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Business Angels in Europe today

Aleksandar Cabrilo EBAN

• Not for profit organization based in

Brussels

• Created in 1999 by Eurada with the

support of European Commission

• Members in 35 countries

• +100 members and growing!

Beyond Europe: Australia Brazil Canada Curacao Malaysia New Zealand USA

About EBAN

EBAN Members

Business Angel Networks (BANs) Federations of Business Angel Networks Early Stage Venture Capital Funds Business Angels Business accelerators E-funding platforms (non-investors)

Associate Members (Other entities involved in promoting the

early stage investment market in Europe)

EBAN Activities Professio-nalisation

• Training

• Certification

• Professional

standards

Research

• Publications

• Benchmarking

• Best practices

Lobbying

• National &

European

lobbying

• Position

Papers

Capacity Building

• Increase angel

community

• International

events

Cross-Border Investment

• Networking

• Co-Investment

& Syndication

• International

agreements

EBAN Activities EVENTS

• Annual EBAN Congress (Dublin, 19-20 May 2014)

• Annual Winter University (Helsinki, Fall 2014)

• Training Sessions (events & online)

• 1st European Business Angels Week (18-24 November 2013)

EBAN Annual Awards

Business Angel of the Year, Business Angel Network of the Year, Early

Stage Fund of the Year and other awards.

Equity gap

Capital Needs

Time

Seed Start-up Early Growth

Higher Risk

Friends, Family & Founders

Business Angels

Venture Capital Funds

IPO

0

Angels help fill the ‘Equity Gap’

Early stage and seed

venture funds

Number of BANs* in Europe

• Slide content

*BAN – Business Angel Network/Group

Amount Invested by BAs members of BANs (M€)… estimated to total BANs

508M€

427M€

Amount invested: Size of Visible/ Invisible Market

4.745 M€ 5086 M€

427M€

508 M€

2011 2012

Visible Market 9% 10%

Business Angels vs VCs investments in early stages

Busi

ness

Ang

els

5,1 b€

VCs

1,9 b€

Source: EBAN, EVCA 2012

Number of BAs* in BANs

241.444 261.054

2011 2012

“formal” market 9% 10%

21.730 26.105

*BAs who made at least 1 investment in the past 3 years.

Visible market by country M€

Visible market growth/ decline (amount invested)

838% 250% 175% 116%

Markets with over 10M€ of angel investment

Average investment amount by BANs (k€)

Average = 1,1M€

7100

Impact in the economy (year of investment, 2012)

Businesses

Funded

2.900

Jobs

Created

17.700

The role of ICT Finance Marketplace in promoting investment readiness for EU funded projects

- EBAN - Angel Capital Innovations, UK

- Paragon Ltd, Malta - APRE, Italy - Euro Consultants Ltd, Israel - GEONARDO Environmental Technologies Ltd, Hungary - SYNBEA, France - INVENT, France

- TESEO, Belgium - Europe Unlimited - Inovação.Net, Portugal

ICT entrepreneurs looking for external funding to commercialize their R&D and grow their ICT Business: access to coaching to become investment ready, as well as introductions to investors and cross border investment events. Angels or VC interested in investing in innovating ICT SMEs: offers an unprecedented source of deal flow in new investment ready ICT propositions from across Europe; opportunities to join a sustainable network of investors sharing opportunities in ICT.

GOALS

Member of Project coordinator

Initiative supported by DG Information Society and

Media Project Partner

Achieved Results

Over 2000 ICT SMEs and

intermediaries reached

Over 300 ICT SMEs participated in

investment readiness

workshops and individual training

Over 100 ICT SMEs interfaced with

investors

3 Projects received funding

Challenges

Only 5% of the SMEs were actually looking for funding 79% of Investors unfamiliar with the available financial supports provided by Research and Development Framework Programmes SMEs claimed: 1. Lack of information about sources of finance 2. Find only a few opportunities for networking Investors claimed: 1. Lack of market and customer validation 2. Lack of experienced management team to take the

business forward 3.Lack of skills

Member of Project coordinator

Initiative supported by DG Information Society and

Media Project Partner

Our Findings

From the sample of 138 companies from Belgium, Luxembourg, Portugal and Switzerland we learn that 13 are VC backed or were sold Intermediaries play a key role Good market offer for pitching opportunities Successful case studies across Europe

Project Recommendations

Awareness raising Investment readiness Streamlining the road to market and contact with investors Leverage private sector involvement in the market Building an entrepreneurial and financing ecosystem Public Procurement

Contact

Luis Galveias Director of Secretariat

[email protected]

www.eban.org

www.europeanangelweek.eu