2. Summary
The Italian Informal Venture and Angel Capital Market
1) IBAN Association
2) IBAN Survey 2013: national situation of Angel Investing
3) Angel Investing and Innovation
3. 1.1. IBAN Association
Our Network to sustain Informal Venture Capital Market
FINANCING
INSTITUTIONS
NATIONAL AND
INTERNATIONA
L PARTNERS
BUSINESS
ANGELS
SERVICES TO
SME’s
TECHNOLOGY
CENTRES
IBAN
Over the years IBAN has created a strong
"relationship network" that provides a
common factor to the skills and
experiences of many organizations and
operators in the sector, covering the
entire "value chain" of "early stage”
phase of SME’s.
In this way IBAN can effectively support
the start-up in the process of growth and
value creation.
*They are former business owners or managers in business who have financial resources
(although limited), a good network of knowledge, a strong management skills and a good track
record. They have the taste of running a business, the desire to acquire a stake in companies with
high growth potential and interest to monetize a significant gain at the time of the exit, the goal
of Business Angels is to contribute to the economic success of company and the creation of new
jobs.
IBAN Association is the institution that best understands and represents Italian Business Angels*
4. 1.2. IBAN Association
At glance – 1/2
Italian Business Angels Network Association (IBAN) is a non-profit making association under the Italian
law, focused on the development and the growth of the Business Angels phenomena in Italy. It was
founded on March 1999 in the framework of a project launched by the European Commission – DG
Enterprise. Early 2013, IBAN has been founding member of BAE, Business Angel Europe association.
In Italy, IBAN represents and promotes investment initiatives in the venture capital market coming from
informal investors, usually called Business Angels (BA).
IBAN has been founder member of EBAN.
IBAN is founder member of WBAA - World Business Angels Association.
IBAN is founder member (2013) of BAE - Business Angel Europe Association. BAE contribute to create the
lobbying and market platform for angel investing in Europe and the reinforcement of National
Associations.
Today, IBAN represents more than 450 informal investors community across all Italy.
In addition, IBAN has links with Italian Venture Capital Association (AIFI) and local and national
associations of entrepreneurs; together with AIFI.
5. 1.3. IBAN Association
At glance – 2/2
IBAN’s expertise include:
• Increasing the sources of financing for unlisted SMEs and start-ups.
• Scouting and helping the financing of start-ups and SMEs (investment readiness).
• Recruiting BAs and facilitate the setting up of BA networks and clubs (ready to invest).
• Organizing investments forum between investors and companies searching for capital.
• Organizing Business Angels Academy training events.
• Stimulating the exchange of experience among business angels networks and encouraging “best
practices”.
IBAN’s members are BANs, investors clubs, business angels and professionals in matching investors
(formal and informal) with entrepreneurs.
6. 4.4. Italian BA Profile
BA's personal profile from a recent Survey
IBAN Association
Business Angels &
professionals
B.A.N. - regional
operating area and
focus on cross-
sector businesses
B.A.N. -
national/international
operating area ad focus
on cross-sector
businesses
Angel Investors
Club
1.4. IBAN Association
Network structure
IBAN has close relationships with leading Italian law firms and fiscal&tax advisors. Thanks to
this, IBAN members are entitled to access detailed information on Angel Investing and on legal
and fiscal news related to risk capital investing, as well as an operating guide on main
contractual obligations and terms that Entrepreneurs and Investors have to agree upon, in
preparation to the closing of the deal.
7. 1.5. IBAN Association
Main actions carried out by IBAN
• IBAN created http://www.iban.it , a website with an average of 10,000 visitors each month.
• Published a "White Paper” about innovation business, according to the dictates of the
European Charter of Lisbon, presented proposals to the Italian Ministry and European
Community.
• Organized and / or participated in over 350 seminars and conferences in all Italian regions and
abroad.
• Received the European Award of EBAN, for "Best Lobbying initiative in support of business
angels and early stage investors“.
• Received positive recognition from the Italian government, Consob, Italian Stock Exchange,
the Chamber's system, the Industrial Districts Club, various regional and provincial
Administrations, as well as the business community.
• Over the years, IBAN has appeared in many articles of national media and
financial&innovation press. http://www.iban.it/it/dicono-di-noi
8. 8
1.6. IBAN Association
Our Publications to sustain Informal Venture Capital culture
• “White Paper – proposals for the development of startup” – 2014, in partnership with CBA Studio
Legale e Tributario.
•“White Paper – proposals for the development of Venture Capital in Italy” – 2011, by the
Commission Venture Capital AIFI. IBAN Association oversaw the part of the Angel Investing.
•“Legal and Fiscal handbook for BA” - 2010, in partnership with Studio Legale Gianni, Origoni, Grippo
& Partners.
•“Formal Documents for Early Stage Phase” (NDA, Investment Agreement,Term Sheet) - 2010, with
Studio Legale Rossotto & Partners
•“Business Angels and Informal Venture Capital in Italy” - 2009, in collaboration with SDA Bocconi
University – Finance Department
•“Implementation of European MiFiD Directive and IBAN circuit activity”, 2008 – in collaboration
with Studio Simmons & Simmons.
