EBAN The European Association of Business Angel Networks Claire Munck General Manager European Business Angel Network 2007 INSME General Assembly «Reinvigorating our Global Partnership for Innovation» 13th July 2007, Rome

About Business Angels Business Angel: Private individual investing own wealth in early stage businesses AND own expertise and network of contacts Investment – euro Equity investors Willing to share managerial skills, specialist knowledge and networks No sector preference Often prefer to invest in their region of residence – local investors Seeking profit, but also fun and adventure Usually total investments below 25% of wealth Can become involved in the business (“active Angel”) or not (“passive Angel”). >Success stories: Dell, Amazon.com, Macintosh, Body Shop …

Angels and Other Finance Sources Capital Needs Time Seed Start-up Early Growth Sustained Growth High Risk Low Risk Friends, Family & Founders Business Angels Formal Venture Capital IPO 0 Angels help fill the ‘Equity Gap’

About Angel Networks EntrepreneurBusiness Angel Contact of BAN Business plan evaluation and validation Drafting of business plan summary Investment readiness programme Preparation of a presentation Identification Training Identification of investment priorities BA added to database Participation in investment forum/club Confronting offer and demand Circulation of Business plan MATCHING Leverage funding, co- funding, bank loans

Benchmarking angel activity USEurope Estimates by the Centre for Venture Research in 2006: angels Invested $25,6 billion in 51,000 companies European estimate 2006: / angels investors 2-3 billion€ invested EBAN Statistics for active angels in 97 networks deals done, 127 m€ invesed Only record activity in responding networks: only a very small portion of the activity No fiscal incentives at federal level YET – 20 states have tax credits worth 5.8 billion$ Government stepping up to attract new angels into the market as VCs and angel syndicates are moving further along the financial value chain Fiscal incentives a growing phenomenon, UK as benchmark Compensation for the lack of entrepreneurial spirit?

About EBAN Established by EURADA with collaboration of European Commission, 1999 Organisation’s mission statement: –To enhance the representativeness of the industry and increase the visibility of the added value brought by BA and BAN in the equity market Organisation’s members include: –National Federations of Angel Networks –BANs with Local / Regional / National coverage –Other organisations inc. non-European Angel Networks 61 members, 21 countries

EBAN objectives A non profit Association, EBAN pursues the three main objectives: Lobbying /Dialogue with policy makers– Policy Recommendations E xchange experience & encourage best practice Promote & create positive environment for Business Angels Support the development of business angel networks across Europe

EBAN Services Regular information material:  A monthly EBAN Flash – Member only  A bi-annual EBAN Info Publications:  White Paper, Statistics, Summary Brief for Policy Makers, BAN add-on services,… Organisation of high level events:  1 Annual awareness Congress, 1 annual Technical event and ad hoc meetings on specific topics “As an independent and non for profit body, EBAN is free to pursue the best interest of its members with the sole objective of advancing the recognition of the BA and BAN ”

Participation in EU projects AFIBIO Project:  “Access to FInance in the BIOtech sector”  EASY Project:  Early Stage Investors Actions for Growth in innovating Business  Ready for Equity Project:  Development and testing of training curriculums 

Some achievements since Annual Congresses 20 Seminars Investment Readiness Co- investment mechanism with EIF 6 Winter Universities Number of members tripled in the last three years! Promotion of the concept of BA and BAN Next EBAN Winter University 19/20 November 2007 Geneva Day 1: organised in collaboration with WIPO/UNECE/UNIDO/ Meta Group Next Annual Congress Early April 2008 Arnhem, The Netherlands

 Fiscal Incentives  Capacity building  Syndication  Co-Investment Funds  Cross Border Investment Current Work

EBAN Organisation President and Vice President: Anthony Clarke, UK Claude Rameau, FR Executive Committee: Claude Rameau, FR Christophe Guisset, BE Brigitte Baumann, MA Paolo Anselmo, IT Christian Saublens, EURADA Board of Directors: 19 members EBAN Full Members (48) Secretariat: General Manager Claire Munck Office Manager Alberica Marzotto Caotorta European Commission DG Enterprises and Industry EBAN Associated Members (13) EBAN Sponsors EBAN Partners

Potential collaboration with INSME Collaboration on the occasion of events >Promotion and diffusion of information >Expert exchange on relevant topics Diffusion of information through newsletters and magazines Increasing links of EBAN outside Europe Support the development of a BA and BAN culture in lesser developed markets Future collaboration in projects

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