“We want to help young starting internet entrepreneurs to realise their ideas"

- An Interview with Nico Daminet, Managing director Emerio -

Many creative and high-potential ideas exist in the Belgian online sector. It is not easy for starting internet companies however, to find investors. That is why Jonas Dhaenens (Combell) and Nico Daminet (Emerio) decided to join forces and set up an internetfund for starting internet entrepreneurs. We speak with Nico Daminet, managing director of Emerio, about the possibilities of this fund.

How did you come up with the idea for an Internet fund?

I know Jonas Dhaenens Combell for several years now and I have huge respect for what he has built up by himself, without support from third parties. This is the best example of how a young entrepreneur should start! I myself have founded Emerio a few years back, an independent consulting firm focusing on financial services companies. In that context, I have worked with Jonas for about five years as his external CFO (financial soundboard). Together we have done a lot of strategic thinking about the best ways to grow for a company. One of the conclusions was that Combell wants to support internet start-ups. But when we thought about this further, we decided we wanted to work together with a number of experts and investors to turn this idea into something bigger. This is how the idea for the new internet fund originated.

What is the purpose of this fund?

The purpose of the fund is to help young internet entrepreneurs with an "early stage - seed capital" funding to help realising their ideas. All ideas, even the craziest, are welcome, as long as there is a strong and sustainable business model. All too soon, people think to have the idea for a new Facebook, Groupon ..., but we must remain realistic!

Besides funding, we also want to provide "smart money". By this we mean that we have a panel of experts that give their opinions and advice on the start-up and can also coach the company when it has started its business. To only contribute financially is often fun, but if you have a good advisory board on top of that, that can have a positive snowball effect.

What requirements must an internet start-up meet to be eligible for funding?

There has to be a well-founded business plan with a clear understanding of revenue streams and fixed costs. Furthermore it is logical that we invest in people, so the management / entrepreneurs should be able to convince us why they are going to make the difference. And of course a recurring revenue model is very interesting. The higher % of turnover, the more interesting the investment is!

Where can start-ups apply?

We are currently finalizing the description of what we want to do and how we want to do it and with whom. We do not have a name yet and a website is under construction but for now anyone interested can send a mail to nico@emerio.be. After the summer break we want to finalise a website where everything will be explained further.

How does the fund work? Are you an intermediary between the starter and investor or are there fixed financers attached to the fund?

We have the idea to work together with a number of fixed financers in order to raise a few million in capital for the fund. With the fund we then want to work with amounts of a few hundred thousand euros to invest in the start-ups. Of course we do have a wide network and it could occasionally happen that we bring the starter in contact with investors or other persons if there is a need for it.

Is the fund aimed solely at providing financing or do you also provide support or knowledge?

Indeed, we also intend to provide advice to the starters. Therefore, we appeal to a number of experts who know the ropes and based on their experience can offer an added value. It will therefore be a combination of funding and advice, so ‘Smart Money’.

The fund will be launched in September. What are your plans for the first year?

We certainly will not rush our start and we want to invest our gathered capital smartly. We'll see what comes on our path, but we do hope to make some investments and be able to address a number of ideas together with other organizations. In this way we want to create a platform for young internet entrepreneurs.
Since we want to be an open ended fund, we do not have the pressure to have to invest during the first years. Of course we will try to exploit all opportunities.

Do you think the lack of financing could be a reason for the Belgian e-commerce sector ‘lagging behind’ on other European countries?

There are relatively few success stories in Belgium in the field of e-commerce compared to other countries. This is perhaps why the Belgians were more cautious of e-commerce. And indeed, the limited financial resources available in recent years for internet entrepreneurs, will certainly not have helped. I often hear of internet entrepreneurs that they get little response at banks regarding their financial needs. But I do feel that Belgium is currently on its way to eliminate the backlog.