“Business Angel investing across Europe” Angel Prieto General Manager of GOBAN – B.A.N. of Castilla La Mancha, Spain Member of EBAN EBAN - The European Trade Association for Business Angels, Seed Funds & other Early Stage Market Players E: W:

2 About Business Angels Business Angel: Private individual investing own wealth in early stage businesses AND own expertise and network of contacts INVEST: Investment euro No sector preference Often prefer to invest in their region of residence Usually total investments below 25% of wealth SHARE: Willing to share their managerial skills, specialist knowledge and networks Seeking profit, but also fun Can become involved in the business (“active Angel”) or not (“passive Angel”).

3 About Business Angels Characteristics that Business Angels are seeking: 1.Current & comprehensive Business Plan /Teaser 2.High growth / scaleable / strong business forecast 3.Developed product / service with sales 4.Angel involvement welcome 5.Realistic pre-money value 6.Strong & committed Management Team 7.BUT Entrepreneur’s qualities are most important

4 Angels and Other Finance Sources Capital Needs Time Seed Start-upEarly GrowthSustained Growth Higher Risk Friends, Family & Founders Business Angels Venture Capital Funds IPO 0 Angels help fill the ‘Equity Gap’ Early stage and seed venture funds Lower Risk

5 About Angel Networks EntrepreneurBusiness Angel Contact of BAN Business plan evaluation and validation Drafting of business plan summary Investment readiness programme Preparation of a presentation Identification Training Identification of investment priorities BA added to database Participation in investment forum/club Confronting offer and demand Circulation of Business plan MATCHING Leverage funding, co- funding, bank loans

6 Regional Government Financial Aid Managed by Business Innovation Centers Chamber of Commerce involvement Regional coverage (4 contact points) Web based services Venture Academies (40 Entrepreneurs) Investment Days (20 B. Angels) GOBAN- Business Angel Network of Castilla La Mancha, Spain

Who are EBAN? EBAN 13 Federations – 250 angel networks + associated members angels entrepreneurs website viewers publication readers 27 countries Over 100 members Membership X4 in 5 years Now open to seed funds Circa 100 members

8 Very varied level of development –UK has the most mature market in the EU –France, Germany, Sweden, Belgium, Finland, Netherlands –Smaller players, e.g. Italy, Spain, Norway –AEBAN – Spanish B.A.N. Association with 24 members –Very small markets, Slovenia, Greece, Portugal Different types of founders Varied level of Government support National trade associations sometimes represent the market Rapid growth European Angel Market Characteristics

9 Number of Business Angel Networks

10 Summary of industry statistics Source: Compiled information from EBAN, ACA and Center for Venture Research 2008EUUS Networks For profit31%59% Estimate n of angels Investment per round € $ Total estimate invested annually 4 billion€20 billion€

11 Trends last two years Increasing co-investments with early stage funds and other investors Increasing provision of training services for investors and entrepreneurs Majority of investments still made at regional level but changing Diversification of investment sectors

12 How to encourage angel activity? NATIONAL LEVEL Fiscal environment - Capital gain or loss exemption from tax - Equity guarantees Non-financial incentives Syndication opportunities w/ other Funds Business Angel Academies Venture Capital Academies Investment days Integration of BAN activities in the regional entrepreneurship strategy

13 Role of National Federations A common voice for all business angel networks at national level Higher visibility for the angel movement – representation near third parties A repository of good practice, case studies at national level A Government partner for research, policy development, etc to facilitate business angel investing

14 Industry Experience Percent of exits Exit multiple

15 Establishing a proper environment for financing innovation and entrepreneurship Know and disseminate the proper tools for financing innovation and entrepreneurship, available worldwide Establish partnerships between angels networks from different countries, including stimulating angel cross border investments It is important for policy makers worldwide to use information gathered by the Business Angels community, and to foster their capacity to create and develop financing mechanisms, in a public-private partnership logic, to support innovation and entrepreneurship. The Future: WBAA – World Business Angels Association

16 ¡¡Thank You!! Contact details: EBAN Rue Vautier Brussels | Belgium E: W: Contact details: Angel Prieto GOBAN Avenida 4ª nº 3 E Albacete | Spain E: W: