-1AL, Supplemental Lc II e HAMAG-BICRO July , 5 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 8518-HR (Inn )vation and Entrepreneurship Venture Capital Project) Perf )rmance Monitoring Indicators Dear Sirs and Mesdames: This refers to Section II.A. of the Schedule to the Project Agreement of even date he t v th between the Hamag-Bicro (the Projet t Implementing Entity) and the International Bank for Reconstj ict n and Development (the Bank). The Project Implementing Entity hereby confirms to the Bank tl ate indicators set out in the attachment tc this letter shall serves as a basis for the Bank to monitor and e, IL te the progress of the Project and the ac iievement of the objectives thereof. Very truly yours, H MAG-BICRO A zed Representative o zed epresentative Attachment to Supplemental Letter (Innovation and Entrepreneurship Venture Capital Project) Performance Monitoring Indicators Project Development Objective (PDO): The project development objective is to strengthen risk capital financing for innovative SMEs and startups. PDO Level Results Indicators Cumulative Target Values Indicator Name*Unto MeasureEn Baseline YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 End Target 1) Total number of firms receiving risk capital Number 0 1 2 5 8 11 15 15 financing from the Seed Co-Investment Fund 2) Total number of firms receiving risk capital Number 0 0 1 3 6 10 12 financing from the Venture Capital Fund 3) Number of firms receiving investment that successfully introduced a new product, Number 0 0 2 4 7 11 14 14 process, service, or upgraded the quality of an existing product, process, or service 4) Training provided (to government staff, investors and potential investees) under the Number 0 40 73 100 113 127 133 133 Project -2- Intermediate Results Cumulative Target Values Indicator Name Unit of Measure Baseline YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR1O End Target 1) Total amount of risk capital financing provided from the E millions 0 0.25 0.75 1.5 2.5 3.75 5 Seed Co-Investment Fund and 5 leveraged from private investors 2) Private sector investment leveraged by the Seed Co- E millions 0 0.1 0.4 0.8 1.3 1.9 2.5 3 Investment Fund 3) Co-investors in firms alongside the Seed Co- Number 0 1 1 2 4 6 8 8 Investment Fund 4) Total amount of risk capital financing provided by the public sector through the Pilot VC f millions 0 - 1.5 5.5 10.5 16.5 20.0 20 Fund and by the private sector investing in the fund 5) Private sector investment leveraged into the Pilot VC E millions 0 - 0.60 2.20 4.20 6.60 8.00 8 Fund 6) Co-investors in the Pilot VC Number 0 4 4 4 4 4 4 4 Fund 7) Training provided to Number 0 13 24 33 38 42 44 44 investors under the Project 8) Training provided to potential investees Number 0 13 24 33 38 42 44 44 (entrepreneurs) 9) Training provided to Number 0 13 24 33 38 42 44 44 government officials 10) Training provided to female Number 0 1 2 3 4 4 4 4 investees (entrepreneurs) 11) Training provided to female Number 0 1 2 3 4 4 4 4 government officials 12) Number of SMEs/startups satisfied with quality of services Number 0 8 15 20 23 25 27 27 provided under the Project -3- Indicator Description Project Development Objective Indicators Responsibility Indicator Name Description (indicator definition etc.) Frequency Methodology for data collection Total number of firms receiving risk capital financing Number of firms receiving risk capital financing from the Semi Annual Ongoing HAMAG from the Seed Co-Investment Fund Seed Co-Investment Fund Monitoring BICRO Total number of firms receiving risk capital financing Number of firms receiving risk capital financing from the Semi Annual Ongoing Ongoing from the Venture Capital Fund Venture Capital Fund Monitoring Monitoring Number of firms receiving investment that successfully Number of firms receiving investment that successfully Semi Annual Ongoing Ongoing introduced a new product, process, service, or upgraded introduced a new product, process, service, or upgraded Monitoring Monitoring the quality of an existing product, process, or service the quality of an existing product, process, or service Training provided (to government staff, investors and Number of people ( government staff, investors and Semi Annual Ongoing Ongoing potential investees) under the Project potential investees) trained under the Project Monitoring Monitoring Intermediate Results Indicators Data Source/ Responsibility Indicator Name Description (indicator definition etc.) Frequency Methodology for data collection Total amount of risk capital financing provided Total amount of risk capital financing provided Ongoing HAMAG- from the Seed Co-Investment Fund and by private from the Seed Co-Investment Fund and by private Semi Annual onoing BICRO investors investors Private sector investment leveraged by the Seed Amount of private sector investment leveraged by Semi Annual Ongoing HAMAG- Co-Investment Fund the Seed Co-Investment Fund Monitoring BICRO Co-investors investing alongside the Seed Co- Number of Co-investors investing alongside the Semi Annual Ongoing HAMAG- Investment Fund in firms Seed Co-Investment Fund in firms Monitoring BICRO Total amount of risk capital financing provided by the public sector through the Pilot VC Fund and Total amount of risk capital financing provided by Semi Annual Ongoing HAMAG- by the private sector investing in the fund the public sector through the Pilot VC Fund and by Monitoring BICRO the private sector investing in the fund Private sector investment leveraged into the Pilot Amount of private sector investment leveraged into . Ongoing HAMAG- VC Fund the Pilot VC Fund Monitoring BICRO Co-investors in the Pilot VC Fund Number of co-investors in the Pilot VC Fund Semi Annual Ongoing HAMAG- Monitoring BICRO -4- Number of investors that are expected to receive Training provided to investors under the Project training and partake in network activities as part of Semi Annual onoing BAMAO the pogramMonitoring BICRO the program Training provided to potential investees Number of entrepreneurs/potential investees that are Ongoing HAMAG- (entrepreneurs) expected to receive training and partake in network Semi Annual Monitoring BICRO activities as part of the program Number of government officials that are expected to Ongoing HAMAG- Training provided to government officials receive training and partake in network activities as Semi Annual Monitoring BICRO part of the program Training provided to female investees Number of female entrepreneurs/potential investees Ongoing HAMAG- that are expected to receive training and partake in Semi Annual network activities as part of the program Number of female government officials that are Ongoing HAMAG- Training provided to female government officials expected to receive training and partake in network Semi Annual Monitoring BICRO activities as part of the program Iu1ui o n aitup3 5atimui%u wIuL quaity V IuIU VI 3I"/3taILUp3 3anuiku WinI 4uainy 01 Innuina n1a1viu- services provided under the Project services provided under the Project Monitoring BICRO -5-