Business Angels in Europe today. Aleksandar Cabrilo EBAN

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1 Business Angels in Europe today Aleksandar Cabrilo EBAN

2 About EBAN Not for profit organization based in Brussels Created in 1999 by Eurada with the support of European Commission Members in 35 countries +100 members and growing! Beyond Europe: Australia Brazil Canada Curacao Malaysia New Zealand USA

3 EBAN Members Business Angel Networks (BANs) Federations of Business Angel Networks Early Stage Venture Capital Funds Business Angels Business accelerators E-funding platforms (non-investors) Associate Members (Other entities involved in promoting the early stage investment market in Europe)

4 EBAN Activities Professionalisation Research Lobbying Capacity Building Cross-Border Investment Training Publications National & Increase angel Networking Certification Benchmarking European community Co-Investment Professional Best practices lobbying International & Syndication standards Position events International Papers agreements

5 EBAN Activities EVENTS Annual EBAN Congress (Dublin, May 2014) Annual Winter University (Helsinki, Fall 2014) Training Sessions (events & online) 1 st European Business Angels Week (18-24 November 2013) EBAN Annual Awards Business Angel of the Year, Business Angel Network of the Year, Early Stage Fund of the Year and other awards.

6 Equity gap Capital Needs IPO 0 Higher Risk Friends, Family & Founders Business Angels Early stage and seed venture funds Venture Capital Funds Seed Start-up Early Growth Angels help fill the Equity Gap Time

7 Number of BANs* in Europe Slide content *BAN Business Angel Network/Group

8 Amount Invested by BAs members of BANs (M ) estimated to total BANs 427M 508M

9 Amount invested: Size of Visible/ Invisible Market M 508 M M 5086 M Visible Market 9% 10%

10 Business Angels vs VCs investments in early stages 5,1 b Business Angels 1,9 b VCs Source: EBAN, EVCA 2012

11 Number of BAs* in BANs formal market 9% 10% *BAs who made at least 1 investment in the past 3 years.

12 M Visible market by country

13 Visible market growth/ decline (amount invested) 838% 250% 175% 116% Markets with over 10M of angel investment

14 Average investment amount by BANs (k ) 7100 Average = 1,1M

15 Impact in the economy (year of investment, 2012) Businesses Funded Jobs Created

16 The role of ICT Finance Marketplace in promoting investment readiness for EU funded projects

17 - EBAN - Angel Capital Innovations, UK - Paragon Ltd, Malta - APRE, Italy - Euro Consultants Ltd, Israel - GEONARDO Environmental Technologies Ltd, Hungary - SYNBEA, France - INVENT, France - TESEO, Belgium - Europe Unlimited - Inovação.Net, Portugal

18 ICT entrepreneurs looking for external funding to commercialize their R&D and grow their ICT Business: access to coaching to become investment ready, as well as introductions to investors and cross border investment events. Angels or VC interested in investing in innovating ICT SMEs: offers an unprecedented source of deal flow in new investment ready ICT propositions from across Europe; opportunities to join a sustainable network of investors sharing opportunities in ICT.

19 GOALS

20 Achieved Results Over 2000 ICT SMEs and intermediaries reached Over 300 ICT SMEs participated in investment readiness workshops and individual training Over 100 ICT SMEs interfaced with investors 3 Projects received funding Member of Project coordinator Project Partner Initiative supported by DG Information Society and Media

21 Challenges Only 5% of the SMEs were actually looking for funding 79% of Investors unfamiliar with the available financial supports provided by Research and Development Framework Programmes SMEs claimed: 1. Lack of information about sources of finance 2. Find only a few opportunities for networking Investors claimed: 1. Lack of market and customer validation 2. Lack of experienced management team to take the business forward 3.Lack of skills

22 Our Findings From the sample of 138 companies from Belgium, Luxembourg, Portugal and Switzerland we learn that 13 are VC backed or were sold Intermediaries play a key role Good market offer for pitching opportunities Successful case studies across Europe Member of Project coordinator Project Partner Initiative supported by DG Information Society and Media

23 Project Recommendations Awareness raising Investment readiness Streamlining the road to market and contact with investors Leverage private sector involvement in the market Building an entrepreneurial and financing ecosystem Public Procurement

24 Contact Luis Galveias Director of Secretariat

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