•“Guide to setting up a business with Business Angel” - 2008, in collaboration with KPMG Italia.
•“Business Angel in Italy” - 2003, in cooperation with the II° Università di Napoli.
•"Guide to Business Plan" - 2002, in collaboration with AIFI and PriceWaterhouseCoopers.
•“Standard Behavior Handbook for BAN” – 2001, in partnership with ISTUD Foundation.
9. 1.7. IBAN Association
Objectives reached in 15 years of business
1. Improvement of European best practices, through close collaboration between IBAN
and the other partners of BAE
2. The role of business angels, as an economic operator, continues to grow:
• sharp increase in the number of deals closed in the last 5 years
• recognition of the importance of BA in the financial market
3. The Italian government has approved the tax exemption on capital gains on Angel
Investing (Law 133/08, article 3)
4. During 2012 the Association IBAN has been approached both by Banca d’Italia and by
the Ministry of Economic Development with regard to measures to support the
sector (Law 221, 17 december 2012).
10. Total business projects received in 2013 (through IBAN website): 667
Business projects with structured Executive Summary: 202
Business projects - High
Rating: 103
Business projects - Low
Rating: 99
Limited number of business project
with high-quality documentations
Source: IBAN Association, internal data 2013
1.8. IBAN Association
Business projects received by IBAN (2013)
11. IBAN Survey 2013 (1/3)
Data at glance
• IBAN Survey 2013 Sample Size is composed by 246 Business Angels, divided in direct IBAN
Members, indirect IBAN Members (belonging to Club or BAN associated with IBAN), and other
investors selected by IBAN Association.
• In 2013, thanks to IBAN Survey, we observed that the investments’ total amount is about €
31.857.000. This amount was invested through 324 investment operations, concerning 165
companies (27% startup stage & 44% seed stage).
• The average total amount is about € 193.072 for invested project and € 98.000 for individual
investment transactions.
• IBAN Survey 2013 confirms the strengthening of operations made by Business Angels
Syndications. This is due mainly to the bigger capital gathering (that gives the possibility to invest
in larger startups and in more industries) together with lower risks.
• BA investments were targeted mainly on ICT, followed by Media&Entertainment and Medtech,
industries characterized by high potential growth and high innovation. Moreover, investments
(also by Corporate Venturing) are increasing in the following business sectors: food, industry
devices and social media.
2.1. IBAN Survey 2013
Data at glance – 1/3
12. IBAN Survey 2013 (1/3)
Data at glance
2.2. IBAN Survey 2013
Data at glance – 2/3
Source: IBAN, Survey 2013
Main Figures Year 2013
Sample ( 50% IBAN Members) 246 answers
Total investments 31.857.000 €
Individual investment operations 324
Invested Companies 165
Analyzed projects 767
Individual Investment Average amount 98.000 €
Declared Exit 19
15. Source: Iban, Survey 2013
2.5. Business Angels’ Investments
Value of Investments – 2/2
16. Source: Iban, Survey 2013
Business Angels’ Investments (3/4)
Number of investment by sector
2.6. Business Angels’ Investments
Business Sectors
17. Source: Iban, Survey 2013
• During last year, only 19 disinvestment operations (exit) were declared. It is clear that the
current economic environment influences investors’ behavior: exits were delayed, waiting for
better economic conditions;
• Only 10% of sample declared a disinvestment operation in 2013;
• The greatest number of exits is concentrated in ICT and Medtech sectors.
2.7. Business Angels’ disinvestments
Data at glance
18. Source: Iban, Survey 2013
• The typical Italian BA is a 40-50 years old man, he has a high educational degree (82,7%) who
mainly lives in Northern Italy.
• Generally is an entrepreneur with past experience as a manager, declare assets lower than € 2
mln and invests 10% of its available “cash” assets in the angel investing market.
2.8. Business Angels’ identikit
Characteristics and investment behavior
19. • At the moment of the BA investments in a start-up, most of them have an avg. of 0-5
employees;
• At the moment of the BA exit (avg. around 4 year), the same company employ 8-10 people;
• In the past three years, on a 62 deal sample, the investment of a Business Angel and his/her
engagement in the company management have contributed to the creation of 650 new jobs
and working places;
• Recent indicators show that majority of new jobs come from companies that no more than 5
year old;
• BA involvement in early stage developments also facilitates deals of Corporate Venturing,
industry players and market leaders investing in start-ups.
3.1 Angel Investing supports Startups
Facilitating new jobs creation and the matching of Innovation
with Industry
20. www.iban.it
Via Ampère, 61/A
20131 Milan – Italy
Tel. +39 02 30.51.60.49
Fax +39 02 30.51.60
segreteria@iban.it
Paolo Anselmo - IBAN President
presidenza@iban.it
Member of:
