The document discusses finding angel investors for startup funding. It outlines that business angel networks in Germany can connect startups to over 1,500 angel investors. The Business Angels Netzwerk Deutschland (BAND) is the national association of angel investors in Germany. The document recommends startups attend networking events, pitch competitions, and use programs like INVEST to improve access to angel funding. It highlights a new initiative called GreenUpInvest that specifically matches green tech startups with angel investors interested in environmental projects.

1. Sponsoren
How, where and why to look for
angel funding
Startup Camp 2017
Green Startups Camp
APRIL 7th, 2017
Matthias Wischnewsky, Project Manager,
Business Angels Netzwerk Deutschland e.V. (BAND)

2. Outline
About BAND
Why to look for angel funding
How and where to look for angel funding
Conclusion and discussion

3. About BAND
• BAND: national association of Germany‘s BA market
• 173 members (as of March 31st, 2017)
• Contact point for start-ups seeking seed capital
• Organization of workshops and conventions (Deutscher Business
Angels Tag)
• PR work for the angel scene
• Lobby work (regulatory framework, incentive programme INVEST)

4. Deutscher Business Angels Tag
• Benchmark event of the German angels market
• Nuremberg 2016:
– more than 600 participants
– Three sessions about greentech and impact investing
• Next Event: spring 2018, Hamburg

5. Why to look for angel funding?

6. What is an angel investor?
“A knowledgeable private individual, usually with business
experience, who directly invests part of his or her personal
assets in new and growing unquoted businesses. Besides
capital, business angels provide business management
experience for the entrepreneur.”
Definition by the European Commission

7. Why? Money…
• Investment sum of typically EUR 25,000 to 500,000 EUR
– Example: R&D-intensive industrial companies
• Average investment sum of EUR 294,000
• Median of EUR 50,000
• A lot of „small“ investment sums, little big investment sums
• Shares:
– In 38% of angel-backed high-tech companies, angel investors
hold up to 10% shares.
Egeln, Jürgen; Gottschalk, Sandra: Finanzierung von jungen Unternehmen in Deutschland durch Privatinvestoren,
Mannheim, April 2014 (ZEW Zentrum für Europäische Wirtschaftsforschung GmbH)

8. Why? Everything else…
• Hands-on mentality
• Significant experience to benefit your start-up
– Sector
– Entrepreneurial skills
– Professional skills your team lacks
• Connection to other investors (not only angels but
institutional investors)

9. How and where to look for
angel funding?

10. Business Angels in Germany
According to ZEW1:
• 7,500 active angel investors
• Investment volume: € 650m annually
According to internal surveys:
• 1,500 angels are organized in regional networks, who are
members in BAND
1 Egeln, Jürgen; Gottschalk, Sandra: Finanzierung von jungen Unternehmen in Deutschland durch
Privatinvestoren, Mannheim, April 2014 (ZEW Zentrum für Europäische Wirtschaftsforschung GmbH)

11. Business Angels Panel
Quarterly Questionnaire1
Around 50 Business Angels are polled,
results are published in VDI Nachrichten
and on BAND’s website.
1 http://www.business-angels.de/marktinformationen/business-angels-panel/

13. Finding an angel…
• Activate and make use of your own network
– Colleagues, founders, professors, enrepreneurs you know
• If you don‘t have one…build one
– Start-up events, pitch events, business plan competition, awards,
accelerators etc.
• Approach business angel networks (either via BAND or
directly)

14. Angel Networks
• 37 networks in Germany are members of BAND
• By sending the one pager to BAND, you can reach about
1,500 angel investors
• Contact the networks one by one for a chance to pitch

15. • Governmental Incentive:
– INVEST – grant for business angel capital
– 20% tax free grant of investments up to € 500,000 into young,
innovative companies
– Additionally, exit grant to eliminate or reduce taxation
– Apply for eligibility before approaching angels
www.invest-wagniskapital.de

16. Why INVEST? Angels like it
• According to 2016 ZEW evaluation:
– 97 % of investors (and 64% of start-ups) would use the program
again
– Little deadweight effect: 88 % of the grant was used by investors
to increase their investment, only 12 % to minimize risk
• Greentech start-ups now have it easier to access INVEST
(new ruling considering innovative companies)

17. The Green Start-up Investment Alliance
What do we do?
GreenUpInvest seeks to improve the financial conditions for promising and innovative
green start-ups in Germany. We wish to raise the numbers and improve the capability
of green start-ups so that these can contribute towards environmental protection
through successful market launches and the diffusion of their environmentally friendly
products and services.

18. • High-Level-Matching
– Bringing together greentech start-ups with greentech investors
– Workshops / Qualification
– Pitching
– Networking / facilitating deals
• First event in Düsseldorf, February 2nd, 2017
– 100 participants (40 investors, 10 pitching start-ups)
– Winner of the pitch: Creapaper GmbH
• Next event in Berlin (December 2017):
http://www.business-angels.de/high-level-matching/
GreenUpInvest – specific efforts

19. Awareness-raising
• Start-up Forum Energy at Hannover Messe!
• Meet-up at the EnergyEfficiencyCentre on Friday 28th,
2017
• Start-ups can still apply for a pitch here:
– wischnewsky@business-angels.de

20. Conclusion
• Finding (the right) angel(s) can be a long journey
• Make use of networking and matching events (e.g.
GreenUpInvest, business angel networks etc.)
• Talk, talk, talk about your business
• Benefit from governmental incentive INVEST

21. Sponsoren
Thank you for your attention!
Matthias Wischnewsky
wischnewsky@business-angels.de
www.business-angels.de