The European Commission and the European Investment Fund (EIF) are launching a venture capital fund programme named VentureEU. The aim? To stimulate investment in innovative young companies and scale-ups throughout Europe.

One thing is clear...

Europe is teeming with innovative ideas, but sometimes misses the boat to transform this potential into actual success, in particular because of a lack of investment. The United States have been able to profit from this failing, as a country with much higher levels of venture capital: 156 billion on average compared with "only" 56 million in Europe. In 2016, venture capitalists injected close to EUR 6.5 billion in the EU, in comparison with EUR 39.4 billion in the United States.

The consequence? Flight of the unicorns

Innovative start-ups with great potential for growth – so-called "unicorns" when they are valued over one billion dollars – do not find sufficient financial resources in Europe and so leave for other shores. So it's not by chance that "only" 26 of these unicorns called Europe their home at the end of 2017, while the United States could boast 109 and China 59. The challenge for Europe is to encourage these companies with their great potential to remain and grow in Europe.

Doubling European venture capital

In concrete terms, VentureEU groups six funds that will take on shares in other smaller funds in order to cover projects in at least four European countries each, and in sectors such as information and communication technology, digital technology, life sciences, medical technology, energy efficiency and resource use. For this pan-European programme, the EU is providing a stake of EUR 410 million, which should serve as leverage to raise an additional EUR 2.1 billion of public and private investment. The total aim is close to EUR 6.5 billion, which would help to boost young European companies and double the amount of venture capital currently available in Europe.

The aim: 1,500 companies

VentureEU demonstrates the EU's desire to offer European projects new sources of financing. The objective is clear: to create the conditions to spawn more companies that are capable of going global. According to the estimates of experts from the European Commission, the resources made available should provide support for almost 1,500 start-ups and scale-ups.

At the end of May, BNP Paribas Fortis and the University of Antwerp brought together a number of experts to discuss the many challenges involved in decarbonising the shipping sector. What are the key points to remember?

Established 12 years ago, the BNP Paribas Fortis Chair in Transport, Logistics and Ports - linked to the University of Antwerp - conducts in-depth research to find concrete and innovative ways of creating an increasingly resilient – and sustainable – maritime ecosystem.

Building on the success of its first two major events in 2017 and 2019, the Chair has decided to do it again this year. On 25 May 2023, a number of experts and stakeholders from the port and maritime transport sector gathered at the BNP Paribas Fortis premises in Antwerp to discuss the impact of decarbonisation on the maritime ecosystem.

Here are their main findings...

1 – We need to move up a gear

Shipping is currently the most carbon-efficient form of commercial transport in terms of CO₂ emissions per tonne and kilometre. But it can do better.

So far, industry players have favoured quick wins, such as modifying ship propellers and adjusting speeds. But on 25 May, the experts agreed that now is the time to experiment with new fuels and technologies, and move towards (near) zero emissions. The pace of change is accelerating, but there's no silver bullet yet. The costs (and risks) are huge.

2 – International regulation, please (and only one)!

The regulatory framework is complex and constantly evolving.

The International Maritime Organisation (IMO), which reports to the UN, is committed to reducing the carbon emissions from all ships by 40% by 2030 and by 70% by 2050 compared to 2008.

The European Union has committed to reducing greenhouse gas emissions from shipping by at least 55% by 2030, compared to 1990 levels. By 2024, an Emissions Trading Scheme (ETS) will apply to all ships of more than 5,000 gross tonnes sailing to or from EU ports.

In short: things are moving, and in the right direction. The problem, according to industry players, is that numerous regional and supra-regional programmes continue to coexist. This leads to administrative and financial overload.

On 25 May, all those involved agreed on two points: firstly, that a single international policy is essential, as this is a global sector; and secondly, that players who do not comply with the rules must be sanctioned.

3 – The transition to carbon neutrality will be costly 

The investments required to build new greener ships is estimated at $5 trillion by 2050. The cost of modernising the existing fleet is not yet known, but it will not be zero. In addition, the investment required to renew port infrastructures promises to be huge.

