“business angel investing across europe”
DESCRIPTION
EBAN - The European Trade Association for Business Angels, Seed Funds & other Early Stage Market Players. “Business Angel investing across Europe”. Angel Prieto General Manager of GOBAN – B.A.N. of Castilla La Mancha, Spain Member of EBAN. E: [email protected] W: www.eban.org - PowerPoint PPT PresentationTRANSCRIPT
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“Business Angel investing across Europe”
Angel PrietoGeneral Manager of GOBAN – B.A.N. of Castilla La Mancha, SpainMember of EBAN
EBAN - The European Trade Association for Business Angels, Seed Funds & other
Early Stage Market Players
E: [email protected]: www.eban.orgwww.gobanclm.com
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About Business Angels
Business Angel: Private individual investing own wealth in early stage businesses AND own expertise and network of contacts
INVEST:• Investment 25 000 - 250 000 euro• No sector preference• Often prefer to invest in their region of residence• Usually total investments below 25% of wealth
SHARE:• Willing to share their managerial skills, specialist knowledge and
networks• Seeking profit, but also fun• Can become involved in the business (“active Angel”) or not
(“passive Angel”).
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About Business Angels
Characteristics that Business Angels are seeking:
1. Current & comprehensive Business Plan /Teaser
2. High growth / scaleable / strong business forecast
3. Developed product / service with sales
4. Angel involvement welcome
5. Realistic pre-money value
6. Strong & committed Management Team
7. BUT Entrepreneur’s qualities are most important
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Angels and Other Finance Sources
Capital Needs
Time
Seed Start-up Early Growth Sustained Growth
Higher Risk
Friends, Family & Founders
Business Angels
Venture CapitalFunds
IPO
0
Angels help fill the ‘Equity Gap’
Early stage and seed venture funds
LowerRisk
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About Angel Networks
Entrepreneur
Business Angel
Contact of BAN
Business planevaluation and validation
Drafting of business plansummary
Investment readiness programme
Preparation of a presentation
Identification
Training
Identification of investment priorities
BA added to database
Participation in investment forum/club
Confronting offer
and demand
Circulation ofBusiness plan
MATCHING
Leverage funding, co-funding, bank loans
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Regional Government Financial Aid
Managed by Business Innovation Centers
Chamber of Commerce involvement
Regional coverage (4 contact points)
Web based services
Venture Academies (40 Entrepreneurs)
Investment Days (20 B. Angels)
GOBAN- Business Angel Network of Castilla La Mancha, Spain
www.gobanclm.com
Who are EBAN?
EBAN
13 Federations – 250 angel networks + associated members
20.000 angels
40.000 entrepreneurs
80.000 website viewers
8.000 publication readers
27 countries
Over 100 members
Membership X4 in 5 years
Now open to seed funds
Circa 100 members
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• Very varied level of development
– UK has the most mature market in the EU
– France, Germany, Sweden, Belgium, Finland, Netherlands
– Smaller players, e.g. Italy, Spain, Norway
– AEBAN – Spanish B.A.N. Association with 24 members
– Very small markets, Slovenia, Greece, Portugal
• Different types of founders
• Varied level of Government support
• National trade associations sometimes represent the market
• Rapid growth
European Angel Market Characteristics
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European Angel Market Characteristics
Number of Business Angel Networks
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Summary of industry statistics
Source: Compiled information from EBAN, ACA and Center for Venture Research
2008 EU US
Networks 334 300
For profit 31% 59%
Estimate n of angels
75.000 250.000
Investment per round
207.226€ 276.918$
Total estimate invested annually
4 billion€ 20 billion€
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Trends last two years
•Increasing co-investments with early stage funds and other
investors
•Increasing provision of training services for investors and
entrepreneurs
•Majority of investments still made at regional level but
changing
•Diversification of investment sectors
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How to encourage angel activity?
NATIONAL LEVEL• Fiscal environment
- Capital gain or loss exemption from tax- Equity guarantees
• Non-financial incentives• Syndication opportunities w/ other Funds• Business Angel Academies• Venture Capital Academies• Investment days
• Integration of BAN activities in the regional entrepreneurship strategy
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Role of National Federations
• A common voice for all business angel networks at
national level
• Higher visibility for the angel movement –
representation near third parties
• A repository of good practice, case studies at national
level
• A Government partner for research, policy
development, etc to facilitate business angel investing
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Industry Experience
Exit multiple
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• Establishing a proper environment for financing innovation and entrepreneurship
• Know and disseminate the proper tools for financing innovation and entrepreneurship, available worldwide
• Establish partnerships between angels networks from different countries, including stimulating angel cross border investments
• It is important for policy makers worldwide to use information gathered by the Business Angels community, and to foster their capacity to create and develop financing mechanisms, in a public-private partnership logic, to support innovation and entrepreneurship.
The Future: WBAA – World Business Angels
Association
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¡¡Thank You!!
Contact details:
EBAN Rue Vautier 54
1050 Brussels | Belgium
W: www.eban.org
Contact details:
Angel PrietoGOBAN
Avenida 4ª nº 3
E-02007 Albacete | Spain
W: www.gobanclm.com