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A transformative investor on a mission
to improve urban quality of life
December 2021 - Confidential
2.Disclaimer
UI Ventures (“UIV”) is not a registered investment adviser. Information presented is not intended to be an offer of solicitation for the sale or purchase of any securities. Investments involve risk and are not guaranteed. Any projections contained in this presentation are based on a variety of estimates and assumptions. There can be no assurance that the assumptions made in connection with the projections will prove accurate, and actual results may differ materially. This disclaimer applies to this presentation and the oral or written comments of any person presenting it.
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3.3
Executive Summary
Market Opportunity
Team
Unique Value Added
Impact Framework
Fund Parameters
APPENDIX Pipeline Examples
Agenda
4.Executive
Summary
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5.Executive Summary
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We are an impact venture capital investor on a mission to improve urban quality of life in Europe by investing for profit-with-purpose in entrepreneurs supporting the sustainable transformation of cities.
We will launch our inaugural UIV Fund I in February 2022, targeting a final close of 25 M EUR within 18 months.
Our geographical focus is The Netherlands and Germany. Max. 35% can be allocated to the rest of Europe and USA.
We are well embedded in the urban tech hubs in the Netherlands and Germany, as well as in various European networks to ensure access to superior deal flow.
Our core investment themes are Decarbonization & Circularity. Max 20% can be allocated to the other urban investment themes.
We target a 15% net IRR and a full alignment to the UN Sustainable Development Goals.
6.Our Sustainable City Vision
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7.Our Core Themes
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City Logistics
Energy Efficiency
Energy Transition
DECARBONIZATION
CIRCULARITY
Waste
Water
Materials
8.Our Regional Focus
focus on The Netherlands and Germany
rest of Europe/ USA max. 35%
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9.Market
Opportunity
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10.We target the €50 bn annual funding gap for sustainable transformation of cities and the €1 bn annual early-stage opportunity to support entrepreneurs seeking to apply technology to urban infrastructure*
3/4of the EU populationlive in urban areas
account for about80%of energy use
and generate up to85%of Europe’s GDP
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Engines of the European economy and act as catalysts for creativity and innovation throughout the region. Places where persistent problems, such as unemployment, urban segregation and poverty, are at their most severe.
Urban areas are:
Our growing ecosystem of urban technology entrepreneurs, cities and corporate partners effectively supports sustainable cities transformation.
* Urban Impact Ventures own estimates for Europe, based on data from Eurostat, OECD 2017: World Bank Group 2018, and McKinsey Energy Insights 2019
11.Mega trends impacting urban development require dedicated and inclusive urban tech venture capital
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Shifting
Economic Power
Technologic Breakthrough
Climate Change & Resource Scarcity
Demographic &Social Change
Rapid Urbanization
E7 GDP double the size of G7 by 2040 75% faster growth in EM economies EM economies 50% of global by 2025
59% increase in food demand by 2050 WEF calls water crisis the #1 global risk 48% think business should be a force for good $22bn SRI AuM today
90% of the world data created in the last 2 years 1 trillion objects connected 66% of the world is connected at any time
Global population towards 10 bn by 2050 Population is aging 90% of under 25s live in EM economies 2020 pandemic reshaping urban design parameters
1.5 mn people move to cities every week 60% live in cities by 2030, from 55% today 61% of global GDP created by 750 cities 2020 pandemic accelerating urban digital infrastructure
Source: Blackrock, Bloomberg, Deloitte, IFTF, McKinsey, PwC, WEF, World bank
12.Now is the time to ‘bend the curve’ towards
more sustainable cities
Cities are at the center of global sustainability agreements such as UN Sustainable Developments Goals, Paris Climate Agreement, and New Urban Agenda.
To “bend the curve” towards greener, more inclusive urban development, additional investments must be unlocked now.
Over 75% of the EU population lives in cities, generating up to 85 % of GDP and acting as catalysts for innovation.
Cities use ~80% of EU energy and exhibit severe persistent problems, such as unemployment, urban segregation and poverty.
