young european entrepreneurs’ seminar 2011 the importance of business angels for entrepreneurship
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Young European Entrepreneurs’ Seminar 2011
The importance of Business Angels for entrepreneurship
Chiara de Caro, General Manager EBANNovember 17th 2011
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ABOUT EBAN
Business angel
networks
Federations of networks
Individual angels
Associate
members
120 member organisations – Representing 300 BANs – 27 countries
Seed funds
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BUSINESS ANGELS
•An individual investor, investing directly his/her own money predominantly in seed or start-up companies with no family relationships, with a medium to long term set time-frame and financially independent
•Making his/her own (final) investment decisions
•Ready to provide, on top of his/her individual investment, follow-up strategic support to entrepreneurs from investment to exit.
•Respecting a code of ethics including rules for confidentiality and fairness of treatment (vis-à-vis entrepreneurs and other BAs), and compliance to anti-laundering.
>Investment average 25 to 250k€
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EXAMPLES OF BA FUNDED COMPANIES
Michelson Diagnostics
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WHAT BUSINESS ANGELS LOOK FOR?
• Current & comprehensive Business Plan• Strong & committed Management Team• Environment and market• High growth / scalable / strong business forecast (5m€/3yrs)• Realistic pre-money valuation• Exit strategy
BUT Entrepreneur’s qualities are most important
In Europe , Business Angels invest 4 Billion Euros per year in 20.000 companies (including several financial rounds)
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BUSINESS ANGEL NETWORKS
• Membership: Business Angel investors• Fees: Annual membership fee and sometimes % success fee• Seeks & filters applications from entrepreneurs• Allows selected entrepreneurs to pitch to investors• May also: provide training (to entrepreneurs and Angels),
opportunities to syndicate
“Private or semi-public body whose aim is to match entrepreneurs looking for equity with business angels”
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ADDED VALUE
Angel Networks can increase supply & demand for Angel Investment
• Investment Readiness programmes – get entrepreneurs ready for investment
– e.g. Business Planning advice, Presentation Training etc.
• Investor Readiness programmes – educate investors in the basics of Angel investment
– e.g. Legal Issues advice, meet with existing Angels, learn about tax break schemes
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WHAT CAN POLICY MAKERS DO?
SUPPLYBringing more
investors
DEMANDQuality deal flow
MARKETImpact and sustainability
Fiscal incentives Investment readiness (incl. sector specific)
Support sustainable and professional BANs
Co-investment funds Teach entrepreneurship and access to finance very early in schools
Data collection
Investor readiness training sessions
Have incubators and other facilitators to educate and prepare entrepreneurs
Local BA/VC forums
Media campaigns Light regulation for early stage investment market
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«EBAN Annual Congress»
Hosted by NBAA Russia
Moscow, 23-24 April 2012
www.ebancongress2012.org
INTERESTED IN LEARNING MORE?
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CONTACT DETAILS
EBAN SecretariatRue Vautier 541050 Bruxelles
+32 2 626 20 63
info@eban.orgwww.eban.org
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