COL data report 1st July 2020
COL impact report Government startup support during COVID-19
COL data report - 1st July 2020
PREFACE On April 29th, the COL (Corona Bridging Loan) program was officially opened for applications. This COL report gives an in-depth analysis of the applications until July 1st. The first part of the report is based on the information derived from the online portal. The reference date for this part of the report is July 23rd. The second part of the report gives an update on behalf of the ROMs on the most current situation. The COL portal will be open for applications until October 1st, so this report gives an interim overview. After all applications have been reviewed somewhere late autumn - Techleap.nl and the ROMs will publish a final data report.
Maurice van Tilburg
Director Capital, Techleap.nl “COVID-19 has hit the startup ecosystems around the world hard, causing substantial job losses, severe difficulty in raising funding and an inability to bring products to market. We saw all this and more when the pandemic first hit with waves of Dutch tech companies getting in touch looking for support during this time. To respond we surveyed over 400 companies from which we understood the need for bridge funding as well as structural incentives to reactivate VC investments. The survey data helped sizing the impact and reinforced the building of a support program with partners. This culminated in the COL program that was made available by the Ministry of Economic Affairs and Climate Policy providing â‚Ź300Mn for bridge funding through the ROMs. Today, we are happy that we can share together the benefits of the collective approach and the Techleap.nl portal: transparency on how this has worked and a lot of data showing the companies that have been supported, and why certain requests could not be supported. Of course, we regret that not all startups could be helped, as all of them are passionate entrepreneurs with a compelling journey and value. Somehow, I feel that it's always like a personal failure. At the same time, we are happy that already 600 companies have been supported so far. And we are grateful for the collaboration with the ROMs, supporting VC professionals and other partners. We have seen ROMs massively increasing resources and speed, improving when feedback came in, becoming increasingly transparent and remaining very professional and friendly when we would inquire regarding possible issues or cases. Thank you! 1
COL Impact Report
COL data report - 1st July 2020
Are we ready now? Is it perfect? No, these numbers show the transparency and drive to continue helping startups and improving the way this is done. I think with all the data this is the most effective way to monitor such support programs and ensure that ‘government money is well spent’. And, of course, now that the bridge funding is on its way, we need to continue working with our partners to reactivate structural equity financing by identifying the right incentives. As an indication we observed for the startups concerned that the estimated need for structural funding 9 months after the start would add up to €1.3 Bn.”
Rinke Zonneveld
Executive Director, InnovationQuarter
On behalf of the Regional Development Agencies
“Startups, scaleups and innovative SMEs are crucial for our economic competitiveness and future wellbeing. They invest a lot in new products that bring solutions for our societal challenges in the field of healthcare, sustainability, food and security. Because of their nature they are disproportionately hit by the COVID-19 crisis. I am extremely thankful that the Dutch government has taken the initiative to set up the COL (Corona Bridge Loan) program to help these companies. The Ministry of Economic Affairs and Climate Policy has given the responsibility for providing these loans to the ROMs (Regional Development Agencies). We have seen this as a great responsibility but also an honorable task to help hundreds and hundreds of innovative ventures to mitigate the negative impact of COVID-19 on their business. Despite the fact that the ROMs are, on a yearly basis, by far the most active investors in The Netherlands, executing the COL program was an unprecedented assignment for us to carry out. During over two months around 200 investment professionals in our organizations have reviewed over 1700 applications for a COL. Behind every application there are passionate entrepreneurs who truly believe in the potential of their company. So we were very much aware that our professional judgement call on each and every application couldn’t be made light-minded. In the final endabout, four out of ten applications have been accepted so far. As joint regional development agencies, we are grateful that we have been able to help so many innovative companies on behalf of the Ministry of Economic Affairs and Climate Policy.” 2
COL Impact Report
COL data report - 1st July 2020
3 startups coming out of the Covid-19 crisis thanks to the bridging loan “The COL funding came right on time for us. We applied so that we could create a financial buffer to take mitigating measures and get our progress up to speed again.” Dick van Deijck - CEO
Carbyon has developed a technology to capture CO2 from ambient air. This allows the energy industry to produce 100% circular and renewable fuels from renewable electricity. Their aim is to use their innovation to make renewable energy cheaper than fossil. Learn more about Carbyon HERE “Banks were not very willing to help… COL was the perfect instrument for our company.” Michel Smit - CEO
Energy Floors develops, sells and installs energy-generating floors for temporary and permanent installations. Their mission is to speed up the energy transition by creating awareness about renewable energy in exciting ways. Learn more about Energy Floors HERE.
