HASSELT/DIEPENBEEK 13 SEPTEMBER 2011. The investment companies LRM, PMV, and Hasselt University establish KMOFIN 2, a new ARKIV investment fund for SMEs. The capital of this new ARKIV amounts to 35.5 million euros. The funds will be invested over a ten-year period in ambitious Limburg SMEs, start-ups, and spin-offs.
Extra risk capital for SMEs
KMOFIN 2 was established under the ARKimedes system of PMV (ParticipatieMaatschappij Vlaanderen), in order to make more risk capital available to starting and promising SMEs. The capital of KMOFIN 2 amounts to 35.5 million euros. 15 million euros of this will be accounted for by the ARKimedes-Fund II, 20 million euros by LRM, and 0.5 million euros by Hasselt University. KMOFIN 2 is aimed at companies from the fields of technology ICT, life sciences and clean technology, at promising Limburg-based SMEs, and at spin-offs. Both start-ups and ambitious growers can rely on the resources of KMOFIN 2. With the exception of the spin-offs of the University-Colleges Association of Limburg, the operational monitoring is fully integrated with the operation of LRM.
"The establishment of KMOFIN 2 fits perfectly into the investment strategy of LRM" stated Stijn Bijnens, General Manager of LRM. "Making risk capital available to SMEs in traditional or technological sectors is, and will remain a priority for LRM. The approval of KMOFIN 2 by ARKimedes Management is an acknowledgment of the work and the results that we have achieved with KMOFIN 1 since 2006."
Spin-off creation
In addition to SMEs and start-ups, spin-offs are an important target group for the new fund. "Through KMOFIN 2, LRM makes additional resources available for investments in spin-offs of various institutes" added Hugo Leroi, Chairman of the Board of LRM. "These spin-offs must want to be located in Limburg, and therefore, they are potential customers for the incubator network that LRM helps to build up. In addition to Research Campus Hasselt, BioVille, and Science Park Genk, last week, the official starting signal was given for the works on GreenVille, within this same context.
With spin-offs as a target group, KMOFIN 2 also perfectly complements the activities of the Tech Transfer UHasselt, and the expansion of application-specific knowledge at Hasselt University and Limburg-based Colleges. Within KMOFIN 2, 7 million euros will be reserved for spin-offs of the University-Colleges Association of Limburg. The spin-off records of this Association are handled and supervised by a separate investment team, in close consultation with LRM.
Rector Luc De Schepper of UHasselt: "I am proud of the fact that six new spin-offs were created last year at Hasselt University, out of the research institutes Biomed, EDM, and Imo/imomec, and under the close guidance of the Tech Transfer UHasselt. In addition, there are other spin-offs in the pipeline. This shows that in recent decades, the university, with over 500 researchers, has built up exceptional knowledge in frontier areas, which can strengthen the knowledge economy of Limburg. Therefore, Hasselt University takes the valorisation of research results and the creation of spin-offs, in addition to teaching and research, the third task of the university, quite seriously. Furthermore, the establishment of these companies on our campus are of added value to our knowledge institutions."
Dr. Ann-Pascale Bijnens, director of Tech Transfer UHasselt: "The spin-off investment domain is closely intertwined with Tech Transfer UHasselt, creating a maximum interaction between the fund and valorising research at the university and colleges, and enabling us to recognise opportunities at a very early stage. The hands-on guidance from investment managers, both before and after the start-up of the company increases the likelihood of success of tech companies with an academic, technology-driven background. Thanks to the fund, Hasselt University will be able to provide start-up funding for 8 to 10 spin-offs over the next five years. This way, these companies will have a better chance of growing into important economic players in the region.
Background
The foundation of KMOFIN 2 fits the ARKimedes initiative, in which PMV takes out a significant minority stake in funds that invest in high-growth companies, which form the engine for innovation, employment, and quality of life. Through the ARKimedes initiative, the Flemish government provides 100 million euros for the new ARKimedes Fund II, to finance growth companies in Flanders. Authorised lenders could apply to establish an investment fund ((ARKIV)) together with ARKimedes Fund II, to provide SMEs with risk capital. As a coordinator, LRM, in conjunction with Hasselt University, obtained the approval to found KMOFIN 2.
KMOFIN 2 is the successor to KMOFIN 1, an ARKIV-fund with LRM and the ARKimedes Fund as shareholders. From 2006 to 2010, KMOFIN 1 invested over 20 million euros in 30 different Limburg-based SMEs.
About PMV
PMV NV is a Flemish investment company. It finances promising entrepreneurs from the very start, up to the growth and internationalisation of their business. It also invests in major infrastructure projects and real estate. It focuses on the sustainable economic development of Flanders, with provable added value for the economy and society.
www.pmv.eu
About Hasselt University
Hasselt University is an independent, enterprising university that chooses active education, tailored to the student; top research in spearhead fields; entrepreneurship and innovation.
Hasselt University wants to be an engine for the knowledge economy in the (EU) region through its high-quality research, and an intense interaction with stakeholders in the (EU) region. Through Tech Transfer UHasselt and UHasselt Venture Management, a framework is created to closely guide the researchers from Hasselt University and the Limburg-based colleges with advice and funding for the creation of an enterprise.
More information
LRM
Jeffrey Alenus
Commercial director
T +32 11 24 68 19
M +32 475 93 03 61
E j.alenus@lrm.be
PMV
Ben Jehaes
Spokesperson
T +32 2 229 52 30
M +32 495 54 78 40
E ben.jehaes@pmv.eu
Hasselt University
Dr Ann-Pascale Bijnens
Director Tech Transfer UHasselt
Managing Director UHasselt Venture Management
T +32 11 26 80 17
M +32 494 180 414
E annpascale.bijnens@uhasselt.be