IBAN Italian Business Angels Networks Association

Transcription

1 1 IBAN Italian Business Angels Networks Association The Italian experience concerning angels investors activities Paolo ANSELMO

2 Foreword 2 It s more and more difficult for start-ups to access finance All money is not the same It s not only a question of access to money but also a question of life cycle of a company and about the entrepreneur s capability to contact investors. there is an asymmetry of information between entrepreneurs and investors. investment readiness is needed There s still a lot to be done in both in Italy both in all EU Member States

3 Entrepreneurs & investors: the traditional finance gap 3 FINANCE: current European Union situation (15 27 MS) versus Italy Business Finance is dominated by major Banks Finance provided to entrepreneurs is predominantly debt finance EU/IT banking for small/new businesses is treated as retail There are gaps in the package of support (growing or new firms) SME s market segment seen as high risk Debt finance usually requires some form of security Banks look for collateral (intangible assets are not security)

4 Entrepreneurs & investors: the equity gap 4 Cultural reluctance to equity finance both from demand & supply side Formal Venture Capital investing in higher and higher amounts gap in the seed and start-up phases Business angel financing can be a possible solution to close the gap

5 Definitions 5 Informal risk capital (business angel): private individuals investing part of their personal assets in businesses and contributing their managerial skills and experience Business Angels Networks (BANs): regional platforms that match business angels with entrepreneurs/founders

6 Size of the Italian market 6

7 The potential of Business angels in Italy 7 HNWI world: ( ) HNWI USA: ( ) HNWI Europe: ( ) HNWI Italy: ( ) High Net Worth Individual more than $ (building excluded) * Source World Wealth Report 2005 Capgemini & Merrill Lynch (2004 versus 2003) IBAN estimates that more than informal investors could be mobilised in Italy as BA

8 IBAN Italian Business Angels Network association 8 1. Established in 1999 with the support of the European Commission 2. Non-profit association 100 members represented 3. Lobbying at regional/national level 4. Encouraging the exchange of experience among business angels networks and encouraging best practice 5. Promoting recognition of BANs 6. Contributing to working out and carrying out local, regional and national programs of assistance to the creation and development of a positive environment for business angels activities 7. Raising Awareness of BA and BANs 8. Collecting data from the BA market place regularly 9. Creating a BA panel to discuss topical issues affecting the angel community 10. Paying attention to the effects of taxation on BA activity 11. Promoting high ethical standards of BANs code of conduct

9 BAN: the Italian interpretation 9 BAN = Business Angels Network A marriage agency where Investors can meet Projects & Companies A channel of communication towards the regional Stakeholders = voice of the angels

10 BAN: the network 10 Venture Capital, Business Angels and Banks Network of Intermediaries and Universities Universities, Research Centres and technology companies BAN Professional Services and Business Support Organisations Thank you for listening!

11 The Italian players: 1 national network 11 local BANs 11 IBAN for the whole Italian territory BAN Brescia BAN Club Milano Centro BAN Liguria BAN Friuli V.G. BAN Bologna BAN Toscana Sud BAN Umbria BAN Puglia BAN Sardegna BAN Lazio BAN Campania

12 BAN - Tools of BAN s For the entrepreneur Identification of potential investors Preparing the contact with BA Financial advice Visibility Assistance for the matching Information on additional fund raising Investment readiness For the Business angel Training programs (BA academies) Organisation of investments forums/clubs Information bulletins, magazines, newsletters Database of potential good projects Personal introductions Access to regional deals flow Possibility of co-financing with other BA Links with other networks 12

13 IBAN overview of 2005 results business investment proposals evaluated 35 deals performed 8,05 million Euro invested Investment s average = Euro

14 IBAN the start up history 14 n 2 preliminary feasibility study The objectives were to investigate about: The legal and fiscal framework rules in Italy The cultural and administrative constraints in Italy The regional entrepreneurial environment: economics figures and peculiarities The creation of a national Business Angels Network The creation of a pool of regional Business Angels Network SVI Lombardia - Lombardia Centro Sviluppo - Valle d Aosta CESVIT - Toscana GEPAFIN - Umbria

15 IBAN actions undertaken 15 Logo and registered trademark web site (more than visitors per year) Mass-media promotion of the Business Angels concept (relevant number of press articles on national news paper and magazines) Seminaries and workshops organisation (7 national Congress) and participation in more than 100 events in all Italian regions ( people involved) Three IBAN s proposals to the Italian Parliament: the aim is to propose a new and easier regulation of the risk capital, in particular for the minority equity participation Diffusion of general and behaviours rules concerning informal investments Active cooperation with EBAN: awareness campaign in Italy and in EU (EBAN Congress in Milan, November 2003) Business Plan Guide in cooperation with PriceWaterhouseCooper Light up your idea Start-up award during SMAU exhibition Premio Nazionale Innovazione jury commitment

16 IBAN work in progress activities 16 EASY partnership (PRO INNO EUROPE program) Ready for Equity partnership (UE Leonardo program) To increase the number of business start ups and to ensure the development of financed business start ups To offer a matching service inside profit organisation (investors clubs) To work with financing institutions to make existing tools more innovative SME friendly To work with financing institutions to develop new ways of financing innovation To increase our role as governmental expert for innovation supports programmes: implementing financing scheme of start up aid program intended for business start ups

17 What can be done at State level to strengthen BA activities 17 IBAN proposals to the Italian government: Set up awareness campaigns support (i.e. business angels week) Ensuring public financing of BANs operations (i.e. France, Belgium) Integrate BAN activities in the regional entrepreneurship strategy Promote codes of conduct for BANs and Bas Set up of investment and co-investment capital funds Provide investment readiness schemes to entrepreneurs Improve the legal, administrative and fiscal environment to increase the flow of equity for early stage investment (i.e. capital gain or loss exemption from tax - prospectus and financial services provision)

18 18 Contact people Thank You for listening Paolo ANSELMO IBAN Italian Business Angels Networks