“As we had to put both our projects on hold, we were not able to send invoices and we no longer had the ability to pay our suppliers. Getting this loan was our only chance to balance it out and survive.” William Janssen - CEO
Desolenator is the world’s first solar-thermal desalination technology that can be applied in a modular way. They harness solar power in a novel way, to purify even the toughest water types without the need for filters, chemicals or external energy. Their methodology and technology represent a new approach to the provisioning of high quality, low cost water in the most remote places. Learn more about Desolenator HERE.
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COL data report - 1st July 2020
INDEX PREFACE
1
EXECUTIVE SUMMARY
5
1. COL FUNDING: THE WHY, WHAT AND HOW
6
2. DATA INSIGHTS
8
INTRODUCTION
8
APPLICATIONS - GENERAL OVERVIEW
8
ASSESSMENT - GENERAL OVERVIEW
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3. APPLICATIONS: THE BREAKDOWN
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APPLICATIONS - WHO APPLIED
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ASSESSMENT - WHO GOT ACCEPTED OR DENIED
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4. ROM ANALYSIS
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NUMBER OF APPLICATIONS PER ROM
18
WAITING TIME
18
APPROVED APPLICATION
19
AVERAGE AND TOTAL APPROVED
20
PORTFOLIO COMPANIES
21
CONCLUSION
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4 COL Impact Report
COL data report - 1st July 2020
EXECUTIVE SUMMARY The COL was installed to help innovative companies, such as startups and scaleups, in need due to COVID-19. These companies had difficulty applying for “regular” SME government facilities because of how they operate. The COL, a €300M government facility of the Ministry of Economic Affairs and Climate Policy, executed by the ROMs, provides loans for these companies to bridge the COVID-19 crisis. From the start of the COL on the 29th of April until the 1st of July, around 1800 applications have been processed. The total requested funding amount for the coming 9 months is well over €630 million. The vast majority (74%) of the applicants requested a bridge loan amount in the €50.000-250.000 category, with a median of €240.000, to bridge these coming 9 months. Most applications were done by startups, around 59%, and scaleups made up for 23% of the applications. Based on portal core data, 600 applications (34%) have been fully approved and 1007 (57%) of the applications have been denied. And it took the ROMs, on average, around 1 month to decide on an application, and, if approved, to pay out the loan. As several cases after initial approval decision require time to be fully registered, legally confirmed and paid an actual forecast of the final approvals can be best made by zooming in on the ROM approval process. Based on that the anticipated number of approvals for these requests will move towards 700, implying a final expected approval rate of about 40%. And financially this would result in a forecasted amount of around €217 million in committed capital, co-financing not included. When looking at the data in this report that covers the first 2 months of the COL, it becomes clear that the COL is a government facility that provides necessary relief for innovative startups, scaleups and SMEs in the Netherlands battling negative effects of the COVID-19 crisis.
