Angels for Growth, lecture of 30th of November 2015 at Ca' Foscari in cooperation with Venice Design Week and department of Innovation Management

1. Università Ca’ Foscari
November, 30th 2015
Business Angels
&
Angel Investing

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Angel Investing …
• The match between:
• Business Angels (BAs);
individuals who contribute their
time, knowledge, contacts and/or
money to growth businesses in
exchange for equity or
(convertible) debt to be repaid.
• Entrepreneur/ ”start-upper” who
needs financing to grow his/her
business.

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Angels’ qualities …
A BA wants to be present, active and wants to
help / facilitate
the development
of the day by day
activity
... But does not
replace the
entrepreneur
Business Angels…
Feeling with the
entrepreneur and
knowledge of technology
are essential to
make an
Investment
A BA is
part of a network
where information
are constantly shared.
It 'an amplifier of successes ...
... and any
weaknesses!

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What are Angels looking for?
• An outstanding Management
team
• An exciting idea with a sound
business model
• The possibility to help filling
critical gaps
• High returns
• Exit
• Entrepreneurs and co-investors they
do not trust
• Entrepreneurs that do not finance
their own business and/or did not get
financing from family and friends
• Absence of at least one full time
founder
• Managementthat asks for too much
all together and/or is not specific
about the use of the funds
• Statements like:
• “we do not have competitors”
• “the market is so big that there is space for
everybody”
YES NO

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10 tips to attract the interest of BusinessAngels
1. Recognize the difference between Venture Capital and Business Angel
2. You must create a business plan that puts particular emphasis on your
sustainable advantage
3. "a good idea" is often not enough to raise capital from private investors:
you should work to provide concrete proof that the idea is economically
attractive (“idea” vs. “business idea”)
4. You must acceptthe fact that if you want to raise capital this still requires
an expenditure
5. You should contactBusiness Angelas consistentas possible with your
idea
6. Try to recognize what skills need your start-up to success
7. Raise capital is a very long process
8. Recognize that Business Angels are "value-added”investors
9. You must be eye-catching and show all your character
10. Invest your money in your idea

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Who we are
Italian Angels for Growth (IAG), the largest Angel Group in Italy, was
founded in 2007 as a non-profit association, by nine Founding Members.
Nowadays IAG consists of about 120 members.

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IAG members
Our organization is promoted and managed exclusively by individual
investors and we operate in order to offer our members the best
opportunities to invest in. The Organization is, therefore, totally apolitical
and independent from specific sources of deal flow, public or private.

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How we operate: investment process
Pre
Screening
Screening
groups
Screening
committee
Pitch to all
IAG
members
Due
diligence
Investment
About 400
business plans
analyzed yearly
3 pitch
presented in
5 meetings
each year
“Champion”
selection (*)
(*) 5% Carried Interest
reserved to the champion
in case of exit

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Our investment focus
We invest in Italy and abroad where we
work with partners such as other angel
groups or funds
Target sectors
we invest in any sector where we
have at least one expert member
Level of innovation
strong proprietary product or
process innovation, both in new
and traditional sectors
Investment stage
early stage financing, including
seed but above all start-up
financing
Investment amount
from €300,000 to €800,000
Target companies
start-ups and young companies
(up to 2 mil € in revenues) with
high growth potential

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From 22.02.08to 01.04.15
*Esclude la presentazione di Dicembre 2007e aprile
2015
PassPack, Biogenera, Quotient, Senseor, S5 Tech,
Trumedia, Spreaker, Nomesia, Ohikia, On-Sun, WIN,
Stereomood, Agroils, Sedidicodici, Margherita, Eugea,
Proxtome, Angiodroid, Musement, Cellply , Lovli,
Tok.tv, GiPS Tech, Biobeats, Wineverse, Qurami,
Drexcode, Inventia + 6 invest. Individuali.
BP received
Screening
groups
Rejectedby screening
groups
Deal closed
2500
533 (21%)
657 (26%)
107 (4.3%)*
67 (2.7%)*
34 (1.3%)
3
Deal Funnel
Soft commitment
Presentedto members
In due-diligence &
negotiation

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Portfolio IAG by industry: amount invested
Medical/Diagnostics;
€ 2.200.000
Internet; € 1.282.500
Cleantech;
€ 1.420.000
ICT / IT / HiTech;
€ 1.997.500
Electronics;
€ 1.344.000
BioTech / Life science;
€ 2.090.000
Media / Entertainment;
€ 659.000
Telecom / Mobile;
€ 185.000
Other sectors;
€ 461.000

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3
Portfolio IAG by Geography
Piemonte
Lombardia
Toscana
Lazio
Emilia Romagna
Friuli V.G.
Spreaker**
Eugea
Biogenera
Angiodroid
Cellply
Margherita
Nomesia
S5Tech
Ohikia
Musement
Lovli
Drexcode
SediciDodici
Stereomood
Passpack*
Qurami
Agroils
WIN
*Biobeats
UK/Spagna On Sun Systems
Isreale/USA Trumedia
Francia Senseor
UK Quotient
*Italia/USA Passpack, Biobeats
**IT/USA/DE Spreaker
***USA/Italia ProxToMe
USA Tok.Tv, Biobeats
28 Companies
Outside Italy
5
3
6
Calabria 1
GiPS Tech
ProxToMe***
Wineverse
2
1
Update – April 2015

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A total of 45 investiments, 28 first rounds, 11 follow-on rounds and 6
individual investiments.
Our results
Total investments amout to more than € 13M (€24M including co-
investors).
Benchmarking trips: 8 (USA x2, Israel, China, UK, Sweden, Slovenia, India,
Germany)
Winner of the 2010 EBAN award for Best Investment in a Social Enterprise
(Biogenera)
Shortlisted for the 2010 EBAN award for Business Angel Group of the Year
Winner of the 2011 EBAN award for Best Angel of the Year (Francesco Marini
Clarelli)

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IAG members’ geographical distribution
117 Members
Principato di Monaco 1
Lombardy 58
North - West 8
Emila Romagna 10
North – Central 7
North-East 20
Como 1
Cremona 1
Bergamo 2
Milano 50
Varese 1
Monza 3
Roma 12
Firenze 1
Pisa 1
Prato1
Siena 1
Torino 4
Cuneo 1
Genova 3
Udine 7
Pordenone 4
Trieste 1
Belluno 1
Verona 5
Padova 2
Terni 1
Ancona 1
Perugia 1
Bologna 6
Modena 2
Piacenza 1
Parma 1
Outside Italy
Lazio 12
Sicily 1
Palermo 1

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14% Consultant
19% Finance
24% Entrepreneur
37% Manager
6% Other
IAG members’background

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Portfolio

18. www.italianangels.net