EBAN Presentation


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Η παρουσίαση της Claire Munck, Managing Director του ΕΒΑΝ, στο ΥΕS EXECOM της Θεσσαλονίκης, Παρασκευή 25 Ιουνίου 2010

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EBAN Presentation

  1. 1. The role of angel investors in the promotion of entrepreneurship in Europe Claire Munck Managing Director EBAN YES ExeCom, June 2010
  2. 2. WHO ARE BUSINESS ANGELS? Business Angel: Private individual investing own wealth in early stage businesses AND own expertise and network of contacts <ul><li>Investment 25 000 - 250 000 euro </li></ul><ul><li>Willing to share their managerial skills, specialist knowledge and networks </li></ul><ul><li>No sector preference </li></ul><ul><li>Often prefer to invest in their region of residence </li></ul><ul><li>Seeking profit, but also fun </li></ul><ul><li>Usually total investments below 15% of wealth </li></ul><ul><li>Can become involved in the business (“active Angel”) or not (“passive Angel”). </li></ul>
  3. 3. ANGEL BACKED COMPANIES InkSpin1 Aventiv NV (Ltd.) Michelson Diagnostics
  4. 4. ANGELS AND OTHER SOURCES OF FINANCE Capital Needs Time Seed Start-up Early Growth Sustained Growth Higher Risk Lower Risk Friends, Family & Founders Business Angels Venture Capital Funds IPO 0 <ul><li>Angels help fill the ‘Equity Gap’ </li></ul>Early stage and seed venture funds
  5. 5. WHY DO WE NEED MORE BUSINESS ANGELS? Source: EVCA Year Book 2009 Stage distribution of investments per year >Different amounts invested >Complementary roles
  6. 6. WHAT BUSINESS ANGELS LOOK FOR <ul><li>Current & comprehensive Business Plan </li></ul><ul><li>Proven market - USP </li></ul><ul><li>High growth / scalable / strong business forecast (5m€/3yrs) </li></ul><ul><li>Intellectual property protection </li></ul><ul><li>Realistic pre-money valuation </li></ul><ul><li>Exit strategy </li></ul><ul><li>BUT Entrepreneur’s qualities are most important i.e. strong and committed management team </li></ul>
  7. 7. THE CONTRIBUTION OF BUSINESS ANGELS <ul><li>2 wings: capital + mentoring/coaching </li></ul><ul><li>Invest early – take a higher risk </li></ul><ul><li>Invest in different sectors </li></ul><ul><li>More flexible and reactive than other investors </li></ul><ul><li>BA give access to networks and new potential customers </li></ul><ul><li>BA acts as an ambassador for the business = credibility </li></ul><ul><li>Easier to raise follow-on funding </li></ul>
  8. 8. TRENDS IN EUROPE Average amount of the deal in 2008: 200.000€ 2008 Europe 2010-2013 Networks 334 For profit 31% Estimate n of angels and private investors 75k Investment per round 207k€ Total estimate invested annually 4 billion€ 2008 Europe 2010-2013 Networks 334 For profit 31% Estimate n of angels and private investors 75k Investment per round 207k€ Total estimate invested annually 4 billion€
  9. 9. SECTORS OF INVESTMENT ICT & Software still dominating sectors – Clean tech and health « hot » sectors
  10. 10. THE IMPACT OF THE CRISIS <ul><li>Equity gap is widening </li></ul><ul><li>Increased dealflow – better valuations </li></ul><ul><li>Angels have continued to invest – role of providers of capital AND knowledge/experience valorized </li></ul><ul><li>Intermediaries impacted </li></ul>
  11. 11. WHAT POLICY MAKERS CAN DO <ul><li>Awareness campaigns </li></ul><ul><li>Support to the creation of business angel networks </li></ul><ul><li>Support the creation of a national federation </li></ul><ul><li>Investment and investor readiness programmes </li></ul><ul><li>Public-private co-investment funds </li></ul><ul><li>Fiscal incentives </li></ul>>To be carried out with the support of stakeholders i.e. business and entrepreneur organisations
  12. 12. DELIVERING VALUE TO OUR MEMBERS Business angel networks Federations of networks Individual angels Associate members Over 100 member organisations – Representing 300 BANs – 28 countries Seed funds
  13. 13. <ul><li>ICT SMEs currently receiving FP support for R&D </li></ul><ul><li>Post proof of concept / pre-commercial </li></ul><ul><li>SME mapping, selection, coaching, investment readiness </li></ul><ul><li>SME« plugging » into investment events </li></ul><ul><li>ICT Investor mapping and sustainable network </li></ul><ul><li>www.access-ict.eu ; www.ict-finance-marketplace.eu </li></ul>
  14. 14. EARLY STAGE INVESTING: AN ASSET CLASS 9 th Winter University hosted by Sophia Business Angels 18/19 November 2010, French Riviera Making your first investments to exit strategies Investing local and thinking global Collaborating with other investors European and international experts and practitioners BAN/Seed fund managers/Investors/Incubator managers, etc Networking, learning opportunities www.eban.org
  15. 15. CONTACT DETAILS EBAN Secretariat +32 2 626 20 60 www.eban.org Thank you for your attention!