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COL data report - 1st July 2020
1. COL FUNDING: THE WHY, WHAT AND HOW When the official lockdown started in the Netherlands in March 2020, it was clear that this would have an enormous impact on the economy. Startups, innovative and fastgrowing companies, were put in a difficult position. The COVID-19 data report published by Techleap.nl at the end of March confirmed this. It also became clear that startups could not apply for “regular” SME government facilities because of the way startups operate. For example, innovative companies can have long development cycles where they do not have any revenue, which makes it difficult to satisfy the requirement of a 20% decrease in revenue. Other companies, for example, don’t have the assets needed for a bank loan such as a shop or warehouse. Therefore, a special facility was needed to cater for these companies, and to make sure their valuable innovations would not be lost. Two months later this resulted in the launch of the Corona-Overbruggingslening (“COL”), a government facility of the Ministry of Economic Affairs and Climate Policy that provides loans between €50.000 and €2.000.000. The COL initially started with €100 million but was soon raised to €250 million in May to €300 million a week later due to the large number of applications running through the portal. The COL is executed by the Regional Development Agencies (“ROMs”) in the Netherlands, who assess which companies would be eligible for a loan. On the 28th of April, a pilot group was granted access to the portal, and on the 29th the portal was officially launched.
BOM Horizon Oost NL InnovationQuarter LIOF NOM Impuls Zeeland ROM Regio Utrecht
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COL data report - 1st July 2020
Based on the location of the company, the applications are assigned to a ROM and depending on the amount of funding that is being applied for, the application would then fall in 1 out of 3 categories, each with its own pre-set terms. •€50.000 - €250.000 When approved, a bridge loan is offered against 3% interest. •€250.000 - €500.000 When approved, a bridge loan is offered against 3% interest. Furthermore, it is required that 25% of the funding amount is being beared by the shareholders, or, if not possible, by other parties against the same terms. •€500.000 - €2 million When approved, a convertible bridge loan is offered against 3% interest plus a yearly 2% premium. Furthermore, it is required that 25% of the funding amount is being beared by the shareholders, or, if not possible, by other parties against the same terms. The ROMs then reviewed the applications with the “4-eyes” principle, meaning that every application would be reviewed by at least two assessors, who would, dependent on the case, sometimes ask for additional information. When approved, the contract is signed and the money is transferred. Once this is done, the application is then stored in the ROMs systems for further follow-up with regard to the payment of interest and the repayment of the loan.
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COL data report - 1st July 2020
2. DATA INSIGHTS Introduction The COL portal contains all COL applications. These applications were done via the COVID-19 bridge financing portal. The data that is being asked ranges from total revenue to past investments, with a total of around 80 data fields that need to be filled in. For this report, only the applications that got approved by the portal are being taken into account. These are applications that got through the portal’s automated first selection procedure, which is a selection based on criteria that can be found here, this includes, for example, whether an application requests the minimum amount of funding of €50,000 that is required for the COL. This is around 93% of all applications.
2000 1800 1600 1400 1200 1000 800 600 400 200 0
28-apr 1-may 4-may 7-may 10-may 13-may 16-may 19-may 22-may 25-may 28-may 31-may 3-jun 6-jun 9-jun 12-jun 15-jun 18-jun 22-jun 25-jun 29-jun
Number of applications
This report is showing the first results of the data. We are working on a more extensive report which is due for autumn 2020, when the COL portal will be officially closed.
Figure 1: application submission
Applications - general overview Since the start of the COL until 1st of July 2020, a total of 1.766 companies applied for the COL bridging loan. They have applied for a total of € 634.990.729, with an average of € 359,564. We’ve observed that a lot of applications have been done in the first 2 weeks of the portal. Then the number of applications per day started to increase more steadily.
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COL data report - 1st July 2020
37; 2%
59; 3%
35; 2%
Softtech (platformen, SaaS, AI, e.a.) Overig
68; 4%
Cle anTech & Energie
88; 5%
Hightech syste me n 570; 32% 149; 9%
Medtech Ag ritech & Voed sel Life Sciences
159; 9%
Logistiek & Onderhoud 169; 10%
248; 14%
Finte ch BioBased
182; 10%
Chemie & Matrialen
Figure 2: share of applicants per sector
All applicants are categorized into 11 industries. Softtech is the biggest industry with 30%. Medtech, CleanTech & Energy and Hightech systems, who are in general more hardware-based, take up a total of 29%(1).
