1. Workshop on Support for Euro- Mediterranean industrial cooperation The role of Business Angels in Europe and in the Mediterranean Paolo Anselmo, EBAN Board Member December 12 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 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 Entrepreneur’s qualities are most important In Europe, Business Angels invest 4 Billion Euros per year in 20.000 companies (including several financial rounds)

5. 5 ANGELS AND OTHER SOURCES OF FINANCE Capital Needs Time SeedStart-upEarly GrowthSustained Growth Higher Risk Lower Risk Friends, Family & Founders Business Angels Venture Capital Funds IPO 0 Angels help fill the ‘Equity Gap’ Early stage and seed venture funds

6. 6 EXAMPLES OF BA FUNDED COMPANIES Michelson Diagnostics

7. 7 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”

8. 8 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

9. 9 EXAMPLES OF BA FUNDED COMPANIES BANs Market Trends  Increase in the number of Early-stage actors, contrary to the consolidation trend concerning the European VC Market;  Increase in the number of European BANs over the last 5 years; DATA REPORTED TO EBAN (2010) # Business angels8.356 Business plans submitted to BA 3.661 Deals closed945 Average Amount of Deal 60.400€ Total amount invested 128M€

10. 10 Angel Investments Data 2010 Angel Investments breakdown by geographic region

11. 11 Angel Investments Data 2010 Angel Investments breakdown by sectors of investment

12. 12 The Italian Angel Investing Market Which are the data in 2010 ? Source: IBAN, Survey 2010 Investment amount registered by IBAN33.3 M € Deals 229 Exit declared 31 Average amount for deal145.000 € Number of examinee projects 1.362 EARLY STAGE SECTOR: Seed38% Start up26% Early expansion25% Other operations 12%

13. 13 The Italian BA Profile BA's personal profile from a recent Survey Man, 49 years old, top manager or entrepreneur, strong academic background (master’s degree, post-lauream) Place of residence in the North of Italy (83%) Range of 150-200 km to focus its investments to stress BA commitment with entrepreneur Personal assets available around 1.000.000 € ~ IBAN Member He generally allocates nearly 10% of own assets for Angel Investing Average investment for deal is around 145.000 € Interesting in High Tech sectors Source: IBAN, Survey 2010

14. 14 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

15. 15 Why MedVentures ? Boosting Mediterranean high growth start-ups Boost European innovation and competitiveness –Booming markets in the South (mobile, urban services, agro-Food…) –Dynamic partners to build, test and develop competitive offshoring solutions Invest in tomorrow’s Google –A potential of 500+ high growth start-ups in Southern Mediterranean –The MedVentures 2010 competition highlighted 100+ international business, worth €100 million Develop Cross-border businesses –High skilled Diaspora in US, Europe and Gulf Countries –Can be entrepreneurs, business development relays, mentors, coachs Improve access to Finance –Consolidate an international deal flow –Develop low cost due diligence and co-investments 15 © ANIMA 2011

16. 16 50 partners, 15 countries 16 © ANIMA 2011 16 ² Europe European Commission, EBAN, IBAN, EIB, CDC, OSEO, EBN, AFAEMME, CCIMP, EPA Euroméditerranée, European Business and innovation Centre network (EBN), OSEO, Marseille Innovation, Parrainer la croissance, Provence Promotion, Ville de Marseille Europe European Commission, EBAN, IBAN, EIB, CDC, OSEO, EBN, AFAEMME, CCIMP, EPA Euroméditerranée, European Business and innovation Centre network (EBN), OSEO, Marseille Innovation, Parrainer la croissance, Provence Promotion, Ville de Marseille Morocco Casa Technopark, FCE Banques Populaires, Dayam, RMIE, AFEM Morocco Casa Technopark, FCE Banques Populaires, Dayam, RMIE, AFEM Algeria Algerian Start up Initiative, Alinov, Medafco, Genilem Algeria Algerian Start up Initiative, Alinov, Medafco, Genilem Tunisia CONECT, CJD, API, SAGES Capital, WikiStart-up Tunisia CONECT, CJD, API, SAGES Capital, WikiStart-up Egypt EJB, GAFI, Nile Capital, ITIDA, TIEC Egypt EJB, GAFI, Nile Capital, ITIDA, TIEC Jordan El Hassan Science City, I-Park, JEDCO, OASIS 500 Jordan El Hassan Science City, I-Park, JEDCO, OASIS 500 Israel Invest in Israël, TIP Israel Invest in Israël, TIP Palestine PICTI Palestine PICTI Turkey LabX, Galata, MersinBan Turkey LabX, Galata, MersinBan Lebanon Berytech, MEVP, BIAT, Capital Trust Lebanon Berytech, MEVP, BIAT, Capital Trust EuroMed ANIMA,AFAEMME, RMEM, RMEI, ASCAME, INSME, ISPIM, BusinessMed, Bedaya EuroMed ANIMA,AFAEMME, RMEM, RMEI, ASCAME, INSME, ISPIM, BusinessMed, Bedaya USA/World TechWadi, OECD, MIT Arab Business Plan Competition USA/World TechWadi, OECD, MIT Arab Business Plan Competition Syria SEBC Syria SEBC

17. 17 3. BUSINESS DEVELOPMENT Giving an international dimension to Euro-Med start-ups and innovation clusters (International events & business development groups on IT/media, Cleantech, Agro-Food & Healthcare) 4. COACHING & MENTORING Building an international supporting network (Co- incubation, capacity building, MedDiaspora network ) MEDVENTURES Network & Action Platform 1. SOURCING Mobilizing Mediterranean high growth start-ups, diaspora and innovation centers 2. ACCESS TO FINANCE Boosting Euro-Med early stage investment (Tools, trainings & investment workshops) 4 action lines

18. 18 «EBAN Annual Congress» Hosted by NBAA Russia Moscow, 23-24 April 2012 www.ebancongress2012.org INTERESTED IN LEARNING MORE?

19. 19 CONTACT DETAILS EBAN Secretariat Rue Vautier 54 1050 Bruxelles +32 2 626 20 63 info@eban.org www.eban.org Associazione IBAN Piazza Erculea, 11 20122 Milan – Italy + 39.02.87387397 presidenza@iban.it www.iban.it