annual report 2013 bid network

Annual report BiD Network Foundation 2013 - 1

ANNUAL

REPORT

2013

BID NETWORK

Amsterdam, April 2014


CONTENTS

INTRODUCTION ............................................................................................................. 3

LOOKING BACK AT 2013 ........................................................................................... 4

MISSION AND GOALS ................................................................................................. 6

ONLINE PLATFORM ...................................................................................................... 6

ADVISORY SERVICES .................................................................................................. 7

MAIN PARTNERS ........................................................................................................... 9

RESULTS ........................................................................................................................ 12

PROJECT BIDX ............................................................................................................. 19

SECTOR CHALLENGES .............................................................................................. 20

COACHING PROGRAM ............................................................................................... 23

INVESTOR MATCHMAKING SERVICES ................................................................ 24

UNITED ENTREPRENEURSHIP COALITION........................................................ 27

INTERNATIONAL PARTNERS ................................................................................... 28

GOVERNANCE AND ORGANIZATION ................................................................... 33

ACCOUNTABILITY ....................................................................................................... 35

FORECAST 2014 .......................................................................................................... 40

FINANCIAL REPORT 2013 ........................................................................................ 42

RESULT ........................................................................................................................... 42

BALANCE ........................................................................................................................ 44

BUDGET 2014 .............................................................................................................. 46

FINANCIAL STATEMENTS ........................................................................................ 47

ACCOUNTING PRINCIPLES FOR FINANCIAL REPORTING ........................... 50

NOTES TO THE BALANCE SHEET .......................................................................... 53

NOTES TO THE STATEMENT OF INCOME & EXPENDITURE ........................ 58

INDEPENDENT AUDITOR’S REPORT .................................................................... 66

ACCOUNTABILITY STATEMENT OF THE SUPERVISORY BOARD ............... 67


INTRODUCTION

A growing belief in the potential of stimulating entrepreneurship as a

means to create jobs and overcome poverty has resulted in a

considerable increase in the number of organizations operating in the

field, both in BiD Network’s home market The Netherlands and

internationally.

Because we see a growing need for financing for a growing number of

entrepreneurs in emerging markets and at the same time a growing

number of investors interested in finding these entrepreneurs and

financing their businesses, we used 2013 to sharpen up and prepare

our organization for an even more professional and efficient service

delivery to both ends of this pipeline.

We have started to expand the reach of our matchmaking services by

seeking and starting new strategic partnerships with investors and by

using competitions and local partners to locate entrepreneurs in need

of financing.

BiD Network and its funding partners recognize the importance of

continuing to reach out to entrepreneurs in the lower end of the

missing middle (USD 10,000 to 1,000,000). Women in business and

social entrepreneurs that generate impact for people and planet (i.e.

clean energy, health and safety solutions, environmental issues and

job creation) form a growing group that will provide jobs to overcome

poverty. We will increase our focus on these groups and look into

processes to support and improve our service delivery to both

investors and entrepreneurs.

Adjusting a strategy to evaluate and decide on your role in global

developments is a must in these fast times, so that’s how we kick off

2014. All staff and volunteers of BiD Network are involved in deciding

how BiD Network can best continue to serve its beneficiaries and

guarantee delivery of the best services possible.

Paul van Aalst

Chairman (a.i.) Supervisory Board


LOOKING BACK AT 2013

To improve the effectiveness of our investor matchmaking services,

BiD Network has increased its focus on investor interests and on

generating deal flow. This meant investing in the capacity for financial

analysis and deal structuring for BiD Network and partners, and

offering integrated online solutions through the bidX online platform

for deal sourcing, business planning and investor matchmaking

services. We have adapted BiD Network’s internal organization, by

making better use of the expert resources of our daughter company

bidX on marketing and service development, and by attracting

expertise for financial modeling and deal structuring.

In March, after an internal evaluation we concluded that progress in

realizing the bidX online services was promising, but would require

extra time and budget to reach a commercial launch. We adjusted our

organization accordingly, while we started to explore new strategic

financing partnerships. In the fourth quarter it became clear that an

excellent strategic opportunity was available from one of the existing

partners of bidX, Sampoerna Mekar Pte. Ltd. By the end of 2013 we

reached a full agreement on spinning off bidX to Sampoerna with effect

from 1 January 2014. The investment by Sampoerna will speed up the

completion and launch of the bidX platform and online service

development, and provides bidX with a dedicated corporate

environment that will mature this initiative of BiD Network,

Sampoerna, and initial sponsors the Dutch Postcode Lottery, USAID

and the Department for International Development (DFID). As part of

this spin-off, bidX will be fully independent from BiD Network as of

January 2014. Thierry Sanders will move on as director of bidX while

Hendrik van Gent will continue as the director of BiD Network. BiD

Network wishes Thierry and his team success with the further

development of bidX.

These adjustments in 2013 have absorbed great amounts of energy

from the BiD Network team and siphoned away attention from project

and service delivery. This caused a material negative impact on our

results, such as the number of finance ready plans. While it was our

intention to increase our results and thus our impact, these stayed

more or less on the same level as the years before. Late 2013, the

team and partners boosted the pipeline of entrepreneurs and business

plans as well as investors through five events (Amsterdam, Kigali,

Bujumbura, Mexico and Amman) that were all more than ever focused


on matchmaking. The team intensified contact with entrepreneurs and

investors in the process of matchmaking. Financially, BiD Network

closes 2013 with a considerable negative result of EUR 1,300,000,

mainly due to extra costs related to the strategic changes and the

financing structure of bidX development. The good news is that with

the already contracted income for 2014 and the structurally lowered

costs, 2014 is expected to close with a positive result of over EUR

400,000. In terms of outputs and results BiD Network performed less

than planned and less than in 2012, mostly due to the turbulence in

Q2 and Q3. With the outputs from the boosts in Q4 and a restructured

organization, BiD Network is now more than ready to focus on project

delivery and on providing investor matchmaking services. BiD Network

will continue to use the online services of the platform and will work

closely together with bidX in serving entrepreneurs, investors and

other clients.

Hendrik van Gent

BiD Network Director


MISSION AND GOALS

BiD (Business in Development) Network Foundation is registered as a

Foundation under Dutch law at the Chamber of Commerce in

Amsterdam with registration number 34264155. BiD Network has its

registered offices at De Ruyterkade 107, 1011 AB in Amsterdam. The

Foundation was incorporated on 29 December 2006.

BiD Network’s mission is to contribute to sustainable economic growth

in emerging markets through entrepreneurship. BiD Network does this

by preparing entrepreneurs for investors.

Small and medium sized enterprises (SMEs) are the backbone of any

economy. By creating jobs and income, they are crucial to the

economic and social development of emerging markets. They are also

a powerful force against poverty. However, businesses often encounter

difficulties getting started or growing because they lack access to

finance and know-how.

BiD Network aims to:

Start and grow businesses in emerging markets;

Create jobs and income through these businesses;

Mobilize private capital and know-how to businesses.

BiD Network focuses on businesses in developing countries with a

financing need of USD 10,000 – USD 1,000,000. We provide

professional services to entrepreneurs, coaches, investors and financial

service providers.

BiD Network operates its services together with a network of

international partners in Burundi, Ecuador, Colombia, Indonesia,

Jordan, Kenya, Kosovo, Liberia, Mexico, Palestine, Peru, Philippines,

Rwanda, Tanzania and Uganda. These partners are business and

financial service providers.

ONLINE PLATFORM

The core of BiD Network is the web-platform www.bidnetwork.org. This

website, with around 55,000 members, offers entrepreneurs the

opportunity to participate in business plan competitions, work on their

business plan, get advice from coaches and be matched with investors.

Since mid-2011 the website was operated by BiD Network’s subsidiary

bidX. Through 2013, BiD Network and Sampoerna Mekar Pte. Ltd. have

invested in the company. BiD Network has done so through the ‘G20

http://www.bidnetwork.org/


project’ funded by IFC with grants from USAID and DFID, and through

the ‘BiDx10 project’ funded by the Dutch Postcode Lottery. BiD

Network spun off bidX in January 2014 to Sampoerna Mekar Pte. Ltd.

ADVISORY SERVICES

BiD Network offers investment-related services to entrepreneurs and

investors and supports international partners in strengthening their

services to prepare SMEs and investors for finance. With its online

platform, BiD Network has a targeted and global tool for deal sourcing,

business planning and matchmaking for entrepreneurs, coaches and

investors. These online services are complemented by (‘offline’)

advisory services by our staff and international partners. These

advisory services are based on standardized packages developed by

BiD Network and adapted by staff and international partners to local

contexts. They range from Ready4Finance training and certification of

trainers, to support on how to source and prepare entrepreneurs for

finance and how to establish local coaching and investors networks.

Our international partners directly serve entrepreneurs, coaches and

financiers in their respective regions.

In 2013, BiD Network has offered the following services to our

international partners (see chapter International Partners):

Advisory services

BiD Network has offered our partners Advisory Services on:

Using the online platform www.bidnetwork.org and competition,

business planning, matching and moderation functionalities;

How to run a business plan competition;

How to prepare entrepreneurs and provide feedback on business

plans;

How to set up a coaching network;

How to identify finance ready business plans;



How to set up investor networks and offer matchmaking services

to entrepreneurs.

Ready4Finance training of trainers and certification

Ready4Finance, developed by BiD Network and funded by Hivos and

FMO, is a modular training package designed for business service

providers that want to support SMEs in their start-up and growth, and

access to finance. The curriculum covers all aspects of business and

financial planning and getting access to finance. Written with investors’

requirements in mind, the courses teach entrepreneurs how to write a

business plan, choose the right financial options for their business,

value their company, structure an investment deal, prepare a suitable

exit, pitch effectively, build a management team, and negotiate with

an investor. International partners have been trained to become

certified license holders of these training. To date, over 3,000

entrepreneurs participated in Ready4Finance training sessions and 41

trainers of 10 business service providers have been certified to conduct

one or more modules.

Besides providing services to our international partners, BiD Network

delivered the following services to other clients:

International Sector Challenges

Sector Challenges are business plan competitions targeting a specific

sector or theme. These were organized in collaboration with partners

that want to promote businesses and investments in a specific sector

or country, within the framework of their CSR program. In 2013, the

fourth edition of the Women in Business Challenge took place in

collaboration with ING Bank, ICCO and UnitedSucces; the ICT

Challenge in collaboration with EY, TNO, eVentures Africa Fund, SEAF

and the Palestinian Investment Fund as part of the United

Entrepreneurship Coalition program was concluded; and the third

edition of the Ondernemen Zonder Grenzen competition took place, in

collaboration with NCDO, EY and De Investeerdersclub.

Coaching Program

In our coaching program BiD Network links entrepreneurs with

professionals from corporate organizations and NGOs who support

entrepreneurs in their business planning. Formal partnerships in 2013

existed with ING Bank, EY and PUM.


Growing SMEs events

Growing SMEs events were organized in Rwanda – with an East African

focus – and in Mexico – with a Latin American focus. In Jordan, a

pitching event took place bringing Palestinian and Jordanian

entrepreneurs and investors together. Growing SMEs is an

international event which aims to explore and share the latest trends

in developing, growing and financing SMEs in emerging markets; while

bringing together and matching entrepreneurs and investors.

Investor Matchmaking Services

BiD Network has an international network of around 250 investors and

supports this network to identify finance ready viable business

propositions. BiD Network supports entrepreneurs to prepare a ‘ready

for finance’ business and financial plan, an elevator pitch and investor

factsheet and to identify an investor.

MAIN PARTNERS

Dutch Postcode Lottery

The Dutch Postcode Lottery (Nationale

Postcode Loterij) has been a main partner

of BiD Network since 2008. The Dutch

Postcode Lottery was established in 1989.

