Download - Business Angel Networks in Germany & Serbia
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7th MERR International SMEs Conferencef
Workshop 4: New Instrument for Financing of Innovative SMEs
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
ACCESSProgramme for Private Sector Development in Serbia
Belgrade, 4th October, 2011
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Business Angel Networks
Status quo in Germany & Cooperation with the Serbian Business Angel Network (SBAN)
Jürgen KappenmannConsultant GIZ ACCESS
KARER CONSULTING AG
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Introduction GIZ ACCESS Status quo in Germany Role & Functions of Business Angels Figures & Trends - Business Angels in Germany Business Angel Networks in Germany
Cooperation with SBAN Capacity Building SBAN & Knowledge Transfer Model “Innovative Projects Cycle 2010”
Current Issues
Content
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ACCESS Structure
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Know-how
Economically independentprivate investors
Investment between50.000 and 500.000 EUR
Interested in Return on Investment
Knowledge
Experience
Network & Contacts
Coaching
Fun
Role & Function of Business Angels
Capital
Definition: Business Angels are high net worth individuals investing their own money and their management/entrepreneurial experience into
unquoted high growth potential start-ups and SMEs (= Smart Capital).
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Number of BAs:more than 5.000 (UK: 20K, USA: 230K)
Accumulated Average Investment per Business Angel:27.000 € in Q2 2011 (down from 100K € in 2008, in UK ~ 48K €)
Total Volume of Early Stage Investment Asset Class:over 400 Mio. € (~ 4 bill. € in Europe in 2010 from 1 bill. € in 2005)
Capital Ownership Percentage:15% are majority owners, 54% hold less than 10% (in Q2 2011)
Targeted Companies:Companies with high growth potential, excellent management & clear exit strategy
Preferred Industries (Q2 2011):Energy, E-business, Environmental Techn., Medical Equipment, New Materials
Number of Received Business Plans per BA:17 per Q2 (from 19,5 in Q1 2011)
Figures & Trends – BAs in Germany
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Founded in 1998, support the BA market and build up a “New Culture of Entrepreneurship”
Role, Function & Activities Umbrella organization of the informal venture capital market in Germany Representation of business angel networks towards public & public sector PR, awareness campaigns (Business Angel Year 2010), trainings etc. Quarterly Business Angel Panel
Annual Matchmaking Event German Business Angel Day
43 Regional and Local Networks (network types) Network as a Public Project (50%) Network as a (Business) Association (30%) Network as a private Club
BAND – Business Angel Network Germany
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Definition: Business Angel Networks are national or regional, local, commercial or industry sector organizations set up to promote means of introduction between young innovative SMEs and private investors with entrepreneurial experience (business angels).
Role & Services for SMEs and Start-ups: Service Provider: information, know-how, consulting, financing, networking,
planning
BA Networks provide certain standards and best practices
Active cooperation of many partners in the region guarantees target-oriented and precise support
Essential function: provision of networking through opening importantcontact and communication channels
Example: Netzwerk Nordbayern
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Example: Netzwerk Nordbayern (Partner Network)
NetworkNorthern Bavaria
Ministry ofEconomy
Uni-versities
Chamberof Comm-
erce
Innovation & Techno-
logyCentres
Jurors Business
Plan Contest
Public EntitiesSponsors
IndustryClusters
Business Asso-
ciations
Companies
Business Angels &
VCs
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Model Project Cycle 2010 - Overview
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Selection of 15 Ideas (out of 150+)
“One Pager”
Involvement of partner network
Ideas from different industries IT & SW Develop., E-business Energy & Environmental Technology Food Media & Entertainment
Model Project Cycle 2010 – Ideas & Selection
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6 Training & Coaching Sessions were held (5 + Legal) Based on the “Ready for Equity - Training for Business Angel and
Entrepreneurs” scheme
Model Project Cycle 2010 - Trainings & Coachings
No. Trainings
1 Business Angels and Equity Market
2 How to Prepare for Meetings with Investors (executive summary, team building, enterprise value)
3 The Perfect Presentation
4 Negotiations
5 Coaching Sessions
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Organization of Investment Conferences (“matchmaking”) Local Regional
Matchmaking according to a defined presentation procedure (“pitching”)
17 investors present during the first investment conference alone
Model Project Cycle 2010 – Matchmaking
Results: 15 companies trained for matchmaking with investors “quality deal flow” initiated first negotiations between companies on concrete investments SBAN established as a serious player in the field
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General Impact of the global financial crisis Enterprise Investment Scheme (EIS) (Organized) syndication Growing recognition of BAs´ in SME development
In Serbia (start-ups, SMEs, BAs) About 45% of start-up companies don’t survive first two years of operations Complex and expensive procedures and regulations in whole life cycle Access to financing is one of the key issues Taxation issues for investors Capacity building for SBAN: institutional and financial support
Current Issues
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Thank youfor your attention
ContactGIZ / ACCESSProgram LeaderTobias StolzMakenzijeva 24/511 000 Belgrade, SerbiaTel.: +381 11 240 03 [email protected]