Transcript No Slide Title

4th ESTER Meeting
Tel-Aviv, 12-14 January 2005
Astrid Severin
Innovation Policy Unit
Overview
• Business Angel Networks in Europe
• PAXIS transfer of experience
• Gate2GRowth InvestorNet
• ERDF funding scheme in Ireland
• Future set-up
The equity gap
Capital
needs
Growth
Listing on a stock exchange
Venture Capital
€ 1 mill
(Pre-) Seed Funds /
Business Angels
€ 80 K
Own equity (FFF)
Seed/Start up
Stage
SME
Large Company
Business Angel Networks (BANs)
• Business Angels - private individuals investing
part of their personal assets in a start-up and
sharing personal business management
experience with the entrepreneur
• The concept first developed in the US-in Silicon
Valley, California
• European networks first appeared in the UK,
the Netherlands, Finland, Belgium, Germany,
France and Italy
• Australia is also home to intense informal
venture capital activity
(www.businessangels.com.au)
BAN set-up
• Business Angel Networks (BAN) - organisations
aiming to facilitate the matching of
entrepreneurs with business angels (neutral, no
evaluation of business plans or angels)
• Most EU BANs legally set-up as private firms,
non-profit organisations or possibly foundations
in collaboration with banks, incubators,
Chambers of Commerce or Regional
Development Agencies
• ERDF eligible regions have possibility of
leveraging EU funds to co-finance BANs (LINC
Scotland has been receiving ERDF subsidies
from this channel)
Evolution of BANS 1999-2004
282
300
250
154
200
150
196
176
132
66
100
50
0
1999
2000
2001
2002
2003
Source EBAN 2004
2004
Evolution of BANs
• No of BANs has strongly evolved
• In 2003, EBAN identified 196 networks
and by mid-2004, 282 European
networks
– Germany from 1 to40, Spain from 0 to 11,
UK from 49 to 101
– Israel from 0 to 2
– Czech Republic 2, Hungary 1, Poland 1, Malta
1, Slovenia 1, Russia 4…
PAXIS Business Angel Networks
• HIGHEST - Networking between incubators and
Business Angels
• KREO - Creation of BANs in Karlsruhe and Lyon
(2001-2002)
• PANEL - Munich Business Angels
• SPRING - Creation of Business Angel Forum
Region Stuttgart e.V. and initiation of a Business
Angel Network Madrid
• START - Business Angel Network Management
(Veneto)
UK - The environment
– 1998 The University Challenge Fund (£60.0m for
new projects and seed capital for new spinouts)
– 2000 Higher Education Reach Out (£83.0m over
three years to encourage academic spin-outs)
– 2001 Public Sector Research Exploitation
(£25.0m to fund commercialisation of new
technologies)
– 2002 Higher Education Innovation Fund (£77m
over three years to encourage academic spinouts)
The Oxfordshire Investment
Opportunity Network (OION)
• Established in 1994 as part of Oxford Innovation
• Linking early stage, high growth potential
companies with investors
• Technology- and Oxford-based, monthly mtgs
• 120 + Active Investors: Individuals (syndicates),
VCTs (Seed Capital), VCs (3i, MTI), Corporate
investors (GSK, Unilever)
Transferring best practices
– OION model presented and discussed during
SPRING / KREO workshop on early stage
financing
– Business Angel Forum Region Stuttgart
established
– Both models basis for BAN Madrid area (project
started in July 2004)
– Cambridge BAN tools presented and transferred
to in Stuttgart (2004)
PAXIS – Transfer of excellence
• Transfer examples
– Concept for creation of Business Angel
Networks
– Co-incubation of start-ups in biotechnology
incubators
– Euro-Office initiative supporting the
internationalisation of SMEs
– Combination and transfer of successful
technology platform models (biotechnology,
genomics, diagnostics)
Gate2Growth
• Networks and services for
entrepreneurs (Business Matching),
investors (InvestorNet), technology
incubator managers (IncubatorForum),
industrial liaison and IPR managers
(ProTon Europe) and academia
(Academic Network)
• www.gate2growth.com
InvestorNet
• Enhancing the capacity of European
early-stage venture capital operators to
invest in innovative companies
– Acceleration of EU cross-border contact and
communication
– Provision of central points for accumulation of
knowledge
– Cross-border networks of support
organisations and ‘project generators’
(universities, science parks, incubators)
InvestorNet
• Lessons learnt
– Round table meetings enable personal contact
within specific sectors but across borders
– Investors are still find hard to find high
quality investment opportunities
– Investors main concern is exit possibility
– Very difficult to identify potential investor
members from new members states as
technology focussed VC industry is
underdeveloped
InvestorNet Round Table Meetings
2005
•
•
•
•
ICT and Design March 2005London
Medical Devices April 14th-15th 2005Berlin
Energy Technology June 2005Scotland
Nutrition and Food technology July
2005Italy/Belgium
• Biotechnology September, 2005Copenhagen
• E-Content, E-Commerce and Media October,
2005tbd
Financing and the ERDF
•
The Irish Research Technology and
Innovation (RTI) Competitive Grants
Scheme
•
National Development Plan 2000-2006
(Operational Programme for the Productive
Sector)
•
Scheme supports commercially focussed,
industry-led projects in product and
process development
•
Co-funded by the ERDF; Managed by
Enterprise Ireland
Objective of RTI in Ireland
• Helping companies to reach and exceed
European and international norms for
R&D investment
• Increase
–
–
–
–
No of companies performing effective R&D
No of companies doing R&D for the first time
Investment in R&D in Ireland
Quality and quantity of the R&D linkages between
companies and third level institutions and companies
Using the RTI Grant
• Process and product development
projects for companies with
expenditure up to 95,200 Euro
• Expenditure exclusive and essential
to project (salaries, overheads,
material for prototype tooling,
travel, external consultancy incl.
design) - 2 years
Assessment of applications
• Technical feasibility and innovative quality
• Accuracy of project planning and costing
• Technical capacity and track record of company
in R&D
• Capacity to commercialise output of RTI results
• Increase R&D capacity as result of project
• Formal collaboration taking place (with other
comapneis, R&D institutions, etc)
More information: www.enterpriseireland.com/rti
Future set-up
Gate2Growth
Networking
Innovation
actors
PAXIS
Coordination
Collection
Analysis
1.2.1.4
Exploitation of results
2 Mio Euro
EUROPEAN INNOVATION PORTAL
Innovation
&clusters
1.2.1.3
For more information
• www.cordis.lu/paxis
• www.gate2growth.com
• www.eban.org
• www.enterprise-ireland.com/rti
[email protected]
[email protected]