A lot has happened in our region in the past two years. Some initiatives, like Flanders in Action, have been dropped by the new Flemish government (2014-19). Some government agencies have changed names, like the Agent-schap Ondernemen, which has been rechristened the Agentschap Innoveren en Ondernemen. State-controlled investment vehicle LRM has a general geographical focus on investments in the province of Limburg.
Most importantly though, is the fact that the venture capital industry is developing further and becoming more professional, even when compared with only two years ago. European private equity and venture capital raised in the past three years was 70% more than between the years 2010 and 2012. VC fundraising increased by 8% to €5.3bn ($6bn), the highest level since 2008. Early and later-stage focused funds particularly increased.
In order to facilitate access to venture capital, Flemish investment company PMV has recently concluded a strategic repositioning of the former plethora of investment products available to promising entrepreneurs in Flanders. Gone are the days when we besieged them with the likes of Tina, Vinnof, Kidsinvest, Biotech, Mezzanine, Culture and other funds. While aiming with good intentions at specific target groups, this profusion of brand names – often launched by beaming politicians – led only to confusion.
Henceforward, PMV is now addressing its entrepreneurs with the simple message that any good business idea in Flanders, supported by a good plan and a solid team, will be able to find financing, whether the idea comes from within or from other regions or countries. In order to achieve this, our expert investment analysts dispose of capital, loans and guarantees or a combination thereof. In this way, PMV can finance any company in Flanders, from the very start, through its growth and international development.
When we look at the capital investments per sector, the life sciences industry takes pride of place in our portfolio (51.4%). PMV started its direct investments in Flemish biotech as early as 2008 and has since developed into one of the most active investors in the sector. Its portfolio currently includes 18 companies in life sciences, ranging from emerging startups, such as Confo Therapeutics and -EtheRNA, to well-established, listed businesses, such as ArGen-X, Biocartis and Celyad.
A dedicated, specialised and complementary team actively manages the portfolio. Recent exits from companies, such as Cartagenia and Q-Biologicals, demonstrate the success of this approach. Recently PMV also took over from Gimv the management of Biotech Fund Flanders, making us now the largest investor in life sciences in Flanders.
So, the money is available. PMV sits on a total equity of €1bn. It also serves as coordinator for the European Fund for Strategic Investments in Flanders and can thus provide access to more capital than its own balance sheet. Overall we hold a portfolio of €528m – investments of €143m in 2015 alone – in the Flemish economy. Of this, €363m is in companies and €165m in real estate, infrastructure and green energy projects.
As a do-and-dare company, we take pride in shaping the future of the Flemish economy and in carrying out projects that contribute towards the welfare and wellbeing of people in Flanders.