37; 2%
27; 1% 22; 1% 22; 1%
17; 1%
84; 5% 84; 5%
Noord- Holland Zuid-Hollan d Noord- Brab ant Utre cht
577; 33% 142; 8%
Gelderland Limburg
159; 9%
Overijssel Groninge n
232; 13%
363; 21%
Frieslan d Drenthe Flevoland
Figure 3: share of applicants per province
Out of 1.766 applications more than half (54%) are located in either Noord-Holland or South-Holland. Groningen, Friesland, Drenthe, Flevoland and Zeeland combined, only form 7% of the total applications.
1. The applicants could select up to 2 sectors. When applicants select 2 sectors, the primary sector is used. When with 2 sectors, there is a choice between “softtech” or “other”, the other sector is used.
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COL data report - 1st July 2020
224 ; 13%
234 ; 13%
€50.000-€250.000 €250.001-€500.000 €500.001-€2.000.000
1 308 ; 74%
Figure 4: applications categorized in the funding amount categories
The vast majority (74%) of the applicants requested a bridge loan amount in the €50.000-250.000 category, with a median of €240.000. This may be explained by the fact that the term for this bridge loan can be considered as the most favorable by applicants. However, to verify this, a more in-depth research is required.
Assessment - general overview Based on the region, the applying companies were appointed to the relevant ROM who would review their applications. The ROMs review whether the application meets all criteria, such as the “fresh money” requirement, the financing needs are a result of COVID-19, and what cost-reducing measures the company has already taken. The ROMs will also assess the quality and substantiation of the application and the sustainable future perspective of the company. Lastly, they will look at how urgent the application is. From the start of the COL until the 19th of May, these applications are assessed under these requirements. For applications between the 20th of May and the 1st of October, the applications are assessed via a tendering process in three timeframes: 20th of May - 1st of July, 1st of July - 16th of August and 16th of August - 1st of October. Next to the above requirements, the ROMs will also look at more qualitative criteria such as the number of FTEs and the importance of the innovation of that application. Overall, companies had to wait an average of 31 days for a final decision on their application. This is longer than previously anticipated, and had to do with the sheer amount of applications in the first few days. It’s important to note that this data is based on a monitoring system that was sometimes not updated daily due to time constraints. The assessment, therefore, could have taken place earlier and the applicant could have already been informed about the decision.
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COL data report - 1st July 2020
3%
1%
5% Reje cted Ap proved On hold 34% 57%
In process Open
Figure 5: status of applications
According to the portal, 600 applications (34%) have been approved and 1007 ( 57%) of the applications have been denied. The other 9% is mostly pending for additional documentation. This is the status in the dataset used. However, due to a time lag in reporting back into the system, the ROMs expect that the number of approved applicants will increase to around approved 700 applications, and thus an approval rate of about 40%.
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COL data report - 1st July 2020
3. APPLICATIONS: THE BREAKDOWN Applications - who applied for the COL loan? The applicants categorized their company themselves based on the following definitions: •Startup: young, innovative, often tech-enabled, company (<5 years) with 2+ FTE, aimed at fast growth (often high risk). •Scaleup: fast grower with 10-250 employees (growth of turnover and/or employees >60% past/future 5 years) •Innovative SME: innovative company with 1-250 employees in industrial research or experimental development (WBSO) focused on social and financial efficiency. SME without bank financing (SME for which bank financing is not possible)(2) : pre COVID-19 financial healthy SME. Company mainly financed with private capital. 1200 1049 1000 800 600 406 400 250 200
61
0 Startup
Scaleup
Innovative SME
SME without bank financing
Figure 6: applications per category
Most applications were done by startups, around 59%. Scaleups made up for 23% of the applications, with innovative SME’s and SME’s without bank financing being the smallest categories. 30 24
25 20 15 10 5
9
9
Innovative SME
SME without bank financing
5
0 Startup
Scaleup
Figure 7: average FTE per category in 2019 2. Under a number of conditions non-innovative SMEs are also eligible for the COL. They should, for example, not be able to get a BMKB or GO loan and can only submit an application > €250K, with the applicant or other financiers taking care of 25% of the required amount. They must also meet all other criteria and the ROMs will assess the company's future prospects and whether the company will be able to repay the bridge loan.
