The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) Financing Innovative Startups and Small and Medium Enterprises Project (P150928) MIDDLE EAST AND NORTH AFRICA | Morocco | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 4 | ARCHIVED on 04-Nov-2019 | ISR37480 | Implementing Agencies: Kingdom of Morocco, La Caisse Centrale de Garantie Key Dates Key Project Dates Bank Approval Date: 10-Mar-2017 Effectiveness Date: 28-Jun-2017 Planned Mid Term Review Date: 28-Oct-2020 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2023 Revised Closing Date: 31-Dec-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project objective is to facilitate the increase of private equity and quasi-equity finance for innovative startups and small and medium enterprises in the Project Area. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Financing Program:(Cost $42.00 M) Ecosystem Support:(Cost $6.00 M) Project Management, Coordination and M&E:(Cost $1.87 M) Front-end Fee:(Cost $0.13 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Satisfactory ►Moderately Satisfactory Overall Implementation Progress (IP) ►Moderately Satisfactory ►Moderately Satisfactory Overall Risk Rating ►Substantial ►Substantial Implementation Status and Key Decisions CCG has 19 accredited partners (3 fund managers, 16 support structures). The project financed 67 companies as of May 31, 2019 for 43 million Dirhams (MDH): (a) 30 MDH in 3 equity deals, (b) 4 MDH for 51 seed grants, and (c) 9 MDH for 13 soft loans. Moving forward one business angels’ networks will be selected this calendar year, 11/4/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) along with an investment management company. Deal-flow on Venture Capital side is strong with dozen expected deal opportunities in the pipe (short-term) for the 3 funds in the next six months, and up to an additional 416 innovative ventures for seed grants and soft loans (Rabat, Casa, Marrakech) within the next 36 months. Coverage along the entrepreneurship financing value chain is exhaustive from R&D ideation to Growth, however what’s lacking are better accelerators and seed funds to complement and work alongside the upcoming business angels’ network(s). All project targets should be exceeded but more work is needed for “SMEs receiving private VC equity financing through the project” and “SMEs receiving private Angel/Seed equity financing through the project”. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance ►Moderate ►Moderate ►Moderate Macroeconomic ►Low ►Low ►Low Sector Strategies and Policies ►Substantial ►Substantial ►Substantial Technical Design of Project or Program ►High ►High ►High Institutional Capacity for Implementation and Sustainability ►Moderate ►Moderate ►Moderate Fiduciary ►Substantial ►Substantial ►Substantial Environment and Social ►Low ►Moderate ►Moderate Stakeholders ►Low ►Low ►Low Other ►Low ►Low ►Low Overall ►Substantial ►Substantial ►Substantial Results PDO Indicators by Objectives / Outcomes Facilitate the increase of private equity and quasi equity financing IN00712636 ►Private Capital Mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,000,000.00 2,400,000.00 30,000,000.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712637 ►Private Angel/Seed Stage Capital Mobilized Through the Project (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target 11/4/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) Value 0.00 0.00 0.00 5,000,000.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712638 ►Private Venture Capital Mobilized Through the Project (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,000,000.00 2,400,000.00 25,000,000.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712639 ►Beneficiaries that introduced a new or, improved on an existing, product, process, or service under the projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 67.00 100.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712640 ►SMEs receiving private equity financing through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 3.00 60.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712641 ►SMEs receiving private Angel/Seed equity financing through the project (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712642 ►SMEs receiving private VC equity financing through the project (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 3.00 40.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 Overall Comments PDO After 27 months into implementation, the project is progressing as expected. All indicators are progressing well except for slight setbacks due to CCG decision to withdraw from GNII Fund. GNII portfolio comprised of 4 deals totaling US$ 1.47 M and leverage ratio of 3. This negatively impacts, temporarily, (a) the amount of private capital mobilized, and (b) the number of SMEs receiving private equity financing through the project. 11/4/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) Intermediate Results Indicators by Components Financing Program IN00712643 ►Investment management company contracted to manage the Angel/Seed fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712645 ►Private Fund Managers contracted to manage new public-private funds under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 1.00 2.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712647 ►Public-private funds Shareholder Agreements completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 2.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 Ecosystem Support IN00712644 ►Number of entrepreneurs receiving pre-seed grants and soft loans through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18.00 64.00 200.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712646 ►Percent female entrepreneurs receiving pre-seed grants through the project (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 20.50 25.00 IN00712648 ►Entrepreneurs receiving mentoring and investment readiness support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 112.00 100.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712649 11/4/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) ►Angel Network developed through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 30-Sep-2016 10-Sep-2018 31-May-2019 31-Dec-2023 IN00712650 ►Angel network members who received training through the project (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 IN00712651 ►Beneficiaries satisfied with services received and performance of PIs (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 30-Sep-2016 21-Feb-2018 31-May-2019 31-Dec-2023 Overall Comments IR All intermediate results indicators are progressing well except for a slight setback due to CCG decision to withdraw from GNII Fund. This negatively impacts, temporarily, the number of private fund managers contracted to manage new public-private funds under the project. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P150928 IBRD-87240 Effective USD 50.00 50.00 0.00 43.83 6.18 88% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P150928 IBRD-87240 Effective 10-Mar-2017 16-Jun-2017 28-Jun-2017 31-Dec-2023 31-Dec-2023 Cumulative Disbursements 11/4/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/4/2019 Page 6 of 6