It aims to support organizations working

to create a fairer, greener world by raising

funds and increasing public awareness

with the help of a lottery. Since 2008, BiD Network has received a total

of EUR 5,145 million.

“BiD Network demonstrates that entrepreneurship and poverty

reduction can go hand in hand, and makes effective use of the new

opportunities provided by the internet.” - Marieke van Schaik –

Managing Director Dutch postcode Lottery

Dutch Ministry of Foreign Affairs

The Dutch Ministry of Foreign Affairs

has been a main partner of BiD Network

since its establishment in 2007. It

emphasizes private sector development

as the key to economic growth, and as

one of the most important means towards poverty alleviation. Between

2007 and 2010 the Dutch Ministry of Foreign Affairs funded BiD


Network directly. Since 2011 BiD Network has received funding from

the Dutch Ministry of Foreign Affairs through the MFSII United

Entrepreneurship Coalition with SPARK Foundation.

One of the Ministries’ employees stated the following:

"BiD Network is a very young dynamic organization, able to respond

quickly to new developments and opportunities. The assistance from

BiD and partners is very much appreciated by entrepreneurs. BiD

Network has developed into a well-known organization in The

Netherlands mobilizing hundreds of volunteers for coaching, screening

and jury membership. BiD Challenges have resulted in a large number

of business plans submitted by entrepreneurs."

SPARK

Since 2011, SPARK and BiD Network have

been coalition partners in the United

Entrepreneurship Coalition, a five-year

program funded by the Dutch Ministry of

Foreign Affairs (MFSII). This program focuses on strengthening

business service providers and supporting SMEs in Burundi, Kosovo,

Liberia, Palestine and Rwanda. SPARK, founded in 1994, develops

higher education and entrepreneurship so that young ambitious people

are empowered to lead post-conflict societies into prosperity. SPARK

works closely with a range of local partners to build cooperative, locally

sustainable networks of support for promising entrepreneurs.

IFAD

The International Fund for Agricultural

Development (IFAD), a specialized

agency of the United Nations, was

established as an international financial

institution in 1977 as one of the major

outcomes of the 1974 World Food Conference. The conference was

organized in response to the food crises of the early 1970s that

primarily affected the Sahelian countries of Africa. It resolved that "an

International Fund for Agricultural Development should be established

immediately to finance agricultural development projects primarily for

food production in the developing countries."

The goal of the IFAD is to enable poor rural people to improve their

food and nutrition security, increase their incomes and strengthen their

resilience. IFAD also acts as an advocate for poor rural women and

men. IFAD’s multilateral orientation provides a strong global platform

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for discussing rural policy issues and increasing awareness of why

investment in agriculture and rural development is critical to reducing

poverty and improving global food security.

International Finance Corporation

The International Finance

Corporation (IFC), a

member of the World

Bank Group, is the largest global development institution focused

exclusively on the private sector in developing countries.

Established in 1956, IFC is owned by 184 member countries, a group

that collectively determines our policies. IFC’s work in more than a 100

developing countries allows companies and financial institutions in

emerging markets to create jobs, generate tax revenues, improve

corporate governance and environmental performance, and contribute

to their local communities. IFC’s vision is that people should have the

opportunity to escape poverty and improve their lives.

http://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/home


RESULTS

During 2013 BiD Network and bidX offered joint services on the platform of

bidnetwork.org. In view of the envisaged migration to the new platform of bidX,

limited resources were spent on the development of new functionalities on

bidnetwork.org. Maintenance and customer support was provided as usual, to

ensure quality service provision. Customer requests were handled by the bidX

customer services team within 16 working hours and received an average client

satisfaction rate of 90%.

Despite cost cutting measures and the restructuring of the organization, key

targets were realized up to the same level as 2012. Like in 2012, the percentage

of entrepreneurs who submitted a full business plan after having created an

application was low. This may partially be related to the complexity and

extensiveness of the business plan template. In the design of the business

summary template for the bidX groups we have adapted this. At the same time

we, as well as jury members for our competitions, noticed a raise in quality of

business plans submitted.

In a period of 7 years our network of business coaches has expanded rapidly to

1,795 voluntary coaches by the end of 2013. A number of coaches have been

very active, supportive and committed for a longer period and some of the

coaches were active in the past. In 2014, BiD Network will adapt the coaching

services to ensure we can dedicate our time optimally to serve our active group

of coaches who are supporting entrepreneurs to get ready for finance.

Due to the implementation of strategic changes some of our results are lower

than expected. This includes the number of finance ready plans. At the end of

2013 a new matchmaking strategy was developed, which will be implemented in

2014. In 2014 our portfolio management will be improved by allocating more

efforts and resources to this service for investors and ready for finance

entrepreneurs, which we identified as one of the key values our organization can

add within the worldwide SME support sector.

Remarkable are the online results achieved by our international partner BBIN in

Burundi, a country where the internet penetration is still relatively low. Other

positive outcomes are the matches made in the Philippines and Kenya, countries

where efforts of BiD Network and our international partners to build up an

investor network as well as matchmaking services are truly paying off.

Thanks to the growing success of the Women in Business Challenge, 43% of all

full business plans were submitted by woman entrepreneurs; whereas in the

period from 2005 – 2012 the average percentage was 26%. Some other facts

about the full business plans submitted in 2013:


69% of the plans were submitted for a registered business; 31% of the

plans were submitted for an unregistered business.

57% concerned a start-up business and 43% an established business;

Amounts of finance needed were ranging from USD 10,000 – 50,000

(23%), USD 50,000 – 100,000 (17%), USD 100,000 – 500,000 (37%)

and more than USD 500,000 (23%).

Most plans submitted were for businesses in the services sector (34%),

followed by agriculture, forestry and fishing (18%) and manufacturing

(16%).

From 2005 to 2012 BiD Network surveyed entrepreneurs who benefited from our

services during the previous year, to collect information on their business

progress. Due to increased monitoring efforts in 2013 we received a 68%

response rate, compared to 51% in 2012. Of all respondents to our surveys we

know that more than 1,000 SMEs supported by BiD Network have started or

grown in between 2005 and 2013, creating over 6,000 jobs.

BiD Network aims to achieve results efficiently, maximizing the jobs created and

businesses started or grown per EUR of budget spent. The average costs per job

created are EUR 3,154 (BiD Network expenses of EUR 2,378,684 in 2012

resulted in 754 jobs) and the average costs per SME started or grown are EUR

13,363 (BiD Network expenses of EUR 2,378,684 in 2012 resulted in 178 SMEs

started or grown). bidX and BiD Network share the non-financial KPIs and

impact results, but apply their own financial results and efficiency ratios.


PROJECT BIDX

BiD Network uses the web-platform www.bidnetwork.org. This website with over

55,000 members offers entrepreneurs the opportunity to participate in business

plan competitions, work on their business plan, get advice from coaches and be

matched with investors.

Since mid-2011 the website is operated by BiD Network’s spin off company bidX.

bidX shares the office with BiD Network. BiD Network and the Sampoerna Mekar

Pte. Ltd. have invested in the company. BiD Network has done so through the

G20 project funded by IFC with grants from USAID and DFID, and through the

BiDx10 project funded by the Dutch Postcode Lottery. BiD Network spun off bidX

in January 2014 to ensure further investment in the platform. BiD Network will

continue to use the platform and will focus on delivering the best matchmaking

results for its projects using the platform.

bidX bv

BidX bv (bidX) is a web services company. It operates the community

www.bidnetwork.org and develops the new www.bidx.net white label multi-

community platform. BidX is a “Software as a Service” (SaaS) company, since it

offers its services based on subscriptions to clients via the internet. BidX offers

its web-services to entrepreneurs, to intermediaries that serve entrepreneurs, to

mentors and to financiers of SMEs. During 2013 bidX has worked closely with

her shareholders, BiD Network and Sampoerna Mekar PTE Ltd. to serve joint

clients.

The mission of bidX is to facilitate the start, growth and finance of SMEs in

emerging markets via internet services. BidX aims to be the largest pipeline of

emerging market SMEs seeking finance, making a significant impact in emerging

markets.

The 2010 business plan described three objectives for the start-up phase of

bidX:

to be the most effective platform for emerging market entrepreneurs and

investors;

to be more effective in financing SMEs than normal financial institutions;

to reach a break-even point within four years. This is in 2016, earlier may

be possible.

The most significant results in 2013 were:

The successful launch of bidX’s new competition system for the bank

Banorte and New Ventures in Mexico in May of 2013.



http://www.bidx.net/


The launch of the first bidX group (portal) for our first client, the Clean

Cookstoves Alliance.

The launch of the 5th Women in Business Challenge, operated by BiD

Network with support of ING.

While working on the development of www.bidx.net , the servicing of

entrepreneurs, investors and mentors on www.bidnetwork.org continued.

Web development activities in 2013

www.bidnetwork.org saw 8,900 members applying and 2,700 new business

proposals being submitted. Despite the activity on the site, in terms of web

development the website was maintained only by repairing minor issues. All web

development efforts went into the development of www.bidx.net and the

functionality of online white label groups. These groups are essentially

Wordpress websites which have bidX community functionality built into it. All the

Wordpress portals (“groups”) are connected by a common database. More

information about the groups can be found here: www.bidx.net/groups.

SECTOR CHALLENGES

Women in Business Challenge

The 4th edition of the competition was again supported by ING and built on the

successes of the three previous competitions, attracting close to 300

participants. Of these participants the 50 most promising businesses were

chosen and matched to professionals - mainly from the ING coaching program -,

and almost 100 business plans were submitted. Our expert jury selected five

finalists: Lauren Thomas with Mozambikes from Mozambique; Dr. Sanjeevani

with Mobile Dental Clinic from India; Jazmin Chi for LevGrow from Mexico; Dulce

Martinez for Fabrica Social from Mexico and Affiong Williams for Healthy Snacks

from Nigeria, who were invited to The Netherlands to participate in a Women in

Business week in September 2013, where they benefited from training sessions,

Business-to-Business (B2B) and investor meetings and financial consultancy

from EY experts. The final event took place at the headquarters of ING. The

Women in Business Challenge 2012-2013 was won by Affiong Williams for her

business REEL Fruits. Her market based approach, innovative thinking and

dedicated enthusiasm convinced the jury to grant her EUR 5,000 prize money

raised by Happietaria.





http://www.bidx.net/groups

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Read more: http://www.bidnetwork.org/en/news/5-finalists-women-business-

challenge-2013

Ondernemen Zonder Grenzen

The 4th edition of Ondernemen Zonder Grenzen, or Business without Borders, a

business plan competition for Dutch entrepreneurs with ambitions in emerging

markets, was launched in June 2013, together with partners NCDO, EY and De

Investeerdersclub. The launch event attracted close to 130 participants who had

the opportunity to learn more about doing business in developing countries, and

to network with investors and

potential business partners. The

entrepreneurs had the

opportunity to benefit from

coaching services – 24 were

matched with EY professionals -

as well as a Summer School. Of

the 113 participants, 43

submitted full business plans.

Accordingly, 13 finalists were

selected. The final event was held in De Rode Hoed in Amsterdam. The winners

were African Clean Energy, Rural Spark, ENEWA, Africa Sustainable Aquaculture

and Jiro-Ve. Two additional special prizes were awarded: The EY coaching prize

was won by Jiro-Ve and the public prize by Martono & Company.