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COL data report - 1st July 2020
€ 2 500 000
€ 2 193 948
€ 2 000 000 € 1 541 433 € 1 500 000
€ 1 169 922
€ 1 000 000 € 500 000
€ 311 726
€Startup
Scaleup
Innovative SME
SME without bank financing
Figure 8: average revenue per category in 2019
A scaleup had around 24 FTE in its organization, a startup around 6 times less, with an average of 4 FTEs. The biggest differences can be found in the average revenue, with a scaleup averaging €2 million revenue and a median of € 923.387 and a startup just under €300K with a median of €51.182. As expected, the SMEs have higher revenues most probably due to their business models. Average runaway in months
Average runaway pre COVID-19 in months
Startups
2,6
11,2
Scaleups
3,3
12,8
Innovative SME
2,7
13,6
SME without bank financing
2,7
9,8
Applicants indicated that their normal runway pre-COVID19 is around 12 months. But now with COVID-19 in the picture, all runways shorten drastically around 4 times to around 3 months.
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COL data report - 1st July 2020
€ 1 316 809
€ 1 400 000 € 1 200 000 € 1 000 000 € 800 000
€ 636 216 € 608 644
€ 686 968
Averag e requested b ridge loan
€ 600 000 € 400 000
€ 335 787
Averag e e xpected structeral fund in g after 9 months
€ 358 041
€ 258 246 € 162 169
€ 200 000 €Startup
Scaleup
Innovative SME without SME bank financing
Figure 9: average financing
With these shorter runways in mind, startups requested €258K to bridge the next 9 months. A scaleup requested about €378K more, €636K for the next 9 months. They also indicated what their financing needs are after these 9 months. This need for structural funding after 9 months of all applications combined is €1.354.567.226, or €1.3 billion. Yes 19%
Yes No
No 81%
Figure 10: financial backing of applicants
Furthermore, 329 (19%) of all applications are backed by formal investors, this can be either an incubator, VC fund or a ROM. In addition, investor backed companies requested on average more funding (€542K) compared to non-investor backed companies (€311K).
Assessment - who got accepted or denied? When looking more in depth at the companies that have been approved or denied the COL loan, there are a few variables that are important to understand. \
3. Informal investors such as business angels have not been accounted for.
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COL data report - 1st July 2020
• Approved applications Startup
Ap proved
30%
Rejected
62%
Oth ers
8%
SME without Innovative SME bank financing
Scaleup
Ap proved
47%
Rejected
41%
Oth ers
12%
Ap proved
15%
Rejected
72%
Oth ers
13%
Ap proved
38%
Rejected
54%
Oth ers
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Figure 11: share of applicants per category
When looking at the approved companies, a few variables stand out. Scaleups get approved the most, with 47% of applications approved. This can be explained by the fact that the scaleups are businesses in a later stage that have more FTEs, more revenue and money invested, or even have an investor on board, which can indicate a proven innovation and a sustainable business model. 90% 78%
80%
69%
70%
60%
60%
52%
50%
48%
45%
35%
40% 30%
49%
42%
35%
29% 21%
17%
20% 10%
6%
5%
2%
1%
6%
<€50.000
€50.000 €250.000
€250.001 €500.001 €500.000 €2.000.000 Amount category
€2.000.001 €5.000.000
On hold
Rejected
Ap proved
On hold
Rejected
Ap proved
On hold
Rejected
Ap proved
On hold
Rejected
Ap proved
On hold
Rejected
Ap proved
On hold
Rejected
Ap proved
0%
€5.000.000+
Figure 12: Total investment per category
Generally the more that has been invested in a company, the higher the approval rate. This graph shows how much has been invested in a company, divided into different categories. It can be seen that companies with higher investment amount categories, are more likely to be approved. 15
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COL data report - 1st July 2020
100% 90% 80%
47%
70%
66%
60% 50% 40% 30%
53%
20%
34%
10% 0% Yes
No Rejected
Ap proved
Figure 13: Share of formal and informal investors of applicants
This, furthermore, correlates with that fact whether a formal investor has invested in a company or not. Investor backed applications have an average approval rate of 53%, versus a 34% average approval rate for applications who do not have a formal investor on board. 77% 69% 66%
66% 61% 55%
60%
54% 48% 47%
51%
48%
46%
45%
42% 39%
35%
34% 30%
29%
25% 19%
BioBased
Life Sc ienc es
Logistic s & Maint enanc e
Medtech
Others
Rejec ted
Softtech (pla tforms, SaaS, AI, e.a .)
