Business Angel Networks in Germany & Serbia

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Presentation on Business Angel Networks in Germany and Serbia for the 7th Int. SME Conference of the Serbian Ministry of Economy & Regional Development in Belgrade on October 4th, 2011.

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Business Angel Networks in Germany & Serbia

  1. 1. 7th MERR International SMEs Conference fWorkshop 4: New Instrument for Financing of Innovative SMEsDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH ACCESS Programme for Private Sector Development in Serbia Belgrade, 4th October, 2011 06.10.2011 Seite 1
  2. 2. Business Angel NetworksStatus quo in Germany & Cooperation with the Serbian Business Angel Network (SBAN) Jürgen Kappenmann Consultant GIZ ACCESS KARER CONSULTING AG 06.10.2011 Seite 2
  3. 3. Content  Introduction GIZ ACCESS  Status quo in Germany  Role & Functions of Business Angels  Figures & Trends - Business Angels in Germany  Business Angel Networks in Germany  Cooperation with SBAN  Capacity Building SBAN & Knowledge Transfer  Model “Innovative Projects Cycle 2010”  Current Issues 06.10.2011 Seite 3
  4. 4. ACCESS Structure 06.10.2011 Seite 4
  5. 5. Role & Function of Business Angels Capital Know-how Economically independent  Knowledgeprivate investors  Experience Investment between  Network & Contacts 50.000 and 500.000 EUR Interested in Return on CoachingInvestment Fun Definition: Business Angels are high net worth individuals investing their own money and their management/entrepreneurial experience into unquoted high growth potential start-ups and SMEs (= Smart Capital). 06.10.2011 Seite 5
  6. 6. Figures & Trends – BAs in Germany Number of BAs: more than 5.000 (UK: 20K, USA: 230K) Accumulated Average Investment per Business Angel: 27.000 € in Q2 2011 (down from 100K € in 2008, in UK ~ 48K €) Total Volume of Early Stage Investment Asset Class: over 400 Mio. € (~ 4 bill. € in Europe in 2010 from 1 bill. € in 2005) Capital Ownership Percentage: 15% are majority owners, 54% hold less than 10% (in Q2 2011) Targeted Companies: Companies with high growth potential, excellent management & clear exit strategy Preferred Industries (Q2 2011): Energy, E-business, Environmental Techn., Medical Equipment, New Materials Number of Received Business Plans per BA: 17 per Q2 (from 19,5 in Q1 2011) 06.10.2011 Seite 6
  7. 7. BAND – Business Angel Network Germany Founded in 1998, support the BA market and build up a “New Culture of Entrepreneurship” Role, Function & Activities  Umbrella organization of the informal venture capital market in Germany  Representation of business angel networks towards public & public sector  PR, awareness campaigns (Business Angel Year 2010), trainings etc.  Quarterly Business Angel Panel Annual Matchmaking Event German Business Angel Day 43 Regional and Local Networks (network types)  Network as a Public Project (50%)  Network as a (Business) Association (30%)  Network as a private Club 06.10.2011 Seite 7
  8. 8. Example: Netzwerk Nordbayern Definition: Business Angel Networks are national or regional, local, commercial or industry sector organizations set up to promote means of introduction between young innovative SMEs and private investors with entrepreneurial experience (business angels). Role & Services for SMEs and Start-ups:  Service Provider: information, know-how, consulting, financing, networking, planning  BA Networks provide certain standards and best practices  Active cooperation of many partners in the region guarantees target- oriented and precise support  Essential function: provision of networking through opening important contact and communication channels 06.10.2011 Seite 8
  9. 9. Example: Netzwerk Nordbayern (Partner Network) Ministry of Economy Business Uni- Angels & versities VCs Chamber Companies of Comm- erce Network Northern Bavaria Innovation Business & Techno- Asso- logy ciations Centres Jurors Industry Business Clusters Plan Contest Public Sponsors Entities 06.10.2011 Seite 9
  10. 10. Model Project Cycle 2010 - Overview 06.10.2011 Seite 10
  11. 11. Model Project Cycle 2010 – Ideas & Selection Selection of 15 Ideas (out of 150+) “One Pager” Involvement of partner network Ideas from different industries  IT & SW Develop., E-business  Energy & Environmental Technology  Food  Media & Entertainment 06.10.2011 Seite 11
  12. 12. Model Project Cycle 2010 - Trainings & Coachings 6 Training & Coaching Sessions were held (5 + Legal) Based on the “Ready for Equity - Training for Business Angel and Entrepreneurs” scheme No. Trainings 1 Business Angels and Equity Market How to Prepare for Meetings with Investors (executive summary, team 2 building, enterprise value) 3 The Perfect Presentation 4 Negotiations 5 Coaching Sessions 06.10.2011 Seite 12
  13. 13. Model Project Cycle 2010 – Matchmaking Organization of Investment Conferences (“matchmaking”)  Local  Regional Matchmaking according to a defined presentation procedure (“pitching”) 17 investors present during the first investment conference alone  Results:  15 companies trained for matchmaking with investors  “quality deal flow” initiated  first negotiations between companies on concrete investments  SBAN established as a serious player in the field 06.10.2011 Seite 13
  14. 14. Current Issues General  Impact of the global financial crisis  Enterprise Investment Scheme (EIS)  (Organized) syndication  Growing recognition of BAs´ in SME development In Serbia (start-ups, SMEs, BAs)  About 45% of start-up companies don’t survive first two years of operations  Complex and expensive procedures and regulations in whole life cycle  Access to financing is one of the key issues  Taxation issues for investors  Capacity building for SBAN: institutional and financial support 06.10.2011 Seite 14
  15. 15. Thank you for your attentionContactGIZ / ACCESSProgram LeaderTobias StolzMakenzijeva 24/511 000 Belgrade, SerbiaTel.: +381 11 240 03 71Tobias.Stolz@giz.dewww.giz.de 06.10.2011 Seite 15

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