4 – Fuel and/or preferred technology: uncertainty reigns

What will be the fuel or technology of the future? Opinions are divided.

Many types of low-emission fuels are likely to coexist for some time. Electricity will only be used on coastal vessels, ferries and some tugs. Large ships will use liquefied natural gas (LNG) or liquefied petroleum gas (LPG), methanol, ammonia and possibly even biofuels.

Long-distance shipping will initially depend on heavy fuel oil, possibly with carbon capture and storage. Hydrogen has potential, but its density, storage and handling raise questions. Wind, solar and nuclear power are also in the mix.

But the real problem at the moment is that while the number of ships that can run on cleaner fuels is increasing, these fuels are not yet sufficiently available internationally. In other words, supply is much lower than demand.

5 – Banks play a key role

Banks have a key role to play in financing the energy transition. In 2019, eleven financial institutions – mostly European, including the BNP Paribas Group – launched the Poseidon Principles to support the transition to low-carbon shipping. This global framework makes it possible to measure and disclose the carbon intensity of bank loans in the maritime sector. There are now 24 signatories, including Japanese financial institutions. And that’s good news.

Want to know more?

Presentations, videos and photos from the 25 May event are available on this page.

On 12 October, our bank and the Belgian Venture Capital & Private Equity Association put the winning companies in the spotlight. With the support of Private Equity, all three completed a remarkable growth track.

The winners of the 2022 Private Equity Awards have been announced. It was the fifth time that BNP Paribas Fortis organised this event together with the Belgian Venture Capital & Private Equity Association (BVA). In addition to rewarding Belgian growth companies, this is also a good opportunity to highlight the added value of venture capital for start-up, fast-growing and mature companies.

And the winners are...

The three winners were selected from nine nominees in three categories: Venture capital, Growth, and Buy-out company of the year.

Qover was voted 'Venture Company of the Year'. This award was created for young companies that develop and market an innovative product or service with the support of a venture capital investor.

Qover enables any digital company to embed insurance in its value proposition. The company has built a tech platform that can launch any insurance product in any market, language and currency in a matter of days. The company is ready to scale up internationally and was praised for its innovative and disruptive business model.

Lansweeper was named 'Growth Company of the Year'. This category is for companies that have significantly expanded their activities through organic growth or acquisitions. They bring a financial partner on board who does not want control.

Lansweeper is an IT Asset Management platform provider that helps companies better understand, protect, and centrally manage their IT devices and network. The company has developed a software platform that can be used to create an inventory of all types of technology assets, installed software, and users. Besides setting an excellent financial track record, the company succeeded in gaining a solid foothold internationally.

Sylphar was the winner in the 'Buy-out Company of the Year' category. These are companies that achieve growth through involved management with the backing of a private equity investor with a controlling interest.

Sylphar develops and packages innovative and consumer-friendly OTC products worldwide. OTC products are medicines that are sold directly to the consumer without requirinng a doctor's prescription. Examples include tooth whitening products and skin, hair and body care products. Their spectacular digital transformation of the sales process, strong international expansion, and rapid product development were decisive factors.

"As a financial instrument, private equity is perfectly suited for boosting innovation and sustainable growth. The three winners have all proven this", says Raf Moons, Head of BNP Paribas Fortis Private Equity.

Find out more about Private Equity at BNP Paribas Fortis.

Source: press release

The Private Equity Awards will be presented on 12 October 2022. We are organising this event for the fifth time, together with the Belgian Venture Capital & Private Equity Association (BVA). Check out this year’s nine nominees.

The Private Equity Awards reward Belgian companies that have received support from a private equity or venture capital investor for their growth and development. This is the fifth time that the Belgian Venture Capital & Private Equity Association (BVA) and BNP Paribas Fortis are organising this prestigious award ceremony.

The nine finalists were nominated based on criteria such as sustainable growth, authentic leadership, and active ownership. They are divided into three award categories: Venture capital, Growth, and Buy-out company of the year.