Figure 14: application results per sector
Lastly, when it comes to sectors, Hightech, Medtech and Life Sciences are the top 3 sectors that have the highest approval percentages, between 46% and 48%.
16
On hold
5%
Approv ed
On hold
Rejec ted
Approv ed
On hold
Rejec ted
Approv ed
On hold
Rejec ted
Approv ed
Rejec ted
On hold
Hightec h systems
6% 3%
Approv ed
Rejec ted
On hold
Fintec h
Approv ed
Rejec ted
On hold
Chemistry CleanTech & & Energy Materials
Approv ed
Rejec ted
Approv ed
Rejec ted
Approv ed
On hold
Rejec ted
Approv ed
On hold
Rejec ted
Approv ed
Agritech & Food
4%
3%
9%
7%
4%
On hold
7%
6%
COL Impact Report
COL data report - 1st July 2020
â&#x20AC;˘ Denied applications When looking at the kind of companies that got denied a COL, there are also a few parameters that indicate which companies are not suitable for the COL. These are, firstly, the SMEs without bank financing, 72% of the applications were denied. This can be explained by the fact that the COL is mostly aimed at innovative companies. Non-innovative companies had to satisfy extra requirements to be eligible for the COL (see also under Chapter 2 - who applied). Secondly, companies in the FinTech sector have the highest rejection rate with 77%. This is explained by the fact that companies that qualify as financial institutions that are subject to financial supervision law, are not eligible for COL due to European regulations. As expected, companies with a high cash position get rejected more than companies with a low cash position. This has to do with the fact that the COL is meant for companies that are in trouble due to COVID-19. This is only not true for the smallest application amount category, where the cash position of approved companies is slightly higher than those who have been rejected. This might have to do with the fact that a lot of very early stage companies applied in this category, where a lower cash position might pose too much risk with regard to paying back the loan.
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4. ROMs ANALYSIS This chapter provides a more in-depth zoom into the ROM approval process. This ranges from how many applications each ROM had to process the first 2 months, to how many of their portfolio companies are among the COL applicants. The data in this chapter is primarily based on the central portal, yet in order to provide in depth forecast we have completed this with additional data provided by the ROMs separately. Where this complementary data is used to provide additional insights and forecast, we will explicitly label that information as such.