Read more: http://www.bidnetwork.org/en/news/ondernemen-zonder-grenzen-

businessplan-competition-finals

ICT Challenge

Entrepreneurs from Burundi, Kosovo, Liberia, Palestine and Rwanda, the

countries supported by the United Entrepreneurship Coalition, could participate

in the ICT Challenge. This competition was organized by BiD Network, in

collaboration with EY as coaching partner, TNO as event partner and investment

partners eVentures Africa Fund, SEAF and the Palestinian Investment fund. Five

finalists were selected: Henri Nyakarundi from Rwanda for African Renewable

Energy Distributor; Innocent Munyaneza from Rwanda for Hoziyana Group;

Fabrice Mutekano from Burundi for E-Burundi.com; Salah Ahmed from Gaza strip

for Avatar and Amos Sando from Liberia for Amoscom. The finalists were invited

to an ICT business week in The Netherlands or to the Growing SMEs East Africa

in Rwanda, where investor meetings, training sessions and an event took place.

Read more: http://www.bidnetwork.org/en/news/5-finalists-ict-challenge-2013

http://www.bidnetwork.org/en/news/5-finalists-women-business-challenge-2013

http://www.bidnetwork.org/en/news/5-finalists-women-business-challenge-2013

http://www.bidnetwork.org/en/plan/379739



http://bidnetwork.org/en/plan/378829




http://www.bidnetwork.org/en/news/ondernemen-zonder-grenzen-businessplan-competition-finals

http://www.bidnetwork.org/en/news/ondernemen-zonder-grenzen-businessplan-competition-finals

http://www.bidnetwork.org/en/news/5-finalists-ict-challenge-2013


Student challenge

The BiD Student Challenge 2013 was a fourth time collaboration between Aureus

(VU University), BiD Network Rabobank and Solving Efeso. Seventy students

from different business related studies, coming from universities around the

Netherlands, reviewed 20 business plans of BiD Network entrepreneurs.

Together with their assigned coaches the groups worked on providing feedback

on the plans and suggestions on how to make improvements for the

entrepreneurs. BiD Network organized a master class to train the students on

basic structures in business plans, on what investors want and on pitching. To

put the master class into practice the students were asked to prepare a YouTube

pitch video presenting their improved business plan to the jury and potential

investors.

Generación Impacto

Banorte and New Ventures México partnered in 2013 with bidX and BiD Network

to organize Generación Impacto - a business plan competition for impact

enterprises focusing on training and capacity building. bidX supplied the

competition software through its partner Skipsolabs. The project was a success,

attracting over 700 participants. The online platform catered well for the needs

of the initiative: http://www.generacionimpacto.com.

Clean Cookstoves Investment Community

In September 2013, with the support of bidX and BiD Network, the Global

Alliance for Clean Cookstoves started an online platform for their investment

community. For this they used the bidx group functionality and the experience

has helped us to test and improve the tools. It was the first group bidX ever

launched: https://cleancookstoves.bidx.net/. This project also allowed the

integration with the Skipsolabs competition software that the Global Alliance for

Clean Cookstoves used to manage two of their business plan competitions:

http://investment.cleancookstoves.org/en/.

COACHING PROGRAM

BiD Network works together with 1,795 Dutch and international coaches.

Coaches are professionals who have knowledge about business development,

financial planning, or marketing and sales and who have a personal or

professional interest in SME development in emerging markets. Coaches

voluntarily support entrepreneurs in writing their business plans; on average 20

hours during a period of 3 months per entrepreneurs. One BiD Network staff

member is dedicated to match coaches and entrepreneurs and to support

coaches in their job. BiD Network offers various trainings to coaches and

organizes events where they can meet each other. Coaches and experts are

registered on www.bidnetwork.org. The volunteers are not rewarded financially

for their services. In 2013, 206 coaches supported entrepreneurs in their

business planning. In addition, around 100 local volunteers, among which

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students and coaches, actively supported entrepreneurs at our events to get

ready for their meetings with investors and other businesses.

This year, EY and ING were our main coaching partners for Ondernemen Zonder

Grenzen (EY), the ICT Challenge (EY) and Women in Business (ING).

INVESTOR MATCHMAKING SERVICES

Investor Matchmaking services

In 2013, BiD Network worked out a strategy to further strengthen and

accelerate its matchmaking services. This plan will be implemented in 2014. A

few staff members were trained in financial analysis and modelling, and at the

end of 2014 it was decided to hire an extra matchmaker. Investor matchmaking

services were offered to entrepreneurs with finance ready plans, and our

matchmakers were involved in a number of dedicated matchmaking projects.

Clean Cookstoves Investment Community

The goal of the Investment Community project of the Global Alliance for Clean

Cookstoves was to get 12 entrepreneurs pitch ready for deal rooms in

September and October (in New York and Nairobi). The activities as part of this

project were to conduct a business plan gap assessment, a financial plan

assessment, the assessment and creation of a factsheet, a pitch deck, and a

financial request.

The project has resulted in 12 pitch ready entrepreneurs by early September, 4

entrepreneurs pitching their business proposition in New York City in September

2013 and 4 entrepreneurs meeting with investors in Rwanda in November 2013

(the Global Alliance for Clean Cookstoves replaced the Nairobi event was with

the Growing SMEs East Africa event in Rwanda after the terror attack in Nairobi).

Of the entrepreneurs we worked with in Rwanda, two have signed NDA's with

investors, and one has continued working with BiD Network in looking for

finance.

Enhancing Food Security in the Horn of Africa through diaspora

Investment in Agriculture

In March 2013, BiD Network has signed an agreement with the International

Fund for Agricultural Development (IFAD) to implement a project called

“Enhancing Food Security in the Horn of Africa through Diaspora Investment in

Agriculture Programme” (Project number I-R-1442-BIDNF). The main objective

of the project is to facilitate finance for businesses in the food and agricultural

sector in South-Central Somalia, Somaliland and Puntland. The finance will

primarily come from the Somali diaspora, but also from other investors

interested in business opportunities from these regions. The project should leave

behind a replicable and sustainable structure and intermediaries that can

continue to finance Somali SMEs after the end of the project in 2017.


In 2013, BiD Network, with support of Collert Consulting based in the

Netherlands and in Somaliland, conducted a quantitative survey among 400

Somali diaspora to investigate whether diaspora investors would be willing to

invest in Somali businesses, a question that 88% of the respondents answered

positively. In addition, BiD Network signed a Memorandum of Understanding

with the Dahabshil Bank to explore and design a financing mechanism for Somali

enterprises. The design and testing will start in 2014. In 2014, also a call for

proposals will be launched for start-ups and established businesses in South-

Central Somalia, Somaliland and Puntland and investors will be invited to sign up

for our matchmaking services.

Growing SMEs: Connect. Exchange. Invest.

Growing SMEs is an umbrella matchmaking concept under which different unique

events geared towards access to finance find a place. After several international

editions organized in the Netherlands, from 2011 onwards also regional editions

of the Growing SMEs concept were organized, for instance in Colombia, Rwanda

and Mexico.

Growing SMEs East Africa (Kigali, Rwanda)

Over 400 people attended the second edition of the Growing SMEs East Africa

conference, among which 44 financiers. Of the participants 60% was Rwandan

and 40% from abroad; a total of 27 nationalities from 13 countries were

attending the conference.

During the conference, the first “Get in the Ring” battle took place at which 9

Rwandan entrepreneurs pitched in front of 7 financiers (BRD, BPR, FinaBank,


Business Partners, Grofin, BDF and De Investeerders Club). The investor

marketplace was opened by the Minister of Commerce Dr. Francois Kanimba. At

the marketplace, 34 entrepreneurs from East Africa presented their businesses

to interested investors. This resulted into a total of 21 follow up meetings.

International investor meetings were carried on (with investors that pre-

screened the entrepreneurs and expressed their interest in one to one follow up

meetings), live at the conference, and also through Skype.

In addition to that, 78 speed dating sessions took place at which 14 staff

members of 6 Rwandan banks (Fina, BPR, Equity, KCB, BRD, I&M) met with 17

pre-selected Rwandan entrepreneurs. This added to a total of 78 dating sessions

between banks and entrepreneurs. They exchanged info on their financial

products and requirements and the entrepreneurs got to pitch their businesses.

JCI Rwanda organized a round table on policy issues related on entrepreneurship

and business environment during the Growing SMEs conference. A survey has

been carried out among different financial institutions in Rwanda about the

products they offer in order to be able to give proper advice to entrepreneurs on

what is available in terms of finance in Rwanda.

Growing SMEs was a featured event of the Global Entrepreneurship Week and

embedded in a BiD Network business week for entrepreneurs from different

countries who attended Ready4Finance training sessions, B2B and investor

meetings. In the same week, NABC organized a Dutch trade mission to Rwanda,

facilitating connections between Dutch and Rwandan businesses.

Growing SMEs Latin America (Mexico)

In 2013, BiD Network’s international partner Fundación E decided to dedicate the

year to organizing the Growing SMEs Latin America event. The State of Veracruz

hosted us and several other organizations enthusiastically supported the

initiative. Ten selected entrepreneurs from Argentina, Colombia, Ecuador, Peru

and Mexico were highlighted at the event. Around 1,500 participants joined us

and had the opportunity to attend interesting conference sessions, exchange

propositions, receive advice and make investment connections.


UNITED ENTREPRENEURSHIP COALITION

2013 was the 3rd year in which SPARK and BiD Network collaborated in the

United Entrepreneurship Coalition, a 5 year program funded by the Dutch

Ministry of Foreign Affairs supporting entrepreneurs and business support

centers in Burundi (BBIN), Kosovo (BSCK and BC Zvecan), Liberia (BSC

Monrovia), Palestine (Birzeit University Najjad Zeeni Center of Excellence,

Business and Technology Incubator at the Islamic University of Gaza and

Business Women Forum Palestine) and Rwanda (JCI Rwanda).

In 2013 new trainers of international partners were trained in the Ready4Finance

curriculum, or existing trainers were trained in the more advanced modules. Due

to travel restrictions the training and certification of our partner in Gaza took

place through Skype.


BiD Network also continued to support partners in the area of investor

matchmaking and the establishment of business angel networks. In particular

Birzeit University, BSC Kosovo, BSC Monrovia, BTI and JCI Rwanda have gained

more experience in preparing entrepreneurs for finance and matching them with

investors. In Liberia, an investor trip was organized, which resulted in a

partnership agreement between BSC Monrovia and two funds to utilize BSC

Monrovia’s network for deal flow. In Palestine, Birzeit University established a

partnership with the Arabreneur investment fund and investors network. In

Kosovo, an investor matchmaker was hired by BSCK and BiD Network. In

addition, JCI Rwanda and the Palestinian partners were closely involved in the

organization of events primarily aimed at matchmaking.

National and regional business plan competitions were organized in all countries.

BiD Network and partners organized an ICT Challenge for the five countries and

international partners were involved in the worldwide Women in Business

Challenge. These competitions were supplemented with training and coaching for

entrepreneurs.

In 2013 we have seen a significant increase in the online results in these

countries as compared to earlier years of the program. A limited number of plans

however reached the ready for finance level, where entrepreneurs can access

our investor matchmaking services. Two matches were made in Rwanda and two

matches in Kosovo, for an average investment size of USD 102,000.

At the end of 2013 online groups were developed for the international United

Entrepreneurship Coalition partners of BiD Network.

Highlights in 2013 were the MSME Conference and Investor Trip to Liberia, the

Sharaka Pitching Event in Jordan and the second edition of the Growing SMEs

East Africa conference that took place in Rwanda.

INTERNATIONAL PARTNERS

In 2013 BiD Network collaborated with international partners in several countries

that launched local competitions, organized Ready4Finance and other training

sessions and events for entrepreneurs and investors or that were involved in

investor matchmaking services. International partners from Argentina, Ecuador

and Colombia received no funding for activities from BiD Network anymore, but

entrepreneurs from these counties participated in the Growing SMEs event in

Latin America.


