1. Young European Entrepreneurs Seminar 2011 The importance of Business Angels for entrepreneurship Chiara de Caro, General Manager EBAN November 17 th 2011

2. 2 ABOUT EBAN Business angel networks Federations of networks Individual angels Associate members 120 member organisations – Representing 300 BANs – 27 countries Seed funds

3. 3 BUSINESS ANGELS An individual investor, investing directly his/her own money predominantly in seed or start-up companies with no family relationships, with a medium to long term set time-frame and financially independent Making his/her own (final) investment decisions Ready to provide, on top of his/her individual investment, follow-up strategic support to entrepreneurs from investment to exit. Respecting a code of ethics including rules for confidentiality and fairness of treatment (vis-à-vis entrepreneurs and other BAs), and compliance to anti-laundering. >Investment average 25 to 250k

4. 4 EXAMPLES OF BA FUNDED COMPANIES Michelson Diagnostics

5. 5 WHAT BUSINESS ANGELS LOOK FOR? Current & comprehensive Business Plan Strong & committed Management Team Environment and market High growth / scalable / strong business forecast (5m/3yrs) Realistic pre-money valuation Exit strategy BUT Entrepreneurs qualities are most important In Europe, Business Angels invest 4 Billion Euros per year in 20.000 companies (including several financial rounds)

6. 6 BUSINESS ANGEL NETWORKS Membership: Business Angel investors Fees: Annual membership fee and sometimes % success fee Seeks & filters applications from entrepreneurs Allows selected entrepreneurs to pitch to investors May also: provide training (to entrepreneurs and Angels), opportunities to syndicate Private or semi-public body whose aim is to match entrepreneurs looking for equity with business angels

7. 7 ADDED VALUE Angel Networks can increase supply & demand for Angel Investment Investment Readiness programmes – get entrepreneurs ready for investment –e.g. Business Planning advice, Presentation Training etc. Investor Readiness programmes – educate investors in the basics of Angel investment –e.g. Legal Issues advice, meet with existing Angels, learn about tax break schemes

8. 8 WHAT CAN POLICY MAKERS DO? SUPPLY Bringing more investors DEMAND Quality deal flow MARKET Impact and sustainability Fiscal incentivesInvestment readiness (incl. sector specific) Support sustainable and professional BANs Co-investment fundsTeach entrepreneurship and access to finance very early in schools Data collection Investor readiness training sessions Have incubators and other facilitators to educate and prepare entrepreneurs Local BA/VC forums Media campaignsLight regulation for early stage investment market

9. 9 «EBAN Annual Congress» Hosted by NBAA Russia Moscow, 23-24 April 2012 www.ebancongress2012.org INTERESTED IN LEARNING MORE?

10. 10 CONTACT DETAILS EBAN Secretariat Rue Vautier 54 1050 Bruxelles +32 2 626 20 63 info@eban.org www.eban.org