
DEBTOR
Good quality debtor = insurable debtor
INVOICE
• B2B
• Products/services that have been completed or delivered (no down payment invoices)
• Minimum amount of € 5,000 (incl. VAT)
• In euros
• Not due: minimum of 20 days before the due date
• Debtors based in Belgium, Netherlands, Luxembourg, France, Germany, UK, Italy or
Portugal
1 – 4%

31. (Post) Covid 19 – Cash is
King
BUYERSSELLERS DEBTORS
Credit
insurance
Authorities

32. Edebex – Tool in Economic
Crisis
Keep mobilising PRIVATE
money
In support of the REAL
economy

33. Agility – search for the new
normal in an exceptional
situation
Product innovation – Edebex
SCF
Edebex – Tool in Economic
Crisis

34. • NEXT FRIDAY AT 14PM:
Webinar 5: Marketing & Communication/ Coronavirus
Homeworking Challenge
• THURSDAY APRIL 23rd FROM 14PM TO 18PM:
Digital Classroom: How to become and stay licensed in
Belgium?, in collaboration with Febelfin Academy