Burundi (United Entrepreneurship Coalition)

2013 proved a good year for BBIN and Burundi with 3 investor marketplaces

organized in Bujumbura and 22 Burundian entrepreneurs attending the Growing

SMEs East Africa conference in Kigali. For the first time ever in Burundi, BBIN

managed 2 online business plan competitions. The international ICT challenge

attracted 49 online applications from Burundi and the SHIKA competition saw

202 entrepreneurs applying.

BiD network trained 4 new

Ready4Finance trainers in the first half of

the year, moreover BBIN staff were

trained on the use of the online platform

and management of competitions, which

resulted in a gigantic increase in the

number of website visits, hits, online

members and online business

applications. These positive

developments were also a fruit of BBIN’s marketing strategy that raised

awareness of their programs and services.

Liberia (United Entrepreneurship Coalition)

BSC Monrovia multiplied its efforts in 2013, they reached out to entrepreneurs

and investors like never before. This was done through a number of different

activities and new programs.

BSC Monrovia provided Ready4Finance training to hundreds of entrepreneurs

through the MSME Conference and within the framework of 4 business plan

competitions. BiD Network certified 4 trainers in Ready4Finance modules. BSC

Monrovia organized a number of workshops and round tables to promote

entrepreneurship, and laid out the milestone for rural entrepreneurship

development by launching the first ever business plan competitions in Harper

and Gbarnga.

Additionally, BSC Monrovia reinforced their efforts in matchmaking by organizing

an investor trip to Liberia which enables international financiers to identify

potential businesses for investment. It is currently facilitating negotiations

between investors and entrepreneurs. During the Global Entrepreneurship Week,

4 Liberian entrepreneurs participated in the Growing SMEs East Africa

conference.

BSC Monrovia has become a landmark for entrepreneurship in Liberia, in 2013 it

partnered with numerous organizations, banks and government bodies to

promote the development of the private sector.

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Rwanda (United Entrepreneurship Coalition)

In September 2013, 37 young entrepreneurs were trained in business planning

using the Ready4Finance training modules. The certification of participants after

business planning completion was on September 15, 2013. 17 out of the 37

young entrepreneurs requested for

further support and an advanced training

was organized on October 18, 2013.

In November 2013, during the Global

Entrepreneurship Week, JCI Rwanda

organized the second East African

edition of the Growing SMEs conference

and BiD Network week, with a “Get in

the “Ring” pitching battle and speed

dating with banks.

Kosovo (United Entrepreneurship Coalition)

BiD Network’s local partners Business Support Centre Kosovo (BSCK) and

Business Centre (BC) Zvecan organized the Kosovo Spring and the Kosovo Fall

Challenge. 270 applications and 64 full business plans were submitted. The

partners trained and coached the participating entrepreneurs. Networking

sessions as well as extensive promotions efforts via newspapers, social media

and flyers made entrepreneurship a big topic in Kosovo. BC Zvecan has found a

matchmaking partner in Mercy Corps through which two entrepreneurs received

USD 66,360 in 2013.

An investor matchmaking project was launched in January 2013 and has started

in September due to a lengthy process of hiring an investor matchmaker. A list

of potential investors has been accumulated to initiate an investor network for

Kosovo.

A new Business-to-Business (B2B) service was piloted by BC Zvecan for North

Kosovar companies being linked to Serbian companies to exchange best

practices and to explore options to establish business relations. BSCK has

provided winners the option to get linked to businesses in The Netherlands, a

very attractive offer for Kosovar companies to realize business growth.

Palestine (United Entrepreneurship Coalition)

In Palestine BiD Network worked with the Business Women Forum Palestine

(BWF), the Birzeit University Center of Excellence and the Business and

Technology Incubator of the Islamic University of Gaza (BTI).

BWF conducted two business plan competitions for women entrepreneurs. In

May, BWF's competition was selected by the European Training Foundation as

one of the world's best practices to encourage entrepreneurship and build the


capacities of female entrepreneurs.

Birzeit University conducted one business plan competition. BiD Network further

supported the center in exploring the opportunities to set up a local investor

network. This resulted in an agreement between Birzeit University and Mena

Apps to launch a $1 M venture capital investment fund and a related Business

Angel Network. 8 entrepreneurs from the university network were trained to

pitch their plan to the fund management. They will be supported to become

finance ready in 2014.

In the second half of the year, 5 staff members of the Business and Technology

Incubator at the Islamic University in Gaza started the process to become

certified trainers of advanced Ready4Finance courses. Due to travel limitations,

the training was conducted via Skype and will be concluded in the beginning of

2014.

To introduce Palestinian entrepreneurs to investors, BiD Network, together with

her Palestinian partners and the Business Development Center in Jordan,

organized a pitching event in Amman during the Global Entrepreneurship Week

in November. Each partner selected and supported 2 entrepreneurs to pitch at

this event. Entrepreneurs from BWF and BZU participated in training and

networking sessions around the event.

Due to the relatively limited applicability of BiD Network services in the local

context, BiD Network has decided to discontinue its advisory services and

financial support to partners in the Palestinian Territories from 2014 onwards.

BiD Network will offer the partners their own group on bidX and will continue to

offer matchmaking services to viable businesses. Partners will also stay involved

in the promotion of the 5th edition of the Women in Business Challenge.

Tanzania

Our partner SEED has participated in preparing entrepreneurs for the Growing

SMEs East Africa conference, worked on establishing a business angel network

for Tanzania and has established a local coaching network counting 18 verified

coaches to assess business plans out of 124 applicants. SEED has been a strong

partner for the Women in Business Challenge and has conducted BiD Network’s

Ready4Finance training for entrepreneurs.

Uganda

In Uganda BiD Network’s partner IRIS continued to offer consultancy and

training services to its network of entrepreneurs. Two radio talk shows were

organized at which business opportunities and risks were discussed. The BiD

breakfast grew into a signature event with attendance numbers growing to

between 15 and 30. One of the breakfasts was attended by a business angel

from The Netherlands. IRIS has been included in the mentoring program of


Enterprise Uganda/ Youth Business International. Specific training sessions on

tax were organized in collaboration with the Uganda Revenue Authority.

Peru

Our partner Instituto Invertir has conducted a Peru wide roll out of the

Ready4Finance training program called Ignite. In this program, entrepreneurs

are trained and different revenue models are tested, aiming to make this a

sustainable SME service for Invertir. The main objectives of the program are to

generate entrepreneurial capabilities and encourage entrepreneurship in Peru; to

generate business capabilities in early-stage businesses; to connect SMEs with

investors, clients or potential relevant partners to their business development;

and to generate an SME-oriented training model that can be replicated.

During the first half of the project a total of 268 entrepreneurs and SME owners

have been trained during 63 training hours in Lima, Piura, Chiclayo and Trujillo.

So far Invertir charged participants an average of EUR 24.76 for 3 hours of

training. The training sessions have resulted in the start of 2 businesses and 14

strategic alliances.

Philippines

Our partner PBSP mainly focused on investor matchmaking services for previous

BiD Challenge Philippines participants. This has resulted in new investment

partnerships and in 3 investor matches, whereas a few more are expected in

2014. In addition PBSP spend time on extensive monitoring of all businesses

supported. No competition has been organized in 2013, but preparations have

taken place to launch a Water Challenge in 2014.

Jordan

In the beginning of the year, the Business Development Center (BDC) Jordan

actively promoted the Women in Business Challenge.

Building upon the earlier established contact with BiD Network's partners in

Palestine, BDC took on the challenge to organize a pitching event for Palestinian

and Jordanian entrepreneurs in Amman. BiD Network and BDC intensively

worked together in the build-up for this event. In order to select entrepreneurs,

BDC successfully ran a business plan competition, resulting in an increase of

business applications from Jordan. BiD Network advisors conducted a

Ready4Finance Pitching and Types of Investment training to prepare the

selected entrepreneurs.

Mexico

In 2013, BiD Network’s Mexican partner Fundación E dedicated the year to

organizing the Growing SMEs Latin America conference in Veracruz.


GOVERNANCE AND ORGANIZATION

In February 2013 a restructuring of the organization took place that resulted in

the integration of bidX and BiD Network processes for sales and fundraising,

online and offline service development, project implementation and finance and

operations. This led to a more effective steering of the online services

development and better use of strategic funds.

When it became clear that income generation on online service development was

not likely to be generated before 2014, a second necessary restructuring,

including significant cost management measures, took place in June 2013. As a

result several staff and free-lance staff members were laid off, in particular in

the field of service development. Staff capacity for the delivery of contracted

projects was maintained in line with projects’ needs. At the end of the year it

was also decided to continue with only one director.

Transparency and efficiency

BiD Network receives funds from donors and other parties. In these relationships

trust plays an important role. We operate in a professional manner and report

transparently about when and where we spend the funds granted to us. BiD

Network strives to work as efficient as possible while executing all tasks and

activities.

Internal monitoring

All project managers monitor their projects periodically. In these evaluations

they closely look at real versus planned costs. If real costs are higher than

planned, project managers will aim to reduce other project costs. Periodically,

project managers report to the Board of Directors about the status and progress

of their projects. Each month, management reports are shared and discussed

within the Board of Directors and with the BiD Network staff. On a quarterly

basis, the Board of Directors reports to the Supervisory Board about programs

and results. The Supervisory Board oversees and is accountable for the overall

organizational objectives and results and monitors the efficiency of operations.

Project partners

Projects are being executed by internal specialists and/or project partners. In

the development phase of a project we look closely at how to achieve the best

results possible and who can execute which activities. BiD Network uses project

partners for the execution of several, mainly international projects. When

choosing a project partner, BiD Network first evaluates the capacity of the

partner. Rights and obligations are written down in a partnership agreement

between BiD Network and the partner. In this agreement, a reference to the

sanction, anti-corruption and anti-fraud policies of BiD Network is included.


Sanction policy

BiD Network’s partnerships are based on collaboration and equality. All

agreements have to be approved by both parties and collaboration entails rights

and obligations. The sanction policy of BiD Network contains procedures and

actions to be undertaken when project partners do not honor the signed

agreement. Sanctions can be taken when:

There is considerable doubt about fraud or corruption with or by the

project partner;

The partner organization has not fulfilled or not met one or more of the

conditions mentioned in the agreement, such as timely reporting on

program and financial results, quality of reports, etc.

The results lack behind due to underperformance by the project partner.

In 2013 BiD Network has not inflicted any sanctions to one of the project

partners.

Anti-fraud and anti-corruption policy

BiD Network keeps high standards with regards to our accountability. To meet

these high standards it is important to have clear guidelines for all employees

and volunteers on how to act when fraud is being detected or considerable doubt

exists about fraud and/or corruption. BiD Network maintains a ‘zero tolerance’

policy when it comes to fraud and corruption. Employees and volunteers must

act honestly and with integrity. The anti-fraud and anti-corruption policy includes

responsibilities for all employees on how to act when fraud or corruption is

detected.

In 2013 there were no incidents reported about fraud or corruption.

HR policy and operations

At the beginning of 2013 a light 360 degrees feedback process for evaluation

and learning was introduced and appreciated by Board of Directors and staff.

Staff development was planned in accordance with the organizational

development. Many staff members had ambitions and activities scheduled, and

together with the organization they invested in sales, investor matchmaking,

strategy development and HR legal administration. Development was largely

done on the job with support from external experts. Two staff members enjoyed

external training at the Rotterdam School of Management and ISBW.

The staff policies of BiD Network were reviewed and integrated with bidX’ staff

policy.

In the course of 2013 there has been a decrease of 2 FTEs, from 16.5 FTE to

14.5 FTE. At the end of 2013, BiD Network employed 11 people, of which 9

women and 2 men. Most staff members employed part-time.


2013 2012

Total employees end of year 11 20

Average number of FTE staff 14.5 16.5

In 2013, two staff members were posted in Rwanda. The other staff members

were based at BiD Network’s headquarters in Amsterdam, The Netherlands.