Source: Colenbrander & Dasgupta 2018
Source: Worldbank, based on UN estimates, global urbanization
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13.Team and
Track Record
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Team
Christiaan Leussink
Nadia Soultanova
Rumen Trilev
Simon Rikmenspoel
Hans van Houwelingen
Korstiaan Zandvliet
Ivo Evgeniev
Hristo Valev
Managing Partner
Over 20 years of investment experience and leadership roles in ACTIAM, ING Group, NN Group, Telelink and Symbid.
Partner
Founder of Symbid, one of the world's first equity crowdfunding platforms, reviewer at Horizon 2020 on behalf of the European Commission. Serial entrepreneur and angel investor.
Partner
Over 14 years of private equity experience in the CEE region, focused on clean energy, energy efficiency and technology.
Partner, General Counsel, Compliance
Over 15 years of corporate and investment related legal and compliance experience with ACTIAM, NN Group, PGGM, Dutch Treasury, Philips, NXP, Deloitte.
Head of Urban Network & LP Relations
Former Head of Investment and Business Development for the city of Sofia, former Director Digitalization and Innovation at Sofia Municipality.
Investment Associate Partner
Former Chief Market Strategist/M&A at Telelink Bulgaria, a leading CEE digital transformation enabling company.
Entrepreneur in Residence
Successful serial entrepreneur in
staffing, health services, real estate and broader technology industries.
Partner
Over 20 years of private equity and entrepreneurial experience in technology, mobility, real estate development, renewable energy and agriculture. Former investment banker with Deutsche Bank and UBS.
15.Advisors
Claudia Marcusson
Marina Niforos
Ellen Van Bueren
Raymond de Kuiper
Rafal Andrzejewski
Strategy and innovation lead for SC ventures with 20 years of financial industry experience in the U.S., U.K., Germany, The Netherlands and Singapore and a background in venture capital, emerging technologies and project management.
Strategist and advisor to governments and business leaders on innovation, institutional relations and public policy; and founder of Logos Global Advisors and a director at Seche Environment and of the Hellenic Corporation of Assets and Participations (HCAP).
Professor of Urban Development Management at the Faculty of Architecture and the Built Environment at Delft University of Technology and Principal Investigator at the Amsterdam Institute for Advanced Metropolitan Solutions
Consultant at MunichRE Markets - Epidemic Risk Solutions. Until 2019 Raymond was Chief Investment Officer of ACTIAM NV, a leading sustainable and impact asset manager with €65 billion of Assets under Management.
CEE representative of the Asian based M&A advisory firm TFC Capital and CEE Equity Partner for a Hong Kong private equity firm. Former partner at Amrop.
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16.Unique
Value Added
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17.Unique Value Added
We are well embedded in the major urban tech hubs in the Netherlands and Germany to ensure superior deal-sourcing across the sustainable urban transformation early-stage landscape.
Network
Team
Impact
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International, diverse team curated around investing, entrepreneurship and sustainable city transformation. Our team members and advisors have a profound collective experience in the broad investment industry, venture capital, early-stage technology companies and sustainable urban development.
Using our in-house developed framework, we target positive environmental and/or social outcomes in alignment with the UN Sustainable Development Goals. A max. 50% malus on carried interest of the GP is applied if outcome targets are not met.
18.Our 3 investment themes cover
a broad set of investment opportunities
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Our Investment Universe is based
on aggregated data from a variety of
databases with a focus on the Netherlands and Germany.
Urban Impact Ventures is building its own proprietary database in partnership with Fundsup to provide for our top-down approach.
We built an extensive network of
co-investors, corporates, accelerators and cities, supporting additional dealflow and portfolio company development.
Invest 0.50M-2.5M EUR in approx. 16-20 portfolio companies diversified across core themes and regions.
19.Impact
Framework
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20.Our investment themes’ mapping to the relevant UN SDGs’ targets
It is our strong belief that the UN Sustainability Agenda 2030 sets the right priorities to catalyse
the much-needed transformation of the World, and in particular Europe, the regional focus of our investment strategy.
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21.Achieve measurable positive contributions to 5 SDGs that are core to the sustainable transformation of cities and the SDGs related to climate action and decent work and economic growth.
