Transcript Document

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
E: [email protected]
Member of EBAN
W: www.eban.org
www.gobanclm.com
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”).
2
About Business Angels
Characteristics that Business Angels are seeking:
1.
2.
3.
4.
5.
6.
7.
Current & comprehensive Business Plan /Teaser
High growth / scaleable / strong business forecast
Developed product / service with sales
Angel involvement welcome
Realistic pre-money value
Strong & committed Management Team
BUT Entrepreneur’s qualities are most important
3
Angels and Other Finance Sources
Capital Needs
IPO
Venture
Capital
Funds
Higher
Risk
Early stage
and seed
venture
funds
Business
Angels
Angels help fill
the ‘Equity Gap’
Friends,
Family &
Founders
Lower
Risk
Time
0
Seed
Start-up
Early Growth
Sustained Growth
4
About Angel Networks
Entrepreneur
Business Angel
Contact of BAN
Business plan
evaluation and validation
Drafting of business plan
summary
Identification
Confronting
offer
and demand
Circulation of
Business plan
Investment readiness
programme
MATCHING
Preparation of a
presentation
Leverage funding, cofunding, bank loans
Training
Identification of
investment priorities
BA added to
database
Participation in
investment
forum/club
5
GOBAN- Business Angel Network of Castilla La Mancha, Spain
www.gobanclm.com
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)
6
Who are EBAN?
Circa 100
members
EBAN
13 Federations – 250 angel networks +
associated members
Membership
X4 in 5 years
Now open to
seed funds
20.000 angels
40.000
entrepreneurs
80.000 website
viewers
8.000 publication
readers
27 countries
Over 100
members
European Angel Market Characteristics
• 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
8
European Angel Market Characteristics
Number of Business Angel Networks
9
Summary of industry statistics
2008
EU
US
Networks
334
300
For profit
31%
59%
75.000
250.000
Investment per
round
207.226€
276.918$
Total estimate
invested
annually
4 billion€
20 billion€
Estimate n of
angels
Source: Compiled information from EBAN, ACA and Center for Venture Research
10
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
11
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
12
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
13
Industry Experience
60
50
Percent of exits
40
No industry experience
30
Some industry experience
20
10
0
less than 1X
1X to 5X
5X to 10X
10X to 30X
more than 30X
Exit multiple
14
The Future: WBAA
Association
– World Business Angels
• 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.
15
¡¡Thank You!!
Contact details:
EBAN
Contact details:
Angel Prieto
Rue Vautier 54
1050 Brussels | Belgium
E: [email protected]
W: www.eban.org
GOBAN
Avenida 4ª nº 3
E-02007 Albacete | Spain
E: [email protected]
W: www.gobanclm.com
16