1. Italian Private Equity and Venture Capital Association Il mercato del seed e venture capital in Italia Pavia, 27 th May 2002 Anna Gervasoni

2. Investment activity by number, companies and amount - 26 %A.I.F.I.

3. 2001: % stage distribution of investments A.I.F.I.

4. 2001: % distribution of investments by number of employees A.I.F.I. 89%

5. 2001: Geographical distribution of investments A.I.F.I.

6. 2001: Target companies distribution by region A.I.F.I.

7. 2000 –2001: Divestment distribution A.I.F.I.

8. Fund raising activity (Euro mln)* A.I.F.I. * Excluding Pan-European funds

9. 2001: Geographic distribution of funds raised on the market A.I.F.I.

10. Focus: Early stage High Tech

11. Trend - Number of Seed and Start up investors A.I.F.I.

12. Trend - Seed and Start up investments by number and amount A.I.F.I.

13. 2001 – Initial rounds vs. Follow on by number and amount A.I.F.I.

14. Trend - Average invested amount in Early stage (Euro mln) A.I.F.I.

15. Trend - High tech investment activity by number, companies and amount A.I.F.I. N/A + 51%

16. 2001: Stage distribution of high tech investments A.I.F.I.

17. A.I.F.I. Trend - % of amount and number of investments in high tech companies

18. Trend – Investment activity in high tech companies by stage (number) A.I.F.I.

19. Trend – Investment activity in high tech companies by stage (Euro mln) A.I.F.I.

20. 2001 – Seed and Start up investments by sector (Euro mln) A.I.F.I.

21. 2001 – Seed and Start up investments by number A.I.F.I.

22. 2001 - Number of Early stage investments by type of investors A.I.F.I.

23. Trend – Early stage investments by type of investors (% number) A.I.F.I.

24. Evolution of investments (number) in some specific sectors A.I.F.I.

25. Sectoral distribution of Early stage deals (by number) A.I.F.I.

26. 2001: Sectoral distribution of high tech investments by number (%) A.I.F.I.

27. 2001: Geographical distribution of high tech investments (%) A.I.F.I.

28. A.I.F.I.

29. Italy: Regional Early stage investments distribution by number A.I.F.I.

30. Italy: Regional high tech investments distribution by number A.I.F.I.

31. Focus: The incubation system

32. The sample The total sample was made up of 57 players operating on the Italian market subdivided as follows: 37 incubators linked to Business Innovation Centres (BIC); 15 incubators located in Scientific and Technological Parks; 5 university incubators. Data and information were collected by a three sections questionnaire sent to the sample players On the total number of active incubators, the response ratio was 86%, representing 38 players on 44. A.I.F.I.

33. The research evidence The whole players aim to the promotion of the economic and cultural environment of the territory in which they operate. On an aggregate level the sample shows the following figures: over 150.000 m 2 of available areas for incubation activities; about 1.000 stations available for new initiatives; about 200 active employees within incubators; about 1.180 incubated firms on Dec. 2001; 500 new firms incubated per annum, on average. A.I.F.I.

34. The research evidence (cont’) On a geographical level the survey evidences the following figures: 76% of players operates exclusively in their own region; 11% of the total sample is active on a national level; 13% carry out incubation activity even outside Italy. Referring to geographical localization, the sample is subdivided as follows: 54% of incubators is located in Northern Italy; 14% is in the Centre; 32% is located in the South. A.I.F.I.

35. The figures CharacteristicsBICPST Universiti es Total sample Grand total Total available areas (m 2 ) 130.00019.0002.500151.500175.421 Total number of employees for incubation activity 147309186218 Total number of available stations 630319469951.152 Average number of hosted firms per annum 4316721519610 Total number of hosted firms at 31-12- 2001 876247561.1791.406 A.I.F.I.

36. CharacteristicsBICPST Universiti es Total sample Grand total Average available area (m 2 ) 5.0002.3756252.667 Total number of employees for incubation activity 5,73,82,33,9 Average number of employees per incubator 24401225 Average number of available stations per incubator 3,72,222,6 Average number of incubation years* 4,332,74 Survival ratio90%94%100%95% The figures (cont’) * average of maximum number of yearsA.I.F.I.

37. A.I.F.I. achievements A.I.F.I. standard Information Memorandum “Guidelines” for closed-end funds reserved to qualified investors Bank of Italy regulation (July 19 th 2001) for Management Companies (SGR) deicated to small VC funds A.I.F.I.

38. Fiscal revision of closed-end funds: carried interest taxation Legal revision of “honour and professional requirements” of managing directors Fund raising strengthening: pension funds, Fund of funds Promotion of public incentives for VC Contribution for start up costs of management companies (SGR) A.I.F.I. future objectives A.I.F.I.

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