Screen for material negative outcomes resulting from the investees’ activities across all of the 17 SDGs and support the transition towards an overall net positive change for the stakeholders of the impact.
Our impact management approach is in accordance with the latest developing standards for impact investing
Impact Thesis (Theory of Change)
Fund-level Impact Goals
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22.And delivers on our mission to improve urban quality of life
Each portfolio company has pre-set impact targets corresponding to one or more of the 5 Core SDGs. Progress on the impact targets is measured annually through an individual Core Impact Rating (from 0 to 10).
Ratings are adjusted for achievements on additional targets set with respect to the 2 SDGs related to climate action and decent work conditions, as well as for targets on reducing potential material negative impact on any of the 17 SDGs.
All individual Impact Ratings are aggregated on Fund level. The resulting Fund (Portfolio) Impact Rating is reported annually.
If the Fund Impact Rating at Exit is below the threshold of 7.5 (out of 10), a maximum of 50% malus on the carried interest of UIV is applied.
Impact measurement framework
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Impact integration in the investment process
23.Fund
Parameters
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We target 25 M EUR to invest in 16-20 portfolio companies, supporting entrepreneurs seeking to apply technology to sustainable city transformation (~ 25% reserved for follow-up investments).
Fund Manager: Dutch - under AIFM Light regime
Fund Domiciliation: Dutch Cooperative U.A. under EuVECA regime
Region: NL/DE with a max. 35% for rest of EEA/UK/CH/USA
Scope: late seed, (pre-) series A
Fund Term: 10 +1 +1 years with an investment horizon of 4 years
Min Ticket Size: 250K EUR
Investment themes: Decarbonization, Circularity, Liveability (max. 20%)
First close: February 2022
Final close: max. 18 months after 1st close
Fund Characteristics
Subscription fee: once 2% over commitment at initial subscription payment
Management fee: annual 2% (commitment based; > 6th year investment based),Operating cost allocation capped at 0.2% annual
Profit Sharing: 20%, (with 6% hurdle, and max 50% malus if impact targets are not met)
Target IRR: 15% net of recurring fees and profit sharing
25.Fund economics
We target net 15% IRR for LPs, with at least a net multiple of 2.1, based on a MOIC of 2.6.
We will initially invest in at least 16-20 companies, with follow-up investments in ~4 companies.
* One company can receive multiple investments (i.e., 20 investments may relate to 16-18 portfolio companies)
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26.Pipeline
Examples
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27.General Information
UIV follows a proprietarily developed approach for selection of investment opportunities. The approach utilizes a tool for screening and scoring the business potential of an opportunity (UIV Business Pentagon) and a tool for preliminary assessing of the impact potential (UIV Impact Pentagon).
Only opportunities scoring on average ≥ 1.5 on both Pentagons could enter the investable universe of UIV and further be analyzed and presented to the Investment Committee for a ‘Green Light’ approval.
Screening and selection of
investment opportunities
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28.Impact Characteristics
20 opportunities screened and filtered with scores passing the Pentagon thresholds:
* Includes other sustainable UrbanTech opportunities with mostly environmental impact characteristics (e.g. sustainable lifestyle; impact-enabling activities; etc.)
Current UIV Investable Universe
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29.Showcases
A Dutch one-stop shop platform for energy conversion of residential buildings.
A German patent-holding producer of bio-compostable plastics from agricultural residues.
A Spanish producer of smart and biodegradable water filters for household use.
A Swiss provider of car-attachable sensors for collection and analysis of data on urban life quality.
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A Dutch smart warehousing and decarbonizing the last-mile-delivery solution.
A Dutch patent-holding project and technology developer for cargo and passenger low-carbon high-efficiency hyperloop transportation systems.
A US-based company providing platform for smart and sustainability-enhancing urban mobility services to cities in Europe and the USA.
A German producer of edible cutlery from cocoa shell leftovers, replacing the single-use plastics.
30.Nadia Soultanova
Head of urban network and LP support
ns@uiventures.com
+359 896 160 104
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