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: 6 | ARCHIVED on 08-Jan-2021 | ISR44974 | 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: 31-Mar-2021 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 $0.13 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Innov Invest is a Satisfactory project with a track record crowding-in US$ 47 M in private capital from 15 local and international investors for Moroccan startups and innovative SMEs. CCG has 19 accredited partners (3 fund managers and 16 support structures) that have a portfolio of 287 companies as of November 30, 2020. The total funding received by these beneficiary companies amount to US$ 17.3 M i.e. (i) US$ 11.6 M for 12 equity deals, (b) US$ 4.1 M for 233 seed grants, and (c) US$ 1.6 M for 42 soft loans. One business angels’ network has been developed (Angels4Africa) and more are expected to receive support in 2021. All project targets should be met or exceeded by project closing. Despite the COVID-19 crisis, deal-flow is strong under the financing program (component 1). The project was restructured in October 2020 to mitigate the impacts of the pandemic on the Moroccan ecosystem (component 2). 1/8/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) 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 Moderate Moderate Technical Design of Project or Program High Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Low Low Low Stakeholders Low Low Low Other Low Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Facilitate the increase of private equity and quasi equity financing IN00936816 ►Private Capital Mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,750,000.00 47,000,000.00 30,000,000.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936817 Private Angel/Seed Stage Capital Mobilized Through the Project (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,600,000.00 5,000,000.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936818 Private Venture Capital Mobilized Through the Project (Amount(USD), Custom Breakdown) 1/8/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,750,000.00 5,300,000.00 25,000,000.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936819 ►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 0.00 171.00 268.00 100.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936820 ►SMEs receiving private equity financing through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 12.00 60.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936821 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 5.00 20.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936822 SMEs receiving private VC equity financing through the project (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 7.00 40.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 Overall Comments PDO The project end target for private capital mobilized at funds level has been exceeded by 157 percent, however efforts need to continue at firms level (+110% in 2020) in order to fully deploy the funds to the market. Explanation for PDO-level indicator #1 and its two sub-indicators which reflect 'expected private capital mobilized' versus 'actual private capital mobilized at angel/seed and VC stages' respectively. While it is possible to measure private capital mobilized in anticipation of its deployment (at the funds level), it is not possible to disaggregate the deployment between angel/seed and VC stages (at the firms level) until the deals have taken place.  Private Capital Mobilized: Innov Invest has committed US$ 24.25 M in funding to three funds which in turn have mobilized an additional US$ 47 million for their closing. The overall size of the three funds is now at US$ 71.25 million as of November 30, 2020.  Private Angel/ Seed Stage Capital Mobilized through the Project: Innov Invest's participating funds have invested 5 times in deal rounds below US$ 0.6 M (seed stage) for an aggregate amount of US$ 2.3 M o/w US$ 1.5 in private capital were leveraged by the project. Additionally, 1 business angel joined one of MNF II deal for a ticket of US$ 0.1 million. Thus private angel/seed stage capital mobilized by the project stands at US$ 1.6 M as of November 30, 2020. 1/8/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928)  Private Venture Capital Mobilized through the Project: Innov Invest's participating funds have invested 7 times in deal rounds over US$ 0.6 M (VC stage) for an aggregate amount of US$ 8.8 M o/w US$ 5.3 M in private capital were leveraged by the project. Thus VC stage capital mobilized by the project stands at US$ 5.3 M as of November 30, 2020. There are 268 beneficiaries that have introduced a new or, improved, product, process or service under the project. It is a 57 percent increase in 2020. The project end target has already been exceeded by 268 percent. There are 12 SMEs that have received private equity financing through the project. It is a 140% increase in 2020. The project end target is completed at 20%. Intermediate Results Indicators by Components Financing Program IN00936823 ►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 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936825 ►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 1.00 1.00 2.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936827 ►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 12-Jun-2020 29-Dec-2020 31-Dec-2023 Ecosystem Support IN00936824 ►Number of entrepreneurs receiving pre-seed grants and soft loans through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/8/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) Value 0.00 170.00 275.00 200.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936826 Percent female entrepreneurs receiving pre-seed grants through the project (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 22.00 26.80 25.00 IN00936828 ►Entrepreneurs receiving mentoring and investment readiness support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 304.00 511.00 100.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936829 ►Angel Network developed through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 1.00 Date 30-Sep-2016 12-Jun-2020 29-Dec-2020 31-Dec-2023 IN00936830 Angel network members who received training through the project (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6.00 10.00 IN00936831 ►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 12-Jun-2020 29-Dec-2020 31-Dec-2023 Overall Comments IR All intermediate results indicators have progressed, and most of them have either already been met or exceeded. Indicator 1 (Financing Program) is not necessary anymore and will be removed at MTR. And Indicator 7 (Ecosystem Support) will be measured for the first time at MTR. Performance-Based Conditions Data on Financial Performance 1/8/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Financing Innovative Startups and Small and Medium Enterprises Project (P150928) 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 46.24 3.76 92% 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 PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC 1/8/2021 Page 6 of 7 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. 1/8/2021 Page 7 of 7