Incubating Africa BAN – African Network for Business Angels, Seed Funds and Early Stage Market Players Baybars Altuntas – EBAN Vice-President

OBJECTIVE Incubate the African Network for Business Angels, Seed Funds and Early Stage Market Players TERMS Inspire, Facilitate and Enable national, regional and international cross-border early stage investment eco- system between Africa and Europe Incubation period of up to 1 year with the ambition of spinning out a partner organisation Provide a complete service offering to meet investors’ and network managers’ operating needs

The Context Africa is a hot-bed for innovation and a source of world changing solutions To Realize the potential of the continent’s most promising entrepreneurs resources need to be unlocked i.e. the required network, knowledge and capital The VC4Africa Community is a global peer-to-peer network where entrepreneurs and investors come together to build great African Success stories

VC4Africa’s survey Combined, 92 ventures that participated in VC4Africa’s survey were successful in securing nearly USD $12,000,000 in funding By the second operating year, 64% of the ventures had succeeded in generating revenue 75% of the ventures that join VC4Africa are pre-revenue startups. 25% join as ventures seeking growth and expansion capital 83% of the ventures registered on VC4Africa have an urban focus vs. 17% that have a rural focus

VC4Africa’s survey On average, startups registered with VC4Africa secured USD $80,000 in funding vs. expansion companies that secured USD $237,000 Ventures with an urban focus secured less than ventures with a rural focus. Where the former secured USD $119,000 the latter secured nearly USD $166,000 on average There is about an 75/25 split for Commercial vs. Grant funding the companies have been able to secure to date

VC4Africa’s survey Ventures are improving their revenue performance over time. For example 57.1% of the ventures registered in 2010 show less than USD $5K in revenue. 43.8% of those same ventures expect to generate more than USD $50K in 2013 It is clear the companies are growing in size and adding full time positions (FTE’s) year on year. By 2012 the companies registered on VC4Africa employed a combined 449 people. By 2013 the same companies expected to increase their combined staff to 2,263 FTEs

VC4Africa’s survey 2011 looked like a down year for most companies and there might be a correlation to broader economic factors i.e. The global recession It might be true that companies secure a higher % of grant funding at the earlier stages of their development, but the evidence is not conclusive It will be interesting to see what trends emerge given larger data sets showing how company’s mature over longer periods of time

VC4Africa’s survey The mean and average value of invested capital per venture differs considerably. This implies a significant impact due to a few outliers. Therefore these outcomes have to be treated carefully The top five investment sectors consists of: Technology & ICT, Internet & Mobile, Energy, Agriculture and Retail In the top five investment sectors the average investment per venture ranges between 100K and 250K, agriculture and energy being more capital intensive

EBAN/ABAN Incubation Areas Business Angels Club Development Training ABAN angel investment immersion in Europe Resources

Business Angels Club Development Business Angels Club development guide Co-Development of the EBAN/ABAN joint guide for the development of business angels club in the region. A practical guide to set up, grow and increase performance of networks based in success stories adapted to the local and regional situation and momentum. Standard documents Preparation of a set of documents to facilitate the creation and management of angel clubs (eg. articles of association, code of conduct…), and to ease the investment process from both the club, the investor and the entrepreneur perspective (eg. shareholders’ agreement, IP protection…). Development in partnership with local lawyer experts to ensure validity in different African countries.

Training Development of business angels and business angel clubs as per the experience of Europe’s most active networks Investor-friendly public policies (eg. tax breaks, co-investment funds to be implemented) 101 Course on Angel and Early Stage Investment to attract and train early stage investors Exclusive 360º interview with leading business angels from around Europe, the Middle East, Africa and the world 2-day programmes sparced in time comprising interaction with a larger audience of angel investors and possible visit to clubs in their local environment Trainings delivered by EBAN Members and EBAN Secretariat.

One-week ABAN angel investment immersion in Europe, November 12-19, 2014 Study Visit of ABAN members to selected EBAN members and the Winter University Participation in EBAN Winter University ( November, Helsinki) Visit to Europe’s leading early stage investment communities and face-to-face meetings with angel investors, development agencies, startup accelerators, public/ government representatives in addition to EBAN Member Cross Border events. November 12-19, 2014 Helsinki, Finland Barcelona, Spain Dublin, Ireland Nice, France …

Resources EBAN/ABAN Website/ Members’ exclusive area Access publications, research papers and presentations delivered at EBAN events in the past years as well as all current documentation Webinars Participation in EBAN’s monthly webinars on angel investment related topics. Possibility to host exclusive webinars to ABAN members with selected speakers EBAN/ABAN Flash Subscription of EBAN flash with ABAN highlights LinkedIn Participation in EBAN/ABAN LinkedIn Group