Number of applications per ROM Based on the province in which the company was based, the applications were distributed amongst the ROMs. The ROMs with the biggest number of applications are Noord-Holland, with one-third of all applications, and InnovationQuarter (Zuid-Holland), that accounted for 20%. BOM (Brabant) and OostNL (Overijssel and Gelderland) both took 13% of applications. This is due to where industries are located, with NoordHolland and Zuid-Holland having the biggest concentration of businesses. 22; 1%
17; 1%
84; 5% Innovatiefonds Noord-Holland
86; 5%
InnovationQuarter Z uid -Holland 159; 9%
BOM Noord-Brabant 577; 33%
OostNL ROM Utrecht
226; 13%
NOM LIOF Limburg
232; 13%
363; 20%
Horizon Flevoland Impuls Z eeland
Figure 15: Share of applicants per ROMs
Waiting time Impuls Zeeland and the NOM were the ones that had the shortest waiting time with an average of 19 and 17 days respectively. The longest waiting time was at Innovatiefonds Noord-Holland, with an average of 37,5 days. This difference is explained by the difference in amount of applications between these ROMs. Innovatiefonds NoordHolland had to process one-third of all COL applications, whereas Impuls Zeeland and the NOM only had to process 1,2% respectively 4,6% of the total COL applications. The reason why the approved applications took longer to decide, was mostly because of additional questions of the assessors that the applicants needed to answer. 18
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COL data report - 1st July 2020 43
45 40 35
34
35
35 32 29
30
30
30
Days
25 25
22
23
23 20
19
19
19
18
20 15
11 10 5
BOM Noord Brabant
Horizon Flevoland
Impuls Zeeland
Noord Holland
Innovation LIOF Limburg Quarter ZuidHolland
NOM
OostNL
Ap proved
Rejected
Ap proved
Rejected
Ap proved
Rejected
Ap proved
Rejected
Ap proved
Rejected
Ap proved
Rejected
Ap proved
Rejected
Ap proved
Rejected
Ap proved
Rejected
0
ROM Utrecht
Figure 16: Application waiting time per ROMs
Approved applications - ROMs data In order to understand actual forecast of approvals we have obtained additional information around approval percentages directly from the ROMs for this paragraph. From this data it can be seen that Impuls Zeeland en Horizon Flevoland, have the highest approval percentages, between 65% en 74%. This might be explained by the fact that there arenâ&#x20AC;&#x2122;t that many companies in that region and the ROMs are more familiar with the applicants. When we leave these ROMs out of the equation, there are no significant differences between the other ROMs, from Noord-Holland with 36,7% to LIOF and the NOM with 45,5%. It seems that the more applications the ROMs have, the lower the approval rate. 80, 0%
73,7%
70,0%
64,7%
60,0% 50,0%
45,5%
40,0%
45,5% 41,7%
38,9%
39,4%
36,7%
37,0%
30, 0% 20, 0% 10,0% 0, 0% Impuls Zeeland
Horizon Flevoland
ROM Utrecht
NOM
BOM Noord- LIOF Limburg Brabant
OostNL
Innovatie Innovation fond s Noord Quarter Zuid-Holland Holland
Figure 17: Share of approval per ROMs 19
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COL data report - 1st July 2020
Average and total approved - ROMs data The ROMs have furthermore forecasted their average and total committed application capital. The average approved application amount varies from €194K for Rom Regio Utrecht to the average of €361K for InnovationQuarter. This excludes any co-financing. These differences might be explained by the sectors that are present in that region, with InnovationQuarter mostly focusing on high tech companies that require a lot of investments. € 450 000 € 386 171
€ 400 000 € 350 000
€ 306 976
€ 301 084 € 300 000
€ 256 542
€ 250 634 € 250 000
€ 208 328
€ 200 000
€ 226 244 € 201 042
€ 194 662
€ 150 000 € 100 000 € 50 000 €Impuls Zee land
Horizon ROM Utrecht Flevoland
NOM
BOM Noord- LIOF Limb urg Brabant
OostNL
Innovatie fond s NoordHolland
Innovation Quarter ZuidHolland
Figure 18: Average forecasted committed application capital
InnovationQuarter Z uid -Holland
€ 51 360 798
Innovatiefonds Noord-Holland
€ 37 455 093
OostNL LIOF Limburg
€ 24 558 045 € 7 639 599
BOM Noord-Brabant NOM
€ 26 495 391 € 8 371 033
ROM Utrecht Horizon Flevoland Impuls Z eeland €-
€ 12 653 009 € 1 666 621 € 3 508 875 € 10 000 000 € 20 000 000 € 30 000 000 € 40 000 000 € 50 000 000 € 60 000 000
Figure 19: committed total amount per ROMs
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COL data report - 1st July 2020
Furthermore, the ROMs predict that a total around â&#x201A;Ź217 million has been committed to approved applications submitted in the first 2 months when the COL was live. This does not include co-financing.
