Investment brochure brochure

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Innovation Quarter

Investments

Approximately 140 innovative startups & scale-ups in portfolio Network of > 250 international co-investors

Onlytogetherwecanmakeanimpact.

Content InnovationQuarter in brief

InnovationQuarter as an investor

Total fund size

Lifecycle financing: investor in all growth stages

Investment instruments and ranges

InnovationQuarter Capital

UNIIQ

ENERGIIQ

Energy Transition Fund Rotterdam

Portfolio / InnovationQuarter Capital Portfolio / UNIIQ

InnovationQuarter finances innovative companies in all stages of development, assists foreign companies in opening headquarters in Zuid-Holland, and fosters collaboration between innovative entrepreneurs, knowledge institutions, and government. This way, we are working towards a strong economic future for Zuid-Holland.

InnovationQuarter as an investor

InnovationQuarter invests patient capital in innovative startups & scale-ups with high technological risk. We don’t have a short investment horizon and always put the company and its entrepreneurs first. With a total fund size of €300 million, we invest from 4 funds: InnovationQuarter Capital, UNIIQ, ENERGIIQ and Energy Transition Fund Rotterdam. We have a large international network of over 250 co-investors, to whom we can introduce our portfolio companies and promising leads.

InnovationQuarter has grown to become one of the most active investors in the Netherlands and by far the most active in Zuid-Holland.

million Innovation Quarter Capital

Lifecycle financing: Investor in all growth stages

We invest in innovative startups & scale-ups in Zuid-Holland, in all stages of the company's development, from proof-of-concept to international expansion. We are willing to invest early and are not afraid to finance longer trajectories. Our companies make the world cleaner, smarter, and healthier.

Innovation Quar ter Capital

InnovationQuarter Capital (€143 million) invests in innovative startups & scale-ups with high technological risk that require patient capital. We focus on the innovative sectors in Zuid-Holland, with special attention to Energy & Chemistry, Digital Technology & Cybersecurity, High Tech Systems and Materials & Aerospace, Maritime & Harbour, Horticulture & Food and Life Sciences & Health. We operate founder-friendly and provide (convertible) loans and/ or equity.

At InnovationQuarter, societal impact and healthy financial returns go hand in hand.

Innovation Quarter Capital

An InnovationQuarter Capital investment offers

• A professional, experienced team

• Close collaboration in-house on international growth and innovation

• Long-term financial support

• Venture Development

• Flexible financing instruments up to €5 million

• A wide network of investors to maximize coand follow-on financing

• Insights on the capital market

Innovation Quarter Capital

InnovationQuarter Capital investments

are done in companies active in the following sectors:

Digital Technology & Cybersecurity

Energy & Chemistry

Life Sciences & Health

Maritime & Port

Hightech Systems & Aerospace

Horticulture & Food

• In companies with high technological risk

• In companies with a strong and committed management team

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

• In companies that create (social) impact in the region

• Preferably together with reputable private co-investors

• As a minority shareholder

Proof-of-concept fund UNIIQ (€ 47 million) helps entrepreneurs in Zuid-Holland to bring unique innovations to the market faster. We provide academic spin-offs and innovative startups with the seed capital to realize their plans and bridge the most risky phase from concept to promising company. Over 62% of UNIIQ startups have already attracted follow-up financing, together over € 125 million.

UNIIQ is powered by Erasmus MC, TU Delft, Leiden University, Erasmus University, InnovationQuarter, the European Union, the Province of Zuid-Holland, the Ministry of Economic Affairs and Climate, Netherlands Enterprise Agency (RVO), and the municipalities of Rotterdam, The Hague, and Leiden.

A UNIIQ investment offers

• Up to €350,000 in risk capital in the proof-of-concept phase

• Disbursement in tranches upon achieving specific milestones

• Financing in a convertible loan that:

• also gives the entrepreneur the conversion right

• either matures after 3 years

• or converts at the valuation of a follow-on investor minus a reasonable discount

• can be repaid at any time at any time without fines

• Support with financial and strategic issues by an experienced investment team

• A large network of over 250 reputable investors and financiers for follow-on funding

UNIIQ investments

Meet at least the following criteria:

• The capital is used for the technical and market validation of an innovation

• There is a strong and ambitious team that takes entrepreneurial risk themselves

• A period of at least 12 months is financed. After that, attracting follow-up financing (or cash-flow positive growth) is feasible

• The innovation offers unique competitive advantages that form the basis for sustainable growth opportunities

• The company has the relevant intellectual property rights

• The company is located in Zuid-Holland

• The investment is an impact investment

• The investment is made with the intention of achieving positive and measurable results for a cleaner, smarter, and healthier world, in addition to financial results

• There is no project financing involved

ENERGIIQ (€ 35 million) offers many years of experience in energy transition and venture capital. We know how to make a small company big. Our fund helps innovative technologies (in energy storage and conversion) grow that make sustainable solutions cheaper or more efficient than fossil fuels. With these breakthrough technologies - on smart materials, AI and data - we achieve the highest output at the lowest cost. This way we achieve real acceleration in the energy transition.