They did however frequently travel to the different countries in which BiD

Network operates.

BiD Network works together with 1,795 voluntary coaches.

Absence through illness

The absence due to illness was 6.99% higher than in 2012 (2.23%). This was

caused by two pregnancies and a long term illness. This has had a considerable

impact on the organization. The employee concerned has started a reintegration

program. The absence due to illness excluding pregnancies was 3.76%. This was

1.82% higher than the previous year (1.94%).

Organogram 2013

ACCOUNTABILITY

BiD Network’s governance structure consists of a Board of Directors responsible

for the day-to-day operations, reporting to and supervised by a Supervisory


Board. The Supervisory Board is responsible for overseeing the operations,

budget and plans of the foundation.

Board of Directors

In 2013, the Board of Directors of BiD Network consisted of one director

responsible for business and service development and one director responsible

for delivery and operations. Due to long term illness of one the directors an

interim director was appointed in January 2013. Per January 2014, BiD Network

will continue with one director.

Name Function Start date End date

Thierry Sanders Director business and service

development

01-01-2008 21-01-2014

Cily Keizer Director delivery and operations

01-06-2010 31-12-2013

Hendrik van Gent Interim director delivery and

operations

09-01-2013 11-12-2013

Hendrik van Gent Director 11-12-2013

Thierry Sanders

Thierry Sanders founded BiD Network in 2004, while being a program manager

at NCDO, a Dutch expertise and advisory center for citizenship and international

cooperation. He also founded Unseenproducts bv, the Dutch Design in

Development Foundation, the www.mdgscan.com and published the first guide

to Venture Capital for SMEs in developing countries. Prior to that he was general

manager of EcoSecurities plc., the world’s largest carbon trading company. He

served as a partner in several CSR consultancy firms. Thierry Sanders was

business developer of BSO-Origin (Atos-Origin) in Asia and in The Netherlands,

and implemented an ERP system at Fair Trade Original and Oxfam-Novib. He

started his career as a research officer at the Institute for Development Studies,

University of Sussex, UK.

In 2013, Thierry Sanders was also director of bidX, of which BiD Network was

major shareholder, as well as advisor to the Board of the Putera Sampoerna

Foundation.

Cily Keizer

Cily Keizer has been director of BiD Network since 1 June 2010. She brought BiD

Network a wide range of international experience in Asia (Nepal, Bhutan, Laos,

Cambodia), Africa (Ghana) and Latin America (Peru, Ecuador), as well as

extensive management experience in running multi-sector development

programs that have strong private sector development and capacity building

focus.

http://www.mdgscan.com/


Before joining BiD Network, Cily was director at Wemos, a Dutch Development

Foundation that works in the health sector. Prior to that, she worked for SNV

Netherlands Development Organizations for over 17 years, holding various

country director, managerial and advisory positions. She was responsible for

programs in the field of SME development, sustainable pro-poor tourism, micro

finance, renewable energy such as biogas, and value chain development of

agricultural and forest products.

Hendrik van Gent

Hendrik joined BiD Network in January 2013 as ad interim director Delivery and

Operations. Before starting at BiD Network, Hendrik worked with War Child

Holland from April 8, 2004 till May 1, 2013. During this time Hendrik held

different positions such as Program Manager, Marketing Manager ad interim,

Innovation Manager and was ad interim CEO between February and June 2012.

In 2013 Hendrik was also advisor for the social and sustainable investor

community BizzyBees.

Remuneration of directors

The salaries of the directors of BiD Network are based on the “Adviesregeling

Beloningen Directeuren van Goede doelen”, as drafted by the branch

organization VFI (Vereniging Fondsenwervende Instellingen). Based on these

guidelines, BiD Network has placed the function of director in a scale with a

maximum salary of EUR 98,257. The gross salary of Thierry Sanders in 2013

was EUR 48,908 (based on a part time contract of 50%, including holiday

allowances), falling within these boundaries. The gross salary of Cily Keizer in

2013 was EUR 92,200 (based on a full time contract, including holiday

allowances), falling within these boundaries. The gross salary of Hendrik van

Gent in 2013 was EUR 36,169 (based on a part time contract of 40%, including

holiday allowances), falling within these boundaries. The employment terms for

the function of director also comply with the framework as stated by the Dutch

Code for good Governance.

Supervisory Board

The by-laws of BiD Network clearly describe the separation of duties, tasks and

responsibilities between management and supervision.

BiD Network greatly values a transparent and dedicated cooperation between

the Board of Directors and the Supervisory Board. The Board of Directors

prepares the Supervisory Board meetings. At the meetings it informs the

members of the Supervisory Board about all important developments within the

organization and updates the Supervisory Board on the latest state of affairs

with regards to the implementation of the year plan, enabling the Supervisory

Board to supervise activities and results in the light of the policy laid out.

Information is provided via quarterly reports. In the fall of every year the Board

of Directors and Supervisory Board together work out the structure for the next


year plan. Before the end of the year the plan is finalized. Every year, the

Supervisory Board verifies and approves the annual financial report. Questions

the Supervisory Board may have about the implementation of the annual plan

are discussed with the Board of Directors. The Supervisory Board may also

suggest policy changes. Annually the Supervisory Board evaluates the

performance of the members of the Board of Directors.

The most important tasks of the Supervisory Board are the appointment of the

members of the Board of Directors, supervising their performance and the

overall performance of BiD Network. The Supervisory Board actively contributes

to the development of the vision and the long term strategy of the organization.

It monitors to what extent the organization follows its mission and achieves the

planned results, and watches the efficiency and effectiveness of how the

organization is managed.

The Supervisory Board is structured in such a way that continuity of membership

is assured, while simultaneously it allows for ongoing renewal. Supervisory

Board members are appointed for three years and can be reappointed one

additional term. To safeguard its professional and ethical standards, the

Supervisory Board has drafted a Supervisory Board profile, specifying

composition, competences required, professional backgrounds and expertise

needed. This profile serves to benchmark to evaluate qualifications and

performances of individual Supervisory Board members on a regular basis.

In 2013, the Supervisory Board held 8 meetings. In addition to monitoring the

progress of BiD Network’s operations against its year plan, other important

topics were:

Verification and approval of annual accounts and annual report 2012;

Evaluation of staff capacity and restructuring of BiD Network;

Sale of the bidX shares.

The Supervisory Board members have not received any remuneration apart from

a maximum reimbursement of expenses of EUR 200 per member per

Supervisory Board meeting.

In 2013 the Supervisory Board consisted of:

Name Portfolio In Board

since

End of 2nd

term

Maarten van Dijk -

Chairman until 18

September 2013

Remuneration

Committee

23 April 2008 22 April 2014

Paul van Aalst - Remuneration 11 March 2009 10 March 2015


Chairman ad interim

per 18 September

2014

Committee

MFSII

Alef Arendsen bidX supervisory

board

10 June 2010 9 June 2016

Herman Snelder 01 January

2013

31 December

2018

Henk van Stokkom Audit Committee

MFSII

01 January

2013

31 December

2018

Ruud Nijs Audit Committee

bidX supervisory

board

01 January

2013

31 December

2018

Maarten van Dijk

Maarten van Dijk is the founding partner of Victoria Lofts/Sequoia Residences –

a luxury real estate developer, specialized in industrial monuments. He also

owns Sarah Holding, a holding company for activities relating to consultancy,

training programs and investments, and is a partner in restaurant Brasserie NL,

with top-chef Ruben van Dieten.

He is also member of the Board of trustees for the KFI Kilimanjaro Film Institute,

and member of the Advisory Committee of Extra Talent bv.

Paul van Aalst

Paul van Aalst is managing director of SOVEC, an investment fund set up by

Dutch entrepreneurs to invest in SMEs in Africa in partnership with local

investment partners. Until February 2012 he was director of a clean energy

investment company providing business development services and investment

capital to small and growing clean energy enterprises in Africa, Asia and Central

America. He was also a member of the supervisory board of IKV Pax Christi until

the end of April 2012.

Alef Arendsen

Alef Arendsen is the founder of The New Motion, a company that aims to

eradicate fossil-fuel usage for personal transport through the promotion and

provision of charging services for electric vehicles. He founded a further two

successful companies; JTeam bv and SpringSource. These were both sold in

2009.

Herman Snelder

Herman Snelder is the director and owner of MDF Training and Consultancy.

MDF is a global training and consultancy agency, with over 25 years of

experience in international co-operation. Before founding MDF, Herman worked

as project manager for COOPIBO (BE) in DR Congo and Rwanda.


Herman is also member of the Think Tank on the Rhineland model for different

ways of organizing enterprises with a focus on trust, relations and

craftsmanship. Businesses are considered part of and parcel society.

Henk van Stokkom

Henk van Stokkom is founder and owner of DoenDenkers since 1995. He acts for

and on behalf of charitable trusts and high net worth individuals in the area of

donations policy and responsible investing (management & implementation).

In 2013 Henk van Stokkom was also member of the Supervisory Board of

Stichting Liliane Fonds, member of the Board of Advice of the Karuna Foundation

and board member of the Sint Antonius Stichting.

Ruud Nijs

Ruud Nijs co-founded TheRockGroup in 2012. TheRockGroup uses a pragmatic

(‘make it work’) approach to offer tailor-made solutions for mainstreaming

sustainability in corporations and organizations, commercializing young ventures

(mainly by offering Corporate Finance solutions), and creating solutions for

complex societal issues. He worked as Director of Corporate Social Responsibility

and Executive Vice President of Financial Logistics at Rabobank, as Managing

Director for Europe, the Middle East and Africa at Fair Isaac and HNC Software,

and as Senior Executive Vice President at ABN AMRO. He is also Board member

for the Society for International Development Dutch Chapter (SID) and is

member of several (regional) investment committees.

Audit committee

As a committee within the Supervisory Board, the audit committee monitors the

functioning of internal planning, control and risk process and BiD Network´s

financial management, following the by-laws for the audit committee.

Selection, Appointment and Remuneration Committee

As a committee within the Supervisory Board, the Selection, Appointment and

Remuneration (SBRC) Committee is responsible for proposing the selection,

appointment and remuneration criteria for the Board of Directors and

Supervisory Board and the monitoring of their performance of management and

supervisory board, following the by-laws for the SBRC committee.

FORECAST 2014

In 2014, BiD Network will focus on delivering matchmaking results through our

projects funded among others by the Dutch Ministry of Foreign Affairs, IFAD, the

Dutch Postcode Lottery and IFC. Based on the efforts and results in 2013, a

targeted matched amount of USD 4 million is set. Services will be more tailored

towards meeting investors and the financing of smaller SMEs in the missing

middle, for which it is more difficult to access finance.


BiD Network will benefit from cost restructuring and the sale of its daughter

bidX, allowing the organization to work more effectively and more efficiently and

to become financially much healthier with a budgeted positive result of

EUR 383.700 (see budget). There are no special expenses foreseen in 2014 for

VAT and repositioning of BiD Network.

New business has come from the International Fertilizer Development Centre

(IFDC) and a number of proposals are being presented to donors and clients.

The organization has a temporary negative equity position per 31 December

2013, due to the restructuring of BiD Network and the expected expenses of the

Bidx10 project, of which income was accounted in 2011. The liquidity forecast

for 2014 confirms that no liquidity problems are foreseen in 2014, despite the

negative equity position at 31 December 31 2013. This is mainly because

contractual payments for various projects are received in advance. BiD Network

will be able to meet all grant obligations.


