3FOOD

Third Industrial Revolution Consulting Group
support (e.g. LuxInnovation) (equity needs of approximately 0.2 – 1.0 Euro million per
project); 2) Luxembourg’s industrial companies lack equity providers for growth projects
(especially if companies cannot meet balance sheet requirements of commercial banks –
equity needs of approximately 0.5 – 5.0 Euro million per project); 3) Foreign direct investors
sometimes need equity providing partners in Luxembourg aside from strategic industrial
partners (equity needs of approximately 1.0 – 10 Euro million per project). A private equity
fund focused on industry would assist companies that are working in the industrial sector in
their growth projects. This would accelerate growth of Luxembourg’s industrial activity. The
setup of a private equity investment fund can be accomplished in approximately 10 months.
The following development phases are foreseen: a) Developing a strategy paper for the
fund (fund strategy, ideal investors, ideal projects, project funnel, industry focus,
management structure, etc) –Months 1-3 b) Marketing of the fund towards principal
stakeholders including potential investors – Months 4-6; c) Preparation of operations
(recruiting management team, defining main processes, marketing of the fund towards
the public, etc. – Months 7-9; d) Operational start of the fund – Month 10. Involved
stakeholders include: The Luxembourgish government aims to increase the percentage of
industrial production within the nation’s gross domestic product. Universities and research
institutions have an interest in spinning off technical businesses and ensuring their success.
Companies have an interest in finding adequate funding for their growth projects. Business
consultants (coaches for start-ups and entrepreneurs) and semi-public institutions (e.g.
LuxInnovation) have an interest in helping entrepreneurs to finance, set up, and grow their
business (ideas) by developing their strategies and partner networks.Key challenges are:
1) securing investors of the fund; 2) developing a partner network that identifies projects
and fills the project funnel; 3) recruiting a competent management team; and, 4) engaging a
competent advisory board that acts in the interest of the fund. Resources needed: A first
fund should have a capital of approximately 15-30 million Euro, depending on the
investment project mix, to be invested within approximately three years. Project exit should
be possible within three to five years. A management team requires an industry specialist
and a private equity fund specialist, plus support (approximately 0.5 millon Euro expenses
per annum).
5.4 Partner with the financial and insurance sector in setting up an Internet platform,
incorporating a triple or quadruple helix knowledge network with government, academia
and other stakeholders, to examine the range of financial instruments that can be applied
for accelerating Smart Industry start-ups, scale-ups, and expansion of domestic and
export business model innovation. Disruptive start-up opportunities should be examined
for within existing companies (e.g. a skunks work) and new ones.
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