1. Ready for takeoff – two wings for sustainable success Tobias Wehr Project Manager Business Angels Netzwerk Deutschland e.V. (BAND)

2. © 2010 by Business Angels Netzwerk Deutschland e.V. content  About BAND  Business Angels  Advantages for start ups  Business Angels vs. Business Devils  Business Angels networks  Process of a Business Angels involvement  Success stories

3. © 2010 by Business Angels Netzwerk Deutschland e.V. About BAND  Founded in 1998, support the Business Angel Market in Germany and build up a “New Culture of Entrepreneurship”  umbrella organisation of the informal venture capital market in Germany  representation of business angel networks towards politics and the public  Encourage cooperation and syndication among the market players  BAND is under the Patronage of the Federal Ministry of Economy

4. © 2010 by Business Angels Netzwerk Deutschland e.V. About BAND  Public relations  Quarterly online magazine (BANDquartal)  Publication of topical news (BrANDneues)  Stimulating research, initializing and fostering know-how transfer  supporting the process of merging capital seeking companies and business angels (BAND One Pager)  organisation of training seminars (BANDacademy)  Investor readiness  Investment readiness  Business Angel Panel  Quarterly market trend report  organisation of matching events and conventions like the annual "German Business Angels Day“  Business Angel awareness campaigns (“Business Angels Year 2010”)

5. © 2010 by Business Angels Netzwerk Deutschland e.V. Business Angels  Private investors (entrepreneurs or managers)  Investment: between 50.000 € and 500.000 €, early stage (seed or start-up)  Company shares – minority shareholding  Coach for founders

6. Capital Know-how and  Economically independent private investor  Investment between 50.000 and 500.000 Euro  Interested in return on invest  knowledge  experience  network and contacts  fun Business Angels have two wings © 2010 by Business Angels Netzwerk Deutschland e.V.

7. importance of Business Angels  start-ups need investments for the development and market launch of new products or business concepts  Difficult to estimate the probability of success  Lack of experience and comparative figures  Point for revenues is not foreseeable  Difficult to convince investors (e.g. banks) due to lack of securities and high risks Business Angels!!! Equity Gap

8. advantages for start-ups  No cost of capital  No personal bond, no securities  Expert consulting © 2010 by Business Angels Netzwerk Deutschland e.V.

9. the ideal start-up for a BA  High potential enterprise value growth  Innovative business concept  USP  Seed- or Start-up stage  Strong, competent founderteam © 2010 by Business Angels Netzwerk Deutschland e.V.

10. what can founders expect from a BA?  Contribution of experience, know-how and capital  Support in the foundation phase e.g. review and improvement of business plan and financial plan  Support in the start-up / building phase e.g. structuring of monthly reports, project outline and controlling © 2010 by Business Angels Netzwerk Deutschland e.V.

11. what must founders not expect from a BA?  All-knowing genius  Active part of the management  Employee in the operative daily business © 2010 by Business Angels Netzwerk Deutschland e.V.

12. Business Angels vs. Business Devils Business Angels  Often organised in networks  Interested in supporting founders  coach © 2010 by Business Angels Netzwerk Deutschland e.V. Business Devils  Seek costomer potential for own business  Seek an employment or even CEO position in the company  Demand securities for the investment  Demand majority stake

13. Where to find Business Angels? © 2010 by Business Angels Netzwerk Deutschland e.V.  Business Angels are often organised in networks  Business Angels networks provide platforms for companies seeking capital and Business Angels initiate involvements  Core competence: Screening and matching

14. added value of networks For Business Angels  Time and cost saving in the screening process  Exchange of experience with like-minded persons  Qualification  syndication © 2010 by Business Angels Netzwerk Deutschland e.V. For companies  Access to Business Angels  Warranty for reliability  Critical review of the business concept and founders competences

15. process of a BA involvement  Companies seeking capital fill out the BAND One Pager  review and preselection by BAND  Forwarding to networks that are member in BAND  Founders reach a great pool of potential investors  Screening and matching in networks  Matching events © 2010 by Business Angels Netzwerk Deutschland e.V.

16. BAND One Pager © 2010 by Business Angels Netzwerk Deutschland e.V.

17. success stories © 2010 by Business Angels Netzwerk Deutschland e.V.  Wohnen im Alter Internet GmbH  Online platform for sheltered accomodation for elderly people  www.wohnen-im-alter.de  SchulLV  Online platform which provides tutoring for school children  www.schullv.net

18. further information Business Angels Netzwerk Deutschland e.V. (BAND) Tobias Wehr, Project Manager Semperstraße 51 45138 Essen, Germany Telefon:+49 (0)201 - 89 41 5-14 Telefax: +49 (0)201 - 89 41 5-10 E-Mail: wehr@business-angels.dewehr@business-angels.de Web: www.business-angels.dewww.business-angels.de