first results of the survey on european early stage venture capital
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First results of the survey on European early stage venture capitalTRANSCRIPT
First results of the survey on European early stage venture capital
Luigi AmatiVice-President EBAN and CEO Meta Group
Miguel TrujilloCOO, EBAN
2
THERE ARE NEW ANIMALS IN THE JUNGLE
Last 40 EBAN Members
Networks 13Affiliate(individual angels) 6Funds 4Seed funds 5Associate 12
3
THERE ARE NEW ANIMALS IN THE JUNGLE
5 interesting new associate members
Continua Unt. AGConsultancy company + offline and online matching platform
Etohum
Marketplace, event, and business angel fund
ACTE
Networking and education association + crowdfunding platform
ClearlySo Social enterprises investment services
DFJ Esprit Venture capital network
4
THERE ARE NEW ANIMALS IN THE JUNGLE!
4 Interesting “new animals” to follow1. Co investment funds with BAs
2. Regional seed funds• Funded by ERDF money (JEREMIE or directly through RDAs)
3. Accelerators• A combination of seed investment and incubation services
4. Matching organisations• Support to early stage entrepreneurs with both capital and
mentorship
Definitions Source: EBAN’s Professional Standard Committee
5
CO INVESTMENT FUNDS WITH BUSINESS ANGELS
Some Examples• BAMS Angels Fund, Belgium• Business Angels Seed Fund,
Poland• Seed Rocket, Spain• Innvent, France• Zernike META Ventures, Italy• Mountain Partners, Switzerland• Oxford Technology, UK• PPM Oost NV, The Netherlands• The Russian Techology Fund,
Russia
44 identified by EBAN
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CO INVESTMENT FUNDS WITH BUSINESS ANGELS
EXAMPLE: ARK-ANGELS FUND (BELGIUM)• Created 2007• Size: 6.7 M€• Max life of the fund: June 2018• Type of fund: Public-private
partnership (50% private-50% government)
• Management: BAN Vlaanderen (1 Fund manager
• Dealflow Sources: BAN Vlaanderen
• Investment decision: Investment Committee
• Sectors: Generalist• Geography: Flanders
• % on exit: Pro rata the investment amounts
• Investments made since inception: 3M€
• % invested: 45%• Average amount of the deal:
250k€ (incl. follow-up investments)
• No. Companies Bankrupt: 1• Divestments: None yet• Typical exit: trade sale,
secondary buyout
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CO INVESTMENT FUNDS WITH BUSINESS ANGELS
SOME MARKET DATA
Source: BvD, based on sample 44 funds identified by EBAN
2006 2007 2008 2009 20100
10
20
30
40
50
60
70
80
5
1924
19
73
Evolution # Early-stage Deals
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CO INVESTMENT FUNDS WITH BUSINESS ANGELS
SOME MARKET DATA
Source: BvD, based on sample 44 funds identified by EBAN
2006 2007 2008 2009 20100
10
20
30
40
50
60
70
4
3125 21
58
Evolution Market Volume (M€)
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CO INVESTMENT FUNDS WITH BUSINESS ANGELS
SOME MARKET DATA
Source: BvD, based on sample 44 funds identified by EBAN
2006 2007 2008 2009 201005
101520253035404550
Evolution by Type of Financing
Co-investment FundIndividual Business AngelBusiness Angel SyndicateSeed FundOther early stage
Num
ber o
f Dea
ls
10
CO INVESTMENT FUNDS WITH BUSINESS ANGELS
SOME MARKET DATA
Source: BvD, based on sample 44 funds identified by EBAN
51%
17%
12%
8%
4%4% 3%
Top Countries per #Deals (2006-2010)
United KingdomGermanyFranceNetherlandsSwedenItalyIreland
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REGIONAL SEED FUNDS
Some Examples:• Jeremie Holding Fund, Lithuania• Ingenium Emilia Romagna, Italy• Slovenia SPS Fund, Slovenia• Almi Invest Stockholm AB,
Sweden• Finext Jeremie co-investment
fund, Hungary• ERP-EIF Dachfonds, Germany• Andalucía Jeremie Capital
Riesgo, Spain• Finance Wales JEREMIE Fund,
UK• Poland KFK Fund, Poland
• EBAN has identified a potential estimate of one fund per european region receiving ERDF money (aprox. 300 in total
• Most receive ERDF money, either through RDAs or through the JEREMIE scheme
• The EC has no centralised list of regional seed funds, which makes their identification difficult
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REGIONAL SEED FUNDS. EXAMPLE ALMI INVEST STOCKHOLM AB, SWEDEN
• Breakdown Capital Sources: 50% ALMI Foretagspartner– 50% ERDF
• Amount raised: 12.5M€• Target: SMEs in Stockholm Region. Any sector.• Investment stage: 50% Early-stage; 30% Expansion; 20% Later