FINANCIAL REPORT 2013

RESULT

The result for 2013 is EUR 1.3 million negative (as compared to EUR 1.0 million

negative in 2012). The budgeted result was EUR 186,300 positive. In 2013, the

following additional costs have led to a negative result:

Grant bidX for project BiDx10 EUR 714,505 (*)

Sales tax adjustment 2010 to 2013 EUR 168,500

Integration BiD Network and bidX EUR 90,100

Investment in matchmaking EUR 88,600

Severance payments related to restructuring EUR 81,500

Other additional costs EUR 80,000

Additional costs caused by ill employee EUR 42,500

Total EUR 1,265,705

*) In 2011, BiD Network received a grant from Dutch Postcode Lottery for the

project BiDx10. The subsidy was fully received and recorded as income in 2011

and spent in 2012 and 2013. The amount unspent in 2011 and 2012 was EUR

714,505 on 31 December 2012. In 2013, the project has been completed.

Through the appropriation of the result, the project costs will be withdrawn from

the allocated funds “BIDx10”. The other costs will be further elucidated herein

below under expenditure.

Income

BiD Network’s total income increased from EUR 2.2 million in 2012 to EUR 2.8

million in 2013. This is EUR 0.5 million higher than the budgeted income of EUR

2.3 million. The increase is mainly explained by a grant received from the IFC

coalition. The G20 project funded by the IFC coalition was mainly carried within

the services of bidX.

Own fundraising

BiD Network’s own fundraising increased from EUR 0.2 million in 2012 to EUR

1.1 million in 2013. The increase is mainly caused by a grant received from the

IFC coalition. Compared to the budgeted own fundraising, realized own

fundraising was EUR 0.6 million higher. The 2013 budget did not include the IFC

coalition grant.

Efforts of thirds

The income received in 2013 by efforts of thirds amounts to EUR 539,000. This

is more or less the same as last year and as the amount budgeted for 2013. The

Dutch Postcode Lottery decided in 2011 to grant BiD Network an annual amount

of EUR 500,000 for a period of five years. The 2013 grant was received as

agreed.


Government subsidies

The income from government subsidies compared to last year decreased by

16.8% from EUR 1.3 million to EUR 1.1 million. The realization is equal to the

budget. The year 2013 was the third year of the MFSII program funded by The

Dutch Ministry of Foreign Affairs.

Other

Other income received amounts EUR 126,000. This is more or less the same as

last year as well as the amount budgeted for 2013.

Expenditure

The total spending increased with 72% from EUR 2.4 million in 2012 to EUR 4.1

million in 2013. An overview including the specification and distribution of costs

to the BiD Network objective can be found in the financial statements. Compared

to the budgeted expenditure of EUR 2.1 million, in 2013 BiD Network spent EUR

2.0 million more than budgeted.

In 2013, EUR 3.8 million was spent directly on the organization’s objective. This

is 134% of the total income. In the previous year, 97% of the total income was

directly spent on BiD Network’s objective.

The amount of grants and contributions provided to our national en international

partners, increased from EUR 0.3 million in 2012 to EUR 1.9 million in 2013.

Compared to the budgeted amount of EUR 0.3 million, this is EUR 1.6 million

higher. The increase is mainly caused by two grants to bidX. These grants were

received from the Dutch Postcode Lottery and the IFC coalition, for two different

projects.

In 2013 the organization has invested extra in matchmaking for an amount of

EUR 88,600.

Also the organization has decided to integrate BiD Network and bidX services.

This integration aimed to offer integrated solutions to donors and customers with

bidX online platform through a so called eco-system proposition. The costs of

this integration were EUR 90,100.

In 2013, we remained well below the by CBF recommended fundraising costs

percentage of total costs of 25%. In 2013 we spent EUR 41,700 on own

fundraising, which is 4% of the income realized by own fundraising (as

compared to 20% in 2012). The organization aims to allocate funds received as

much as possible to the main objectives of the organization and to keep any

costs relating to the acquisition of income as low as possible.

The costs of management and administration increased from EUR 168,000 in

2012 to EUR 273,000 in 2013. The increase was mainly due to the increase in


staff costs related to the strategic changes and the preparation of the spin-off of

bidX, as well as to temporary replacement of senior staff on sick leave.

Due to the negative result at the end of 2013, BiD Network’s equity position on

31 December 2013 was EUR 352,000 negative. The reorganization and strategic

changes in 2013 must ensure that a positive equity position can be achieved

again. The Supervisory Board and Board of Directors have decided that a small

continuity reserve will be rebuilt over time, and that the majority of funds can

be allocated to the objectives of the organization.

In 2013 a repositioning has taken place. This repositioning has led to a

restructuring of the organization which made 11 employees redundant.

Severance payments made related to the reorganization amount to EUR 81,500.

In 2013 the tax authorities have ruled that it was not allowed to deduct the

complete amount of advance taxes. Over the period of 2010 until 2013 only

21% of the advance taxes could be deducted. In total BiD Network had to repay

an amount of EUR 248,500 to the tax authorities.

BALANCE

Securities and cash

The Supervisory Board together with the Board of Directors have decided to

make the funds BiD Network received available for projects for which

expenditure depends on the progress, which is less secure than transferring it to

a deposit or savings account. Periodically, the Supervisory Board evaluated the

liquidity position.

Equity

Due to the negative result at the end of 2013, BiD Network’s amount of equity

on 31 December 2013 was EUR 352,000 negative. The reorganization in 2013

must ensure the recovery of a continuity reserve in 2014 to ensure

organizational stability for the future. The Supervisory Board and Board of

Directors have decided to ensure the availability of a small continuity reserve in

future, so that the majority of funds can be allocated to the objectives of the

organization. The continuity reserve is meant to cover short term risks and to

guarantee that the organization can fulfill its long term obligations. The

organization aims to build a continuity reserve that will cover a maximum of

50% of the organization’s fixed operational costs. According to the CBF norm the

continuity reserve may not exceed 1.5 times the annual costs of the work

organization.

In 2014, the Supervisory Board and Board of Directors will reanalyze the

organization’s risks, and the period which they intend to cover in the analysis.

On the basis of this analysis, specific risks will be controlled or closed.


Following year overview

Our results over the past years are summarized in the following year overview:

Realization

2013

Realization

2012

Realization

2011

Income 2,810,400 2,229,600 3,910,200

Spent on objective 3,772,600 2,165,100 2,010,000

CBF % 3.8% 20.0% 25.1%

Spending % 134.2% 97.1% 51.1%

Consolidated figures BiD Network and bidX

The annual report 2012 included an annex of the consolidated figures of BiD

Network and bidX. It has been decided not to consolidate the figures for 2013,

because all bidX shares of BiD Network will be sold in 2014. This decision was

made in 2013.


BUDGET 2014

(All amounts are in Euro)

Budget 2014 Real 2013

Own fundraising 1.055.100 1.067.785

Efforts of thirds 500.000 539.500

Government subsidies 748.000 1.078.638

Other income 40.000 128.563

Interest Income 0 (4.049)

Total income 2.343.100 2.810.436

Spent on objective 1.797.200 3.772.577

Costs of own fundraising 22.300 40.302

Costs for obtaining income from efforts of thirds 2.000 437

Costs obtaining government subsidies 1.700 0

Costs obtaining other income 300 0

Spent on fundraising 26.300 40.739

Management and administration 66.500 272.966

Total expenditure 1.890.000 4.086.283

RESULT 453.100 (1.275.846)


FINANCIAL STATEMENTS

Balance sheet after appropriation of result as per 31 December 2013


ASSETS

Tangible fixed assets

Tangible fixed assets 18.452 27.299

Financial fixed assets

Financial fixed assets 0 0

Loan granted (group company) 0 505.000

0 505.000

Current assets

Receivables 58.971 71.574

Prepayments 2.460 58.722

VAT receivables 0 83.636

Cash and bank balances 104.241 584.763

165.672 798.695

TOTAL 184.124 1.330.994

LIABILITIES

Reserves and funds

General reserve (351.928) 209.413

Allocated funds 0 714.505

(351.928) 923.918

Short term liabilities

Creditors 87.029 73.376

Taxes and social security 141.158 28.817

Commitments to international partners 27.695 30.750

Early receipts 157.217 201.805

Other short term liabilities 122.953 72.328

536.052 407.076

TOTAL 184.124 1.330.994

31-12-2013 31-12-2012


Statement of Income & Expenditure 2013


Real 2013 Budget 2013 Real 2012

Own fundraising 1.067.785 510.522 227.206

Efforts of thirds 539.500 539.500 517.500

Government subsidies 1.078.638 1.056.188 1.296.816

Other income 128.563 120.466 145.234

Interest income (4.049) 25.000 42.872

Total income 2.810.436 2.251.676 2.229.628

Spent on objective 3.772.577 1.904.400 2.165.067

Costs own fundraising 40.302 31.500 38.584

Costs obtaining income from efforts of thirds 437 2.800 3.410

Costs obtaining government subsidies 0 2.400 2.937

Costs obtaining other income 0 400 490

Spent on fundraising 40.739 37.100 45.421

Management and administration 272.966 123.859 168.195

Total expenditures 4.086.283 2.065.359 2.378.683

RESULT FROM OPERATIONAL ACTIVITIES (1.275.846) 186.317 (149.055)

RESULT ON INVESTMENT 0 0 (882.000)

RESULT (1.275.846) 186.317 (1.031.055)

Appropriation of result

General reserve (561.341) (44.055)

Allocated funds Banks & Angels 0 (105.000)

Allocated funds BiDx10 (714.505) (882.000)

(1.275.846) (1.031.055)


Cash Flow Statement 2013


2013 2012

Cashflow from operational activities

Result (1.275.846) (1.031.055)

Depreciation tangible fixed assets 8.847 9.221

Devaluation financial fixed assets 0 882.000

Conversion loans into grant 719.505 0

Gross cashflow from operational activities (547.494) (139.834)

Changes in current assets and receivables 152.501 (302.460)

Changes in current liabilities 128.976 240.439

Net cashflow from operational activities (266.017) (201.855)

Changes in tangible fixed assets 0 (14.070)

Changes in financial fixed assets 0 (882.000)

Cashflow from investment activities 0 (896.070)

Changes in loan granted to group company (214.505) (305.000)

Cashflow from financing activities (214.505) (305.000)

Changes in cash and cash equivalents (480.522) (1.402.925)

Cash and cash equivalents beginning year 584.763 1.987.688

Cash and cash equivalents end year 104.241 584.763

Changes in cash and cash equivalents (480.522) (1.402.925)


ACCOUNTING PRINCIPLES FOR FINANCIAL REPORTING

The financial statements have been drawn up in accordance with Dutch

Accounting Guidelines, in particular Guideline 650 for Dutch Charities and

Fundraising Organizations (‘richtlijn 650 voor fondsenwervende instellingen’).

Valuation of assets and liabilities and determination of the result are calculated

under historical cost convention. Unless presented otherwise at the relevant

principle for the specific item, assets and liabilities are valued according to the

cost model.

Income and expenses are accounted for on accrual basis. Profit is only included

when realized on the balance sheet date. Losses originating from before the end

of the financial year are taken into account if they were known before

preparation of the financial statements.

The comparative figures have been reclassified to the new presentation. This

does not affect the results or equity position of BiD Network.

Financial year

The financial year runs from 1 January to 31 December.

Currency

All amounts are expressed in Euro.

Consolidation Exemption

At the end of 2013, BiD Network Foundation has a 59% shareholding in bidX

with whom it forms a group company. Because the group company meets the

requirements of a so called “Small Company” (art. 2:396 lid 1 BW), the

Consolidation Exemption (art.2:407 lid 2 BW) is applied.

Principles of valuation of assets and liabilities


Tangible fixed assets are presented at cost less accumulated depreciation and, if

applicable, less impairments in value. Depreciation is based on the estimated

useful life of 5 years and calculated as a fixed percentage of cost, taking into

account any residual value. Depreciation is applied from the date an asset comes

into use.


