First results of the survey on European early stage venture capital

First results of the survey onEuropean early stage venture capital Luigi Amati Vice-President EBAN and CEO Meta Group Miguel Trujillo COO, EBAN

THERE ARE NEW ANIMALS IN THE JUNGLE Last 40 EBAN Members Networks 13 Affiliate (individual angels) 6 Funds 4 Seed funds 5 Associate 12 2

THERE ARE NEW ANIMALS IN THE JUNGLE5 interesting new associate members Consultancy company + offline and Continua Unt. AG online matching platform Marketplace, event, and business Etohum angel fund Networking and education association ACTE + crowdfunding platform ClearlySo Social enterprises investment services DFJ Esprit Venture capital network 3

THERE ARE NEW ANIMALS IN THE JUNGLE!4 Interesting “new animals” to follow1. Co investment funds with BAs2. Regional seed funds • Funded by ERDF money (JEREMIE or directly through RDAs)3. Accelerators • A combination of seed investment and incubation services4. Matching organisations • Support to early stage entrepreneurs with both capital and mentorship 4 Definitions Source: EBAN‟s Professional Standard Committee

CO INVESTMENT FUNDS WITH BUSINESS ANGELS Some Examples • BAMS Angels Fund, Belgium • Business Angels Seed Fund, Poland 44 • Seed Rocket, Spain identified • Innvent, France by EBAN • Zernike META Ventures, Italy • Mountain Partners, Switzerland • Oxford Technology, UK • PPM Oost NV, The Netherlands • The Russian Techology Fund, Russia 5

CO INVESTMENT FUNDS WITH BUSINESS ANGELS EXAMPLE: ARK-ANGELS FUND (BELGIUM)• Created 2007 • % on exit: Pro rata the• Size: 6.7 M€ investment amounts• Max life of the fund: June 2018 • Investments made since• Type of fund: Public-private inception: 3M€ partnership (50% private-50% • % invested: 45% government)• Management: BAN Vlaanderen • Average amount of the deal: (1 Fund manager 250k€ (incl. follow-up• Dealflow Sources: BAN investments) Vlaanderen • No. Companies Bankrupt: 1• Investment decision: Investment • Divestments: None yet Committee • Typical exit: trade sale,• Sectors: Generalist secondary buyout• Geography: Flanders 6

CO INVESTMENT FUNDS WITH BUSINESS ANGELS SOME MARKET DATA Evolution # Early-stage Deals8070 736050403020 24 19 1910 50 2006 2007 2008 2009 2010 7 Source: BvD, based on sample 44 funds identified by EBAN

CO INVESTMENT FUNDS WITH BUSINESS ANGELS SOME MARKET DATA Evolution Market Volume (M€) 70 60 58 50 40 30 31 20 25 21 10 0 4 2006 2007 2008 2009 2010 8 Source: BvD, based on sample 44 funds identified by EBAN

CO INVESTMENT FUNDS WITH BUSINESS ANGELS SOME MARKET DATA Evolution by Type of Financing 50 45 40Number of Deals 35 30 Co-investment Fund 25 Individual Business Angel 20 Business Angel Syndicate 15 Seed Fund 10 Other early stage 5 0 2006 2007 2008 2009 2010 9 Source: BvD, based on sample 44 funds identified by EBAN

CO INVESTMENT FUNDS WITH BUSINESS ANGELS SOME MARKET DATA Top Countries per #Deals (2006-2010) 4% 4% 4% United Kingdom 8% Germany France 12% Netherlands 51% Sweden Italy 17% Ireland 10 Source: BvD, based on sample 44 funds identified by EBAN

REGIONAL SEED FUNDS• EBAN has identified a Some Examples:potential estimate of one fund • Jeremie Holding Fund,per european region receiving LithuaniaERDF money (aprox. 300 in • Ingenium Emilia Romagna, Italytotal • Slovenia SPS Fund, Slovenia • Almi Invest Stockholm AB,• Most receive ERDF Swedenmoney, either through RDAs or • Finext Jeremie co-investmentthrough the JEREMIE scheme fund, Hungary • ERP-EIF Dachfonds, Germany• The EC has no centralised • Andalucía Jeremie Capitallist of regional seed Riesgo, Spainfunds, which makes their • Finance Wales JEREMIEidentification difficult Fund, UK • Poland KFK Fund, Poland 11