Venture company of the year:

• Aerospacelab
  Aerospacelab is an innovative scale-up specialising in satellite platforms and information obtained from geospatial technology. The company designs, manufactures and operates a constellation of satellites for remote sensing, collecting useful information.
• Precirix
  Precirix is a biopharmaceutical company and a spin-off of the VUB. It is dedicated to extending and improving the lives of cancer patients by designing and developing precision radiopharmaceuticals.
• Qover
  Qover enables any digital company to embed insurance in its value proposition. The company has built a tech platform that can launch any insurance product in any market, language and currency in days.

Growth company of the year:

• Efficy
  Efficy has developed a complete and highly customisable SaaS (Software as a Service) CRM (Customer Relationship Management) solution. The company wants to become five times bigger, increasing its market share to 5% of the independent CRM market in Europe, within five years.
• Fedrus International
  Fedrus International is an international building materials group that manufactures and distributes roof and façade materials and services with a focus on EPDM rubber and zinc. The company wants to become the preferred partner of building professionals, with high quality standards and a great sense of innovation.
• Lansweeper
  Lansweeper is an IT Asset Management platform provider that helps companies better understand, protect, and centrally manage their IT devices and network. The company has developed a software platform that can be used to create an inventory of all types of technology assets, installed software and users.

Buy-out company of the year:

• Baobab Collection
  Baobab Collection sells diffusers and candles made from hand-blown glass or metal clad with precious leather. The Belgian brand remains true to its values of craftsmanship and excellence by supporting European expertise and craftsmen.
• Sylphar
  Sylphar develops and markets innovative and consumer-friendly OTC products worldwide. OTC products are medicines that are sold directly to the consumer without requiring a doctor's prescription. Examples include tooth whitening products and skin, hair and body care products.

• House of HR
  House of HR is a leading European HR service provider focusing on Specialised Talent Solutions and Engineering & Consulting. Their goal is to connect people’s talents and dreams with successful companies.

Drive innovation and sustainable growth

"Private equity is a financial instrument that is perfectly suited to boost innovation and sustainable growth. The result is strong growth. But private equity involves after all so much more than just raising capital. Venture capital investors also share their knowledge and network, opening many doors. All the nominees have a solid track record and are all in with a chance to win. I am very curious to see which companies will take home an award", says Raf Moons, Head of BNP Paribas Fortis Private Equity.

Find out more about Private Equity at BNP Paribas Fortis.

Source: Press release BVA

BNP Paribas Fortis Private Equity, together with Howest and Cronos, recently founded ForsVC, the first venture capital fund to focus exclusively on the Belgian gaming industry.

The gaming industry is booming all over the world. A lot of Belgian talent works on the development of computer and video games. In recent years, there has been a true explosion of creative video game start-ups in Belgium. But still, a lot of highly skilled creative people too often go abroad.

From brain drain to brain gain

As a venture capital fund for the Belgian video game industry, ForsVC wants to combat this brain drain. In the coming years, it will invest 10 to 15 million euros in gaming. Each of the three parties is bringing its specific experience and expertise. The Kortrijk college Howest as a reputable training institute. The Cronos group as a seasoned entrepreneur and investor in technology companies, including gaming studios. And the bank as a financial expert in Private Equity.

Stronger ecosystem

By making capital and expertise available to promising game companies, the existing ecosystem is enriched and made a lot more attractive. Belgian companies can professionalise themselves, develop high-quality games and pay competitive salaries.

University funds

Mireille Kielemoes, managing director fund investments Private Equity at BNP Paribas Fortis: “ForsVC is what we call a “university-linked” fund. This is a specific envelope within our Private Equity portfolio which, among other things, invests in university spin-offs or innovative companies whose IP (intellectual property) has a link to universities or knowledge institutions. Through these funds, we support innovation, creativity, job creation and entrepreneurship in Belgium in promising areas. For ForsVC, we’ll also be working via a participation in the game companies, but individual games are also eligible for project funding through revenue-based lending.”

Read the full press release here

Find out more about Private Equity here