Re-inventing Innovation 2013 Yearbook Highlights & Our Five Point Plan to boost investment Yasser El-Ansary Chief Executive, AVCAL Please adhere to disclaimer on final slide
A fork in the road Time for decision AND Time for action You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before. Rahm Emanuel, 2009 2
Highlights from 2013 AVCAL Yearbook 3
Venture capital fundraising 400 Fundraising by Australian VC funds by fiscal year 15 300 12 A$m 200 9 6 No. of funds 100 3 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Amount raised (A$m) No. of funds 0 Source: AVCAL 4
Sources of commitments 250 Venture capital 200 A$m 150 100 50 0 FY2010 FY2011 FY2012 FY2013 Private individuals Public sector Other Source: AVCAL Corporate investors Super funds (retail, industry, self-managed) Unknown 5
VC investment FY2013 15 firms 69 companies 124 investments $111m invested Source: AVCAL 6
Venture capital investment Investments by Australian VC funds by fiscal year 240 240 A$m 160 80 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 160 80 0 No. of investments/no. of companies Amount invested (A$m) No. of investments No. of companies Source: AVCAL 7
Biotech and ICT investment FY2009-FY2013 160 140 120 100 A$m 80 60 40 20 ICT Biotech 0 FY2009 FY2010 FY2011 FY2012 FY2013 8
Distribution of VC investments by state FY2009 to FY2013 A$m No. of companies VIC 173.7 106 NSW 139.8 85 QLD 81.0 39 SA 22.1 23 WA 19.1 16 Other 7.4 9 By company headquarters Source: AVCAL 9
Venture capital divestment Divestments by Australian VC funds by fiscal year A$m 150 100 50 0 0 FY2009 FY2010 FY2011 FY2012 FY2013 Divestment at cost (A$m) No. of divestments No. of companies 40 30 20 10 No. of divestments/no. of companies Source: AVCAL 10
Distribution of divestments FY2013 Venture capital 11% Life sciences 21% 42% Computer and consumer electronics Business and industrial products 26% Other Based on number of companies Source: AVCAL 11
It hasn t been a great year but Other economies are doing it tough too GFC accelerated flight from risk Policy and regulatory changes New government, new ideas. 12
The outlook for 2014 and beyond 13
Outlook VC: fundraising challenges weighing against a high-quality deal pipeline Long-term horizon on innovation policy required Crisis in manufacturing sector structural change within our economy Competitiveness and Innovation Taskforce 14
Five Point Plan to boost innovation investment 1. Re-commit to Innovation Investment Fund and new Translational Biotech Fund 2. Change Significant Investor Visa Program rules 15
Five Point Plan to boost innovation investment 3. Fix tax laws R&D credits VCLP and ESVCLP reforms Employee share schemes Patent box regime 16
Five Point Plan to boost innovation investment 4. Tighten commercial nexus between government research spend and end-result 5. Glamorise innovation. 17
Questions Contact: E: ceo@avcal.com.au W: avcal.com.au T: +61 2 8243 7000 AVCAL disclaimer Information provided by AVCAL does not constitute personal securities recommendations or investment advice; is not intended to induce any person to enter into securities transactions; should not be relied upon as professional financial advice; is not intended to be a substitute for advice from a qualified financial adviser. AVCAL does not warrant, guarantee or represent the completeness or accuracy of any information provided by AVCAL and does not assume or accept any liability or responsibility for: The accuracy of any information provided, whether from the passing of time or otherwise; any errors or omissions in any information provided; any loss or damage suffered in any way by any person relying on any information provided; any computer viruses or other contamination inadvertently passed on. Before relying on any AVCAL material, you should independently verify its accuracy, currency, completeness and relevance for your purposes, and should obtain any proper professional advice. In particular, you should seek independent professional advice before making any investment or business decisions. AVCAL disclaims, to the extent permitted by law, all liability for all claims, losses, expenses, damages, and costs you may incur as a result of or associated with the use of our information for any reason whatsoever. AVCAL assumes no liability for the actions of its members or any other person referred to us. Any links to other web sites or other contact details do not constitute endorsement of any materials, organisation, product or service. 18