or Informal Investors by Mr Ties van der Laan Ties Corporate Finance 10, rue des Alouettes, L-1121 Luxembourg-Cents Luxembourg m , t/f e i Business Angels

4Characteristics 4Who are they? 4What do they seek? 4How do they operate? Business angels

BA’s: characteristics 4Successful business(wo)men 4“Have been there, done that” 4Invest their own money 4Funds: up to € 1m, few larger 4Deals: from € k, typically € 75k 4Aged between years, few younger 4Driven by “giving something back” 4Other agendas - fun, involvement 4Profit less significant

4Executive angel  Active entrepreneurs, executives or consultants  Investments between € 50k - € 100k  Extra turnover, networking, hobby 4Job seeking angel  Redundant executives  Work in the € 30k - € 70k area  Busy, active 4Retired angel  Workaholics  Smaller amounts (€ 15k - € 50k)  Busy, active Who are the BAs?

4Small companies  Mostly active in markets they know  Growth in growing, large, empty niche markets  In 7-10 years potential turnover >100m  Also invest in seed phase  Nearby 4Return  Profit through tradesale or IPO  Dividend, interest and fees 4Likeable persons  In business (entrepreneur) and private (talk)  Mutual trust What do BAs seek?

4Intake  Via friends, family or business (angel) networks  Low due diligence 4The deal  Straightforward structure  Veto rights, minority protection, anti-dilution  Time frame from several weeks to one month 4After the deal  Close involvement: 1-3 days/week  Hands on unless going badly  Business devils How do BAs operate?

From start to finish (I) The more steps you complete the easier it becomes to raise finance: 1. Finalise your product (grants) 2. Find entrepreneur (yourself?) 3. Found company (own money, house, FFF) 4. Find business partners (sponsors) 5. Find customers and sell (auto-finance) 6. (Accelerated) growth (raise finance) continued on next slide

From start to finish (II) continued from the previous slide 7. Raising equity finance:  1. Prepare business plan/presentation/pitch üWith help of dedicated professionals?  2. Research financial world üBusiness Angel Networks (BANs, üEVCA/local VCAs ( üNetworking  3. Approach chosen potential investors With help of dedicated professionals? 8. Later stage: MBO/MBI/Turnaround 9. Raising equity finance: see Sell: tradesale or IPO

Ties Corporate Finance Business coach in raising finance for the start-up or expansion of businesses  To create a winning business plan  To approach investors professionally  To negotiate with investors successfully

Ties Corporate Finance Ties van der Laan 10, rue des Alouettes L-1121 Luxembourg-Cents Mobile: (+352) Fax: (+352) Internet: Contact details