Stages• Average investment per deal: 306k€ (1st round) 240k€ (later rounds)• Max investment per deal: 1.09M€ (1st round) 1.63M€ (later rounds)• Max Equity % acquired: 50%• Restrictions: Always syndicate with an investment partner (BA or
VC from Sweden or otherwise)
13
REGIONAL SEED FUNDSSOME MARKET DATA
Source: BvD, based on sample 29 funds identified by EBAN
2006 2007 2008 2009 201005
101520253035
16
10
18
32
Market Volume (M€)
14
REGIONAL SEED FUNDSSOME MARKET DATA
Source: BvD, based on sample 29 funds identified by EBAN
2006 2007 2008 2009 201005
101520253035
16
10
18
32
Market Volume (M€)
15
REGIONAL SEED FUNDSSOME MARKET DATA
Source: BvD, based on sample 29 funds identified by EBAN
2006 2007 2008 2009 20100
5
10
15
20
25
30
35
40
Evolution by Type of Financing
Co-investment FundIndividual Business AngelBusiness Angel SyndicateSeed FundOther early stageUnknown financing
Num
ber o
f Dea
ls
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ACCELERATORS AND MATCHING PLATFORMS
SOME EXAMPLES
Matching platforms
Founder InstituteGammaRebelsIgnite100Seedcamp Startup
Bootcamp StartupYard White Bear
Yard
Accelerators
Boralis Crealys H-Farm MedCrunchSEED CAPITALSICS Seed AcceleratorSTING Business Accelerator
Accelerators identified in Europe 30
Matching platforms identified in Europe 22
With funding attached 15
With funding attached 15
Accelerators that take equity shares 11
Matching platforms that take equity shares 10
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ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA
Top 10 countriesby number of accelerators
and MPsUK 10Italy 6Whole Europe 4Finland 4Ireland 4Spain 3Netherlands 3Czech Republic 2France 2Sweden 2
% of total in Europe 75%
Source: EBAN
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ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA
Source: EBAN
8% 2%
34%
43%
13%
# of accelerators and matching platforms per period of establishment
1999 - 2000
2001 - 2005
2005 - 2009
2009 - 2011
Not specified
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ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA
Source: EBAN
58%
4%
38%
Funding information
Accelerators with funding attachedAccelerators with no fund-ing attachedNot specified
20
ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA
Source: EBAN
No funding4%
<50k38%
50 - 100k4%100 - 250k
8%>250k
4%
Variable4%
Not speci-fied40%
Breakdown by amount of funding
21
ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA
38
7
66
18
25
2
Accelerators involvement by sector
ICT
Bio-engineering/Health
Cleantech
Hi-tech
E-commerce
Services
FMCF
FMCF: Fast Moving Consumer Goods
Source: EBAN
22
Country: ItalyYear of establishment: 2000 23 companies in
incubation as of March 2011, both start-ups and spin-offs
EXAMPLE: POLITECNICO DI MILANO’S INCUBATOR
Sectors of interest
Success stories
ICT
Bio-engineering
Clean-tech
Video e Podcast
Source: websites
23
EXAMPLE:BORALIS ACCELERATOR
Country: NetherlandsYear of establishment: 2009 Typical funding: 50,000-
100,000 EUR
Sectors of interest
Success stories
On-line event organization
E-commerce
Source: websites
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EXAMPLE MATCHING PLATFORM : LE CAMPING
Country: FranceYear of establishment: 2010Typical funding: 4,500 EUR
per projectAcceleration programme:
Sept – Dec 2011Plan for growth: Dec 2011
– March 2012Media Day: where teams
present their projects and growth strategies
Mentoring programme included
Source: websites
Sectors of interestStart-ups Sept 2011 -
March 2012
Social networks
On-line sharingVIEWRZ
Social games
25
EXAMPLE MATCHING PLATFOM:WHITE BEAR YARD
Country: UKTypical funding: 10,000 - 250,000 GBP
Mentoring programme included
Source: websites
Sectors of interest Teams
Social platforms
Software applications
RjDj
E-commerce
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FINDINGS
• Yes, there are “new animals” in our "jungle“!• “New animals” are increasingly appearing on the
market. • Their numbers (in our limited sample) exploded
in 2010 but real growth rate will take more research and years to be judged.
• “New animals‘ “ most active market is UK.• EBAN is willing to be open minded and inclusive
with these "new animals", provided that they follow EBAN’s good practices