Portfolio companies - ROMs data Portfolio companies are companies that a ROM has previously financed. WIth regard to the willingness to provide transparency, the ROMs have checked whether they have any portfolio companies among their applicants. Out of all applications, the ROMs indicate that 178 (10%) was from portfolio companies of the ROMs. At Impuls Zeeland, Horizon Flevoland, LIOF and the NOM this percentage was higher, around 25%. For Noord-Holland and InnovationQuarter, this percentage was lower. 178 ; 10%
Portfolio companies Not portfolio companies 1 588 ; 90%
Figure 20: Share of companies within the ROMs portfolio
The percentages of approved applications of portfolio companies is quite high, and varies between 46,3% for OostNL and 100% for Zeeland en Flevoland. All others are between 65 en 75%. When set against all approved applications, 117 applications (19,5%) are a portfolio company. Ap proved applications of p ortfolio comp anies
60%
65%
Ap proved applications of n ot portfolio companies
56%
64% 78%
79% 91%
40%
35%
44%
36% 22%
21% 9%
IMPULS ZEELAND
HORIZON FLEVOLAND
NOM
87%
BOM NOORDBRABANT
LIOF LIMBURG
OOSTNL
13%
INNOVATIE INNOVATION FONDS QUARTER NOORDZUIDHOLLAND HOLLAND
Figure 21: Share of approved of (non)portfolio companies 21
COL Impact Report
COL data report - 1st July 2020
This means that 1 out of 5 approved COL applications is a ROM portfolio company. This might be explained by the fact that the ROMs are involved in over 50% of all VC deals in the Netherlands on a yearly basis. When looking at the total amount of loans that has been paid out to approved applications, the percentage for portfolio companies varies between 6 and 7% for respectively Noord-Holland and Innovation Quarter, and 56,3% for LIOF. Flevoland has not yet finished all assessments, so is therefore not included in this graph. 60,0%
56,3%
50,0%
40,0%
30, 0%
37,1%
27,7%
27,1% 21,8%
20, 0%
10,0%
7,0%
6,0%
0, 0% Impuls Z eeland
NOM
BOM NoordBrabant
LIOF Limburg
OostNL
Innovatie fond s Innovation Noord -Holland Quarter ZuidHolland
Figure 22: Total loan amount paid out per ROMs
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COL Impact Report
COL data report - 1st July 2020
CONCLUSION When looking at the data in this report it becomes clear that the COL is a government facility that provides the necessary relief for innovative startups, scaleups and SMEs in the Netherlands battling the negative effects of the COVID19 crisis. Weâ&#x20AC;&#x2122;re sharing 4 observations on why the COL reaches key areas of innovation and makes impact. First, this reflects in the sectors that drive innovation and that represent the largest chunk in the applications, such as Medtech, CleanTech & Energy, Hightech systems, Agritech & Food and Softtech, who together take up a total of 85% of all applications. Furthermore, the sectors Hightech, Medtech and Life Sciences are the top 3 sectors that have the highest approval rates. Second, this can also be derived from the fact that most companies applied from regions with large innovation hubs such as Noord-Holland, Zuid-Holland and NoordBrabant. Third, a large part of the total of 600 businesses that have been approved for a COL loan are businesses that are already in a scaleup phase and/or have an investor on board, which indicates a proven innovation and a sustainable business model. And lastly, almost all applications indicate that due to COVID19, runways are 4 times shorter than normal, which is problematic for businesses that by nature donâ&#x20AC;&#x2122;t have much meat on the bones to begin with. This also correlates with the fact that approved applications generally have a lower cash position. Currently the ROMs still continue to assess COL applications until the 1st of October. This works via the tender-system as described in chapter 2. But even when the COL is finished, the applicants indicated a financing need after these 9 months worth a total of â&#x201A;Ź1.3 billion, which requires an approach that unlocks structural funding and that we as Techleap.nl keep working on together with our partners to make sure these important innovations can continue to grow in the Netherlands.
NB. This report is showing the first results of the data and does not include the full reporting of the ROMs on these applications. We are working on a more extensive report which is due in the autumn of 2020, when the COL is officially finished.
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COL Impact Report
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