1. Business Angel Financing Opportunities, Expectations, Limits

2. Who are we? www.msmgroup.ch > MSM Pro > MSM Investorenvereinigung www.msmgroup.ch

3. MSM Gruppe / August 2004 Who is a „Business Angel“ ? No general definition Invests funds and more in new businesses: Knowledge and experience Network Time and effort Is usually not only financially motivated Not all are „rich“

4. MSM Gruppe / August 2004 Who is a „Business Angel“ ? Members of MSM Investorenvereinigung Entrepreneurs Managers Officials Retired Students

5. MSM Gruppe / August 2004 Private Equity Investments Business Angel - Few investments - Financial and personal engagement Portfolio Investor - Diversified - Financial engagement Number of Investments Chances / Risiks

6. MSM Gruppe / August 2004 Opportunities Invests in early stage (after founder and his FF) Adds additional value Example: Manager Creates trust and visibility Brings in further Angels Example: Asset Manager Is „in the same boat“ (unlike portfolio investor, VC, advisor or manager)

7. MSM Gruppe / August 2004 Expectations Know your BA ! Example: “OPM” Expect (only, but all) what they can deliver Example: Presence Be open for discussion and adaption Example: Coach

8. MSM Gruppe / August 2004 How to Find ? Close environment (“low hanging fruits”) Networks of Colleagues, Friends, Family Existing investors „Profiteers“: Suppliers, cooperation partners, clients

9. MSM Gruppe / August 2004 How to Find ? Search Internet for Institutions

10. MSM Gruppe / August 2004 How to Address ? Be prepared Know your Business Plan Reduce costs Think practical „bottom up“ e.g. how many hours work to get one client not % of market Reflect FAQ (do presentations at BA Clubs) Protocol and implement feedback Don‘t give up!

11. MSM Gruppe / August 2004 Beware of … False promises Impostors, crooks, money launderers, psychotics Hidden Agendas (competitors, hostile takeover) Upfront payments without direct consideration Losing time Don’t give up Exclusivity clauses Long, complicated contracts

12. MSM Gruppe / August 2004 Limits Never expect a future Ask and hope for… Additional Financing More time Personal Involvement Visibility and reference … but don‘t take it for granted !

13. MSM Gruppe / August 2004 Business Angels vs … Friends & Family VCs Crowd Investing Banks and other Institutionals Foundations, Awards Corporate Investors

14. MSM Gruppe / August 2004 Figures and Links

15. MSM Gruppe / August 2004 Figures and Links www.eban.org www.business-angels.de http://www.seca.ch/About-SECA/SECA-Chapters/Seed- Money-VC.aspxhttp://www.seca.ch/About-SECA/SECA-Chapters/Seed- Money-VC.aspx www.gust.com