Where significant influence is exercised, participations in companies are valued

according to the net asset value method, but cannot be lower than a nil value.

The net asset value is based on the accounting principles as applied by BiD

Network.

Reserves and funds

The equity of the foundation is in place for the organization to achieve its

objectives. The equity is divided into reserves and funds. The difference between

earmarked reserves and earmarked funds is that earmarked reserves are


decided upon by the Supervisory Board, upon recommendation by the Board of

Directors, whereas earmarked funds exist because third parties have prescribed

a destination for the funds. The reserve within BiD Network consists of the

general reserve.

Liabilities

Long-term borrowings, if applicable, and current liabilities are stated at nominal

value. Debt claims are determined at their nominal value minus the expected

inability of repayment.

Principles of determination of results

Income and expenses are accounted for in the profit and loss account at the

time of supply of the relevant goods or services. Results are determined by the

difference between income and expenses for the financial year.

(Government) grants and other donations

Grants and donations are included in the result in the year in which the

subsidized or donated expenses are realized.

Principles of determination of the cash flow

The cash flow is drawn up based on the indirect method.

RJ 650 – Allocation to objective, fundraising and overheads

BiD Network drew up its financial statements according to the Dutch National

Annual Reporting guidelines called the “RJ 650 Guidelines” for Dutch charities

and fundraising organizations. From 2010 onwards, the cost centers used in the

bookkeeping were adjusted to cater for the RJ 650 Guidelines. This implies that

all costs have been divided over the following cost centers:

Objective – the objective of the foundation as per articles of association is

to stimulate entrepreneurship in emerging markets; therefore all activities

are geared towards preparing entrepreneurs to access finance. This

includes the sourcing of business ideas, supporting entrepreneurs in

business planning, coaching entrepreneurs, advising international partners

and supporting and matching ready for finance entrepreneurs with

investors. This all falls under the one objective of preparing emerging

market entrepreneurs to access finance.

Fundraising – which is subdivided into:

o Costs of direct fundraising, e.g. persons or organizations who

donate directly;

o Costs of fundraising from fundraising organizations, e.g. from the

Dutch Postcode Lottery;

o Costs of fundraising for government subsidies, e.g. from the Dutch

Ministry of Foreign Affairs;


o Other fundraising costs, e.g. from savings, investments and capital

gains.

Management and administration

In 2013, 92% (2012: 91%) of all expenses were related to the objective,

1% (2012:2%) to fundraising and 7% (2012: 7%) to management &

administration.

Value Added Tax (VAT) Liabilities

In 2010, the Dutch Tax and Customs Administration (‘Belastingdienst’) ruled

that BiD Network is VAT liable for its activities. From then on VAT was

administered for all expenses and deducted, and VAT was calculated on the

income components which are subject to VAT. During 2013, the Dutch Tax and

Customs Administration declared that the Foundation is not subject to VAT. At

the end of 2013 the Dutch Tax and Customs Administration decided that 21% of

the VAT was deductible.


NOTES TO THE BALANCE SHEET




In 2011, BiD Network acquired 55% of the shares in bidX, a company which

develops and utilizes a web platform to enable entrepreneurs to start and grow

their businesses and find suitable investors. The purchase value was EUR

18,000, but because of the negative result of bidX for its first financial year, the

shareholding was devalued to nil.

In 2012 additional shares were acquired, which resulted in a final majority

shareholding of 59%. Although the foundation paid an acquisition price of

EUR 882,000 for the expansion of the shareholding in 2012, the financial fixed

assets are valued at nil, because of the negative result of bidX for both in 2012.

The financial fixed assets are valued at nil at the end of 2013 because bidX’s

equity position on 31 December was negative.

In 2013, the decision was taken to sell the bidX shares. The negotiations on this

subject started in 2013. Formally the sales took place on 23 January 2014.

Tangible fixed assets Buildings Inventory Computers Total

Purchase value 1 January 2013 12.793 29.358 81.714 123.865

Cumulative depreciation 1 January 2013 12.793 17.629 66.144 96.566

Book value 1 January 2013 0 11.729 15.570 27.299

Mutations 2013

Depreciation 2013 0 3.622 5.225 8.847

0 3.622 5.225 8.847

Purchase value 31 December 2013 12.793 29.358 81.714 123.865

Cumulative depreciation 31 December 2013 12.793 21.251 71.369 105.413

Book value 31 December 2013 0 8.107 10.345 18.452

Financial Assets 2013 2012

Balance at 1 January 0 0

Acquisition 0 882.000

Devaluation 0 (882.000)

Balance at 31 December 0 0


Loan granted (group company)

The loan granted to the group company consists of two loans granted to bidX,

and the interest income for the year of 5.6%. The loans are subordinated and

convertible. Thus in time, under the condition that the Supervisory Boards of

both shareholders explicitly supply their written approval, the loans can be

transferred into equity capital.

The loans granted by BiD Network to bidX ere for the purpose of the projects

“BiDx10” and “IFC”. At the end of 2013 it was decided to convert the loans into

grants. The financing of these loans was also received by BiD Network as grants

from the funders of these two projects.

Loan Granted (group company) 2013 2012

Balance 1 January 505.000 0

Loan granted regarding project "BiDx10" 214.505 500.000

Loan granted regarding project "IFC" 891.168 0

Interest receivable 0 5.000

Conversion into grant "BiDx10" (719.505) 0

Conversion into grant "IFC" (891.168) 0

Balance 31 December 0 505.000


Current Assets

The cash and bank balance are freely available.

Reserves and funds

The company had a temporary negative equity position per 31 December 2013,

due to the restructuring of BiD Network and the expected expenses of the

project BiDx10 which income was accounted for in 2011. The liquidity forecast

for 2014 confirms that no liquidity problems are foreseen in 2014, despite the

negative equity position on 31 December 2013. This is mainly because

CURRENT ASSETS 31-12-2013 31-12-2012

UN Foundation 19.487 0

bidX 19.015 0

SPARK, MFSII 5.795 0

SPARK, other 0 7.500

Nationale Nederlanden, pension contribution 5.049 5.630

ASN bank, interest 4.100 28.353

Aureus 3.000 0

IRIS 400 0

ING, interest 222 0

NCDO 0 7.000

Sampoerna 0 18.849

Other 1.903 4.242

Receivables 58.971 71.574

Birzeit University Center of Excellence 0 14.925

BBIN 0 16.464

BSCK 0 3.914

BC Zvecan 0 3.142

BSC Monrovia 0 2.448

JCI Rwanda 0 5.286

SEED 0 6.293

IRIS 0 6.250

Other 2.460 0

Prepayments 2.460 58.722

VAT receivable 0 83.636

Cash BiD Network - EUR 159 8.385

Cash BiD Network - USD 383 0

Cash BiD Network - RWF 0 192

Bank ING Main account EUR 62.562 127.926

Bank ING Main account USD 13.371 0

Bank ING Latin America account 0 1.964

Bank ING Bank savings account 18.783 18.722

Bank ING Africa account 0 42.097

Bank ASN savings account 3.509 382.569

Bank MoneYou savings account 2.566 0

Paypal EUR 2.908 2.908

Cash and bank balances 104.241 584.763

TOTAL 165.672 798.695

Reserves and funds 31-12-2013 31-12-2012

General reserve (351.928) 209.413

Allocated funds - 714.505

Balance 31 December (351.928) 923.918


contractual payments for various projects are received in advance. BiD Network

can meet all grant obligations.

The allocated fund BiDx10 is formed from the grant of the Dutch Postcode

Lottery regarding the project BiDx10. In 2013, the received grant was spent in

total.

For the bidX allocated funds, the devaluation of the foundation’s shareholding in

this company was settled in 2012.

The Banks & Angels project has been put on hold in 2012, and therefore the

remaining funds have been re-allocated to the allocated funds for the project

BiDx10.

General Reserve 2013 2012

Balance 1 January 209.413 253.468

Appropriation of operational result (561.341) (44.055)

Balance 31 December (351.928) 209.413

Allocated fund, bidX 2013 2012

Balance 1 January 714.505 1.261.505

Appropriation of operational result (714.505) (882.000)

Re-allocation of funds 0 335.000

Balance 31 December 0 714.505

Allocated fund, Bank & Angels 2013 2012

Balance 1 January 0 440.000

Re-allocation of funds 0 (335.000)

Appropriation of operational result 0 (105.000)

Balance 31 December 0 0


Short term liabilities

Off-balance obligations

Rental contract

BiD Network has an off-balance obligation towards the landlord, Metroprop bv,

for the rent of the office at the De Ruyterkade 107. The rental contract will end

in March 2016. The total rental obligation until this date is EUR 48,000 per year,

plus annual indexation.

For the rental contract a deposit is kept at the ING Bank for an amount of EUR

18,000.

SHORT TERM LIABILITIES 31-12-2013 31-12-2012

bidX 0 21.567

Other 87.029 51.809

Creditors 87.029 73.376

VAT 124.766 0

Payrol taxes 16.392 28.817

Taxes and social security 141.158 28.817

BSCK 7.500 5.250

Invertir 7.498 2.000

IRIS 6.250 3.750

Business Women Forum Palestine 4.639 0

Birzeit University Center of Excellence 1.808 500

Fundes Argentina 0 1.000

Uni di Tella 0 2.750

BBIN 0 500

Creame 0 5.000

ConQuito 0 1.500

BSC Monrovia 0 1.750

Fundación E 0 2.500

JCI Rwanda 0 2.750

SEED 0 1.500

Commitment to international partners 27.695 30.750

IFAD 111.463 0

ING 37.473 25.000

Cherie Blair Foundation 8.281 0

SPARK, MFSII 0 176.805

Early receipts 157.217 201.805

Redundancy payment 60.000 0

Reservations of holiday 43.033 64.857

Dubois, auditor 19.920 0

Fundación Capital 0 7.471

Other short term liabilities 122.953 72.328

TOTAL 536.052 407.076


NOTES TO THE STATEMENT OF INCOME & EXPENDITURE

(All amounts are in Euros)

Notes on income

Income own fundraising

BiD Network’s own fundraising increased from EUR 0.2 million in 2012 to EUR

1.1 million in 2013. The increase is mainly caused by a grant received from the

IFC coalition. Compared to the budgeted own fundraising, realized own

fundraising was EUR 0.6 million higher. The 2013 budget did not include the IFC

coalition grant.

Income from efforts third parties

The income received in 2013 by efforts of thirds amounts to EUR 539,000. This

is more or less the same as last year and as the amount budgeted for 2013. The

Dutch Postcode Lottery decided in 2011 to grant BiD Network an annual amount

of EUR 500,000 for a period of five year. The 2013 grant was received as

agreed.

INCOME OVERVIEW

Company Project Real 2013 Budget 2013 Real 2012

ING Women in Business 28.028 22.500

EY Contribution 20.000 105.500

Cherie Blair Foundation Contribution 750 0

IFC G20 891.168 0

Other Events, Challenges, Consultancy 8.294 70.951

Activa bv Consultancy 0 1.255

MVO Nederland Events 0 14.000

SPARK Events 0 3.000

United Nations Foundation Global Alliance for Clean Cookstoves 36.561 0

IFAD Somali FoodPreneurs 62.005 0

Bernard van Leer Foundation Business Benefiting Children Challenge 0 10.000

Other Ready4Finance licenses 20.978 0

Income own fundraising 1.067.785 510.522 227.206

Dutch Postcode Lottery Annual contribution 500.000 500.000

ICCO Women in Business 29.500 17.500

Happy Gift Women in Business 10.000 0

Income from efforts third parties 539.500 539.500 517.500

Dutch Ministery of Foreign Affairs MFSII - United Entrepreneurship Coalition 1.078.638 1.056.188 1.296.816

Government subsidies 1.078.638 1.056.188 1.296.816

bidX Charged out staff costs 128.563 120.466 145.234

Other income 128.563 120.466 145.234

Bank interest Interest income 6.878 37.872

bidX Interest on granted loans 0 5.000

SPARK Attributable to MFSII -10.927 0

Interest income -4.049 25.000 42.872

TOTAL 2.810.436 2.251.676 2.229.628


Government subsidies

The income from government subsidies compared to last year decreased by

16.8% from EUR 1.3 million to EUR 1.1 million. The realization is equal to the

budget. The year 2013 was the third year of the MFSII program funded by The

Dutch Ministry of Foreign Affairs.

