AAL Investment Forum

What is the right mix of public and private investments?

- Regional Needs in AAL Investments

Mikkel Hemmingsen Director of the Region of Southern Denmark

15 September 2010, Odense

Welfare Technology - A Strategic Business Area in the Region of Southern Denmark:

• We have a regional strategy for developing the business area of welfare technology

• We have the right competence areas in the region

• We have the right players in the region

• We have dedicated public venture capital to a regional capital fund aimed at investing in young companies in the field of welfare technology

Kvalificeret udbud

Research /Knowledge /Education

Internationalisation /Venture capital

Supplyof welfare

technology solutions

Demandfor welfare

technology solutions

Elements in Developing a Strategic Business Area

Four commercial strengths in the region

Competence areas Examples of products and services for the health and welfare sector

IT system development

Electronic patient journals, administrative IT systems for residences and institutions, for example

Intelligent aids Self-operating (robot) vacuum cleaners, raise/lower/lift devices, intelligent beds, hand-held computers for health and care staff

Automation Robots for surgery, diagnostics and blood tests, packing medicine in daily rations, automation of support functions (meals, washing, purchasing, transport) at institutions

Telemedicine Patient suitcases for patients with chronic illnesses, video consultations for home help assistants and patients

Medicine and biotech Pharmaceuticals

Medico-technical equipment

Measurement instruments, disposable items, etc.

Misc. Other subsidiary sectors related to the health and welfare sector.

We have the right players …

4 Hospital Units – currently at 18 sites- Odense University Hospital/Svendborg Hospital- South-West Jutland Hospital- Hospital Little Belt- South Jutland Hospital

Research & education- SDU (Multiple faculties and centres, including - The Mærsk Institute- The Mads Clausen Institute- Knowledge Lab)- Designskolen Kolding- University College West- University College South - University College Little Belt

Commercialisation& business promotion- Tech Trans- Odense Development Forum - South Jutland Development Council

Knowledge institutions - Danish Technological Institute -MedCom

Danish Innovation Incubators

Network- RoboCluster(Supplynet, CarenetMedicnet)Alu-ClusterMechatronics clusterIT Forum Southern DenmarkIT Forum Fyn

Authorities- 22 local authorities- The Region of Southern Denmark

- The National Board of Social Services - And others

Companies- More than 200 companies- More than 30% in Odense

THE INITIATIVE IS OPEN TO EVERYONE WHO IS INTERESTED IN WELFARE TECHNOLOGIES AND SERVICES

Unions- FOA- The Danish Nurses’ Organisation

The Southern Denmark Growth Forum has planned a capital fund for stimulating the market

Matching funds needed

Southern Denmark Growth Forum

Total: DKK 100 million

Welfare technology investment fund

DKK 50 million

DKK 50 million

- for start-ups and young companies bringing new products to the market

- will generally take the form of venture capital allocated to non-listed companies

- may also involve loan financing.

Access to Private Venture Capital is Required

• There is public money available – especially for welfare technology/AAL projects – but there is a financial gap when it comes to bringing the new technologies to the market

• In Denmark, there is public money dedicated to venture capital, but these funds must be mixed with private venture capital (this is currently a major problem in Denmark)

• Improved options for matching public and private investments in young companies – in a flexible manner – are required

• Private investors seem to be reluctant to become involved – apparently they are not aware of the market potential that exists within the area of welfare technology/AAL

• Therefore, it is essential to focus continuously on the market potential in this business area

• Business success stories are still few and far between – so it is important to identify and highlight more successful cases