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) 12

REGIONAL SEED FUNDS SOME MARKET DATA Market Volume (M€)3530 32252015 1810 10 5 6 0 1 2006 2007 2008 2009 2010 13 Source: BvD, based on sample 29 funds identified by EBAN

REGIONAL SEED FUNDS SOME MARKET DATA Market Volume (M€)3530 32252015 1810 10 5 6 0 1 2006 2007 2008 2009 2010 14 Source: BvD, based on sample 29 funds identified by EBAN

REGIONAL SEED FUNDS SOME MARKET DATA Evolution by Type of Financing 40 35 30Number of Deals Co-investment Fund 25 Individual Business Angel 20 Business Angel Syndicate 15 Seed Fund 10 Other early stage Unknown financing 5 0 2006 2007 2008 2009 2010 15 Source: BvD, based on sample 29 funds identified by EBAN

ACCELERATORS AND MATCHING PLATFORMS SOME EXAMPLES Matching Accelerators Matching platformsAccelerators platformsidentified in identified in Founder BoralisEurope 30 Europe 22 Institute CrealysWith funding With funding GammaRebe H-Farmattached 15 attached 15 ls MedCrunchAccelerators that Matching Ignite100 SEEDtake equity platforms that take CAPITAL Seedcampshares 11 equity shares 10  Startup SICS Seed Bootcamp Accelerator StartupYard STING  White Bear Business Yard Accelerator 16

ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA Top 10 countries by number of accelerators and MPs UK 10 Italy 6 Whole Europe 4 Finland 4 Ireland 4 Spain 3 Netherlands 3 Czech Republic 2 France 2 Sweden 2 % of total in Europe 75% Source: EBAN 17

ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA # of accelerators and matching platforms per period of establishment 13% 8% 2% 1999 - 2000 34% 2001 - 2005 43% 2005 - 2009 2009 - 2011 Not specified 18 Source: EBAN

ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA Funding information 38% 58% Accelerators with funding attached Accelerators with no 4% funding attached Not specified 19 Source: EBAN

ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA Breakdown by amount of funding No funding 4% Not specified <50k 39% 38%Variable 100 - 50 - 100k 4% >250k 250k 4% 4% 7% 20 Source: EBAN

ACCELERATORS AND MATCHING PLATFORMS: MARKET DATA Accelerators involvement by sector 2 ICT 25 Bio-engineering/Health 38 Cleantech Hi-tech E-commerce 18 ServicesSource: EBAN 7 6 6 FMCF 21 FMCF: Fast Moving Consumer Goods

EXAMPLE: POLITECNICO DI MILANO’S INCUBATOR Country: Italy Year of establishment: 2000 23 companies in incubation as of March 2011, both start-ups and spin-offs 22 Source: websites

EXAMPLE: BORALIS ACCELERATOR Sectors of Success stories interest Country: Netherlands Year of establishment: 2009 E-commerce Typical funding: 50,000- 100,000 EUR On-line event organization 23 Source: websites

EXAMPLE MATCHING PLATFORM : LE CAMPINGCountry: FranceYear of establishment: 2010 Typical funding: 4,500 EUR per project Acceleration programme: Sept – Dec 2011 Plan for growth: Dec 2011 – March 2012 Media Day: where teams present their projects and growth strategies Mentoring programme included 24 Source: websites

EXAMPLE MATCHING PLATFOM: WHITE BEAR YARDCountry: UKTypical funding: 10,000 - 250,000 GBPMentoring programme included 25 Source: websites

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 26

CONTACT EBAN SecretariatRue Vautier 541050 Brusselswww.eban.org 27

First results of the survey on European early stage venture capital

by Miguel Angel Lopez Trujillo on Oct 27, 2011

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First results of the survey on European early stage venture capital — Presentation Transcript