Intercompany income

As for services (Finance & Operations and Advisory Services) rendered by BiD

Network to bidX, an amount of EUR 128,563 was generated as other income.

Fundraising

The costs of fundraising versus total expenditure were approximately 1% in

2013 (2% in 2012).


Notes on Expenses

The figures in the column “Real 2013” match the figures in the tables below. This cost overview indicates how expenses are

spread across the three main expense categories on the Statement of Income & Expenditure: Objective, Fundraising and

Management & administration. Staff costs are allocated to the Management & administration category for approximately 7%,

a percentage representing the not objective related staff costs. The costs for Office, rent, utilities; Audit and external

consultancies; Deprecation and Financial costs have been allocated to Management & administration on the basis of the

number of employees proceeding Management & administration activities, versus the total number of employees of the

foundation. This results in a total percentage of 7% of Management & administration costs, in relation to the total costs.

EXPENDITURE Objective

Management &

administration Real Budget Real

2013 2013 2012

Stimulating

enterpreneurship

in developing

countries

Costs obtaining

own income

Costs obtaining

income by

efforts of third

parties

Costs obtaining

government

subsidies

Costs obtaining

other income

Grants and contributions 1.919.142 0 0 0 0 0 1.919.142 331.000 331.687

Outsourced work 216.540 2.394 38 0 0 18.577 237.549 173.280 260.946

Promotion and marketing 9.646 1.281 0 0 0 0 10.927 86.000 79.806

Staff costs 761.318 18.432 289 0 0 180.130 960.169 1.054.180 939.254

Travel costs 64.264 10.503 0 0 0 601 75.367 148.500 251.632

Office, rent and utilities 94.331 2.146 32 0 0 15.800 112.309 124.300 109.507

Audit and external consultancies 449.840 4.923 78 0 0 38.201 493.043 80.600 360.215

Depreciation and financial costs 6.267 163 0 0 0 1.243 7.673 10.000 9.221

ICT 17.678 459 0 0 0 3.506 21.644 57.500 36.416

Special expenses 233.551 0 0 0 0 14.908 248.459 0 0

TOTAL COSTS 3.772.577 40.302 437 0 0 272.966 4.086.283 2.065.360 2.378.684

Fundraising costs

Expenses related to the objective of BiD Network

BiD Network allocates all expenses related to its objective to one

objective, which is ‘stimulating entrepreneurship in developing

countries’.

In 2013, EUR 3.8 million was directly spent on the organization’s

objective. This is 134% of the total income. In the previous year, 97%

of the total income was directly spent on BiD Network’s objective.

Grant and contributions

The amount for grants and contributions is much higher than

budgeted. The project funded by IFC was not included in the budget of

2013. The project is largely carried out by bidX. The project costs for

2013 amounted to EUR 891,168.

BiD Network has received a grant from the Dutch Postcode Lottery in

2011 for the project BiDx10. Funds still to be spent on 31 December

2011 and 31 December 2012 have been allocated to a destination

fund. In 2012 and 2013 BiD Network has provided a total loan of EUR

719,505 to bidX to finance the activities arising from the project

BiDx10. This loan has been converted into a grant at the end of 2013.

Outsourced work

Charged fees of the foundation's former daughter company were

actually higher than forecasted, because more managerial activities

were executed by bidX, on behalf of BiD Network, than foreseen. This

was caused by changes in the management structure of both entities

during the second half year of 2013.

Grants and contributions Real 2013 Budget 2013 Real 2012

National partners 1.610.673 0

International partners 215.259 189.824

Event costs 93.210 141.863

TOTAL 1.919.142 331.000 331.687

Outsourced Work Real 2013 Budget 2013 Real 2012

bidX 237.549 260.946

TOTAL 237.549 173.280 260.946


Promotion and marketing

Promotion and marketing expenses are less than budgeted, because of

postponed execution of promotional activities on an organizational

level.

Staff costs

Personnel Expenses

At the beginning of 2013 BiD Network had 20 staff members,

measured as full time equivalents (FTE), at the end of the year there

were 11 staff members.

Remuneration Board of Directors

Promotion and marketing Real 2013 Budget 2013 Real 2012

Representation (lunches, presents, etc.) 5.967 5.238

Translations 1.634 22.585

Printing services 1.035 6.596

Conferences (speaking, fundraising, PR) 915 2.950

Design, desktop publishing and editing 330 487

PR and press bureau 0 20.483

Marketing (software, ads, subscriptions) 0 8.781

Other PR and marketing services 1.046 12.686

TOTAL 10.927 86.000 79.806

Staff costs Real 2013 Budget 2013 Real 2012

Salaries 782.396 766.873

Social security 107.127 111.459

Pension 33.566 27.770

Other employee costs 36.564 31.189

Recruitment costs 516 1.962

TOTAL 960.169 1.054.182 939.254


Following BiD Network’s stringent low-cost policy, remuneration of the

members of the Board of Directors is set below the guidelines of the

Dutch Fundraising Institutions Association (VFI) for management

salaries of charitable organizations (see www.vfi.nl). No loans,

advances or guarantees were given to the members of the Board of

Directors.

Cily Keizer has been incapacitated during 2013. As a result, in 2013

more costs were made on a Board of Directors’ level. Hendrik van Gent

was hired as interim director.

The Supervisory Board Allowance comprises of the attendance fees

that board members are entitled to receive to cover their costs, once

they have attended the board meetings. The fee is EUR 200 per

member per meeting. This allowance is acceptable according to the

Centraal Bureau Fondsenwerving (CBF), the Dutch Charities

Certification Organization.

Travel expenses

Remuneration Board of Directors Thierry Sanders Cily Keizer Hendrik van Gent

Employment contract

Duration Indefinite Indefinite Fixed

Hours per week 20 40 16

FTE % 50% 100% 40%

Period director 1/1-31/12 1/1-31/12 1/1-31/12

Remuneration

Gross salary 45.285 85.370 33.493

Holiday allowance 3.623 6.830 2.675

End of year allowance 0 0 0

Variable salary and bonus 0 0 0

Total annual salary 2013 48.908 92.200 36.169

Social security charges (covered by employer) 4.684 8.838 4.419

Additional taxable compensations 0 0 0

Pension premium (covered by employer) 2.853 4.296 1.826

End of service benefits 0 55.000 0

Total salary and employer charges 2013 56.444 160.334 42.413

Total salary and employer charges 2012 31.154 103.016 0

Travel expenses Real 2013 Budget 2013 Real 2012

International travel, accommodation, daily

allowance and visa participants in BiD weeks 58.046 122.679

International travel, accommodation, daily

allowance and visa staff members 13.017 125.120

Travel in The Netherlands 4.304 3.833

TOTAL 75.367 148.500 251.632

http://www.vfi.nl/


Travel costs were lower than forecasted, because of less executed

business travels during the year. For MFSII this was caused by having

the employee and consultant for the African Region stationed in

Rwanda. More in general, because of the restructuring of the

organization, activities have been more focused on reorganizing than

on core business activities.

Office, rent, utilities

Office expenses were more or less in line with the budget and prior

year expenses.

Audit and consultancy costs

The significant rise in consultancy costs was due to the hiring of

external consultants to assist in the restructuring of the organization,

the integration of BiD Network and bidX, and to invest in matchmaking

capacities.

Depreciation and financial costs

Office, rent, utilities Real 2013 Budget 2013 Real 2012

Rent 62.168 54.835

External office costs (Rwanda, Colombia) 14.473 2.345

Subscriptions (print, membership, etc.) 13.950 23.128

Cleaning costs 7.635 5.161

Telecom and internet 5.640 0

Office supplies 2.980 9.307

Office taxes 2.630 1.875

Installation and service costs 1.794 7.126

Mailing and shipping costs 283 402

Insurance 0 3.027

Literature (books, manuals) 0 171

Other office costs 756 -663

TOTAL 112.309 124.300 106.715

Audit and consultancy costs Real 2013 Budget 2013 Real 2012

Advice and consultancy fees NL 279.898 144.950

Advice and consultancy fees outside EU 146.912 114.368

External audit (Dubois, audit only) 37.074 31.195

Legal advice 21.959 305

Supervisory Board allowance 7.200 3.600

Advice and consultancy fees inside EU 0 65.796

TOTAL 493.043 80.600 360.215

Depreciation and financial costs Real 2013 Budget 2013 Real 2012

Depreciation inventory 2.161 3.115

Depreciation computers, software and telecom equipment 3.050 6.106

Financial costs 2.462 0

TOTAL 7.673 10.000 9.221


Depreciation costs show a decrease because of a 100% write-off of

part of the inventory and computers. An amount of EUR 3,636 is

charged to bidX.

ICT costs

Hosting and other costs were reduced in the course of 2013, through

better selection of service providers.

Special expenses

In 2010, the Dutch Tax and Customs Administration ruled that BiD

Network is VAT liable for its activities. From then on VAT was

administered for all expenses and deducted, and VAT was calculated

on the income components which are subject to VAT. During 2013, the

Dutch Tax and Customs Administration declared that the Foundation is

not subject to VAT. At the end of 2013 the Netherlands Tax Authority

decided that 21% of the VAT is deductible.

ICT Real 2013 Budget 2013 Real 2012

Hosting 10.694 18.909

Software 9.628 11.956

Other 1.322 5.551

TOTAL 21.644 57.500 36.416

Special expenses Real 2013 Budget 2013 Real 2012

VAT adjustment 2010 -3.855 0

VAT adjustment 2011 90.604 0



TOTAL 248.459 0 0


INDEPENDENT AUDITOR’S REPORT


ACCOUNTABILITY STATEMENT OF THE SUPERVISORY BOARD

The board is fully aware that an NGO has to follow the rules as

specified by several authorities on various topics such as accounting

standards (RJ 650 of the Dutch Accounting Standards Board) and

governance. Standards issued by the Central Bureau for Fundraising

(CBF) are of particular importance. We subscribe to these rules and

strive to be a role model in how a reliable NGO should function in

today’s society. BiD Network’s Supervisory Board supports the

guidelines described in the Code Wijffels and emphasizes the

importance of clarity and transparency in management, supervision

and accountability.

External

The organization’s functioning, internal administration and accounts

are audited annually by an external accountant. The accountant

performs no non-auditing tasks for BiD Network. The findings of the

annual audit are discussed in the audit committee of the Supervisory

Board, together with the head of finance and the board of directors.

With the annual accounts for 2013, BiD Network received a qualified

audit opinion of Dubois & Co. This declaration is included in this annual

report of BiD Network.

Internal

The Board of Directors provides quarterly reporting about activities and

results to the Supervisory Board. Accountability, authorization and

tasks of the Supervisory Board and the Board of Directors are defined

in by-laws. The Board of Directors is responsible for the day to day

operations of the organization and represents the organization to

external parties. The Board of Directors develops plans and budgets

and is responsible for the execution of approved strategies and

policies. The Supervisory Board supervises the functioning of the Board

of Directors and is involved in developing the long term vision and

strategy of the organization. Progress of the organization versus plan

and strategy is discussed in the quarterly Supervisory Board meetings.

annual report 2013 bid network

Documents