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

An ENERGIIQ investment offers:

• Up to €5 million in risk capital

• Hardware investments as well as software

• Intensive collaboration with our portfolio companies (including networking, strategy, and management development)

• A large network of more than 250 reputable co-investors and knowledge partners

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

• Professional institutionalized decision-making

ENERGIIQ investments

Meet at least the following criteria:

• The capital is used for testing and commercializing the energy innovation

• 50% of the total investment requirement is provided by reputable private co-investors

• There is a convincing, elaborated business plan and strong management

• The company has the relevant intellectual property rights

• The intended, substantiated CO2 reduction is reflected in Zuid-Holland or the company is located in Zuid-Holland

ENERGIIQ Logotype 10.08.2017

The investment fund of the Municipality of Rotterdam (€100 million) finances innovative companies and large sustainable projects that can contribute to the energy transition and circular economy. With the fund, we aim to reduce CO2 emissions, improve air quality, and reduce the use of raw materials. Our team offers many years of experience in the energy transition and deep investment experience.

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

An ETF-R investment offers:

• Investments ranging from €1 to €10 million per company or project

• Capital-intensive scale-up investments focused on energy transition and circularity in a broad sense

• A hands-on investor with deep investment experience and > 65 years of experience in energy transition

• A large network of over 250 reputable co-investors and (knowledge) partners

• Various financing instruments (subordinated loans, debt, guarantees, and equity)

ETF-R investments:

Meet at least the following conditions:

• The activities have sufficient societal impact within the Rotterdam area and are in line with the policy of the Municipality

• The business is in a scaling-up phase (potentially also capital-intensive, new technologies, and pilot plants)

• There must be a positive business case underlying an investor-ready business or project plan

• There must be a (separate) legal entity

Portfolio Innovation Quar ter Capital

IMSystems (Delft)

Product: Archimedes Drive

Sector: Hightech

€ 4 million from UNIIQ & InnovationQuarter Capital

It is the 'heart' of the robot, the power transmission. Robotics are developing rapidly and yet the transmission systems - the parts that make the robot move - have hardly changed in the last 50 years. This has made robots relatively heavy, complex, uncontrollable, and expensive. With the Archimedes Drive, IMSystems has introduced the first major breakthrough in transmission systems in half a century. The 'heart' of the robot now functions much more precisely, allowing power to be transmitted much more efficiently, in a more compact format and at lower cost. This makes the movements of robots more precise, powerful, and controllable. With this drive, a production robot can deliver up to 40% more work in the same amount of time. IMSystems aims to disrupt the automation industry with their patented Archimedes Drive.

Portfolio

EXASUN (The Hague)

• Product: Cost reduction of solar energy through high-efficiency, long-lasting solar panels

Sector: Circular

Founded in 2012, Exasun began producing Back-Contact-on-Glass solar panels in The Hague in 2016 after four years of research and development. By automating the production of its smaller solar panels, it is possible to manufacture them in the Netherlands, thereby minimizing transport-related CO2 emissions. As the first company in the world to combine the best cell technology - Back-Contact cells - with special components for a very long lifespan, Exasun launched its first Back-Contacton-Glass solar panels on the market in 2016, with a world first. Thanks to their longer lifespan and higher yield, they have the lowest electricity costs (€ct/kWh).

Portfolio

Bi/ond (Delft)

• Product: Microchips that mimic human organs in a lifelike manner

• Sector: Life Sciences & Health

Bi/ond has developed a computer chip and platform on which biologists can place individual cells. Because the cells on the microchip receive oxygen and nutrients, it's as if they are in a human body. Thanks to Bi/ond's patented organ-on-a-chip technology, the chips can be optimized for various applications, including heart, lung, brain, and cancer tissue. Researchers use these functionalities to find the right medicine for a particular individual. The power of microelectronics, which makes Bi/ ond's product so unique, brings personalized medicine within reach.

Portfolio

Umincorp (Rotterdam)

• Product: Using magnetism, Umincorp recovers household waste plastics up to 10% more efficiently than conventional plastic sorters with 80% less CO2 emissions.

• Sector: Circulair

€15 million from ETF-R and others

Thanks to its innovative Magnetic Density Separation technology (MDS), Umincorp can better separate plastics from household waste, resulting in up to 10% better recovery than conventional plastic sorters and with 80% less CO2 emissions. With the investment, Umincorp is building a new rPET plant in Rotterdam, creating a closed materials cycle: from plastic to waste to raw material to plastic. Umincorp's activities result in a significant CO2 reduction of 30,000 tons of CO2 equivalents per year. The technology has been proven and offers every opportunity to truly shake up the recycling market.

Colofon @InnovationQuarter

innovationquarter.nl/investeren

UNIIQ.nl

ENERGIIQ.nl

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