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This article presents the recommendations made by Mr. Albert Colomer, Executive Committee Member of EBAN, regarding the business angel market and trends in the European Union. The recommendations focus on supporting investments, raising awareness, standardization, supporting the best deals, and more.
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EBAN recommendations related to Business Angels for the EU level Presented by: Mr. Albert Colomer Executive Committee Member of EBAN
About EBAN • Business Angel market and trends • 3. EBAN Recommendations for European Commission Content
EBAN is the European Trade Association for Business Angels, Seed funds and other Early Stage Market • Players. • EBAN is a non-profit association representing the interests of business angels,business angels networks • (BANs) and federation of networks, seed funds and other entities involved in bridging the equity gap in • Europe. More than 100 associated BAN’s , Federations & other players in 29 countries. • EBAN was established with the collaboration of the European Commission in 1999 by a group of pioneer • BANs in Europe and EURADA (European Association of Development Agencies). • What we do: • Represent the early stage investment market in Europe • Carry out research on the angel market and produce facts and trends (Since 2004, we publishes the annual report of Angel activity in Europe &) • Identify and share best practice ( EASY and Access ICT last European Projects) • Promote the role and visibility of business angel networks and early stage funds in Europe (Since 2009, EBAN has been publishing the official BA Tax Break and Co-Investment Funds reports) • Promote synergies and networking opportunities among actors in the industry • Support the emergence of professional structures and quality standards across Europe • Support the internationalization of the angel and early stage industry and movement (Helping several countries to create Angel communities and also to implement BA Tax Breaks) . About EBAN More info in: www.eban.org
About Eban 1 Created in 1999 by Eurada with the support of European Commission 2 Not for profit organization based in Brussels 3 Members in 35 countries 4 4 + 100 members (BANs, Federations…) …and growing
Business Angels are growing and are filling partially the financing gap of the early stage SME in Europe. EBAN reported in 2012 that there where about 460 organized angel networks in Europe, compared to around 50 in 1999. These 460 organizations gather some 20.000 angels. Business angel finance is relatively untapped in Europe compared to the US, where the angel market is five times larger. However business angel investment activity and performance is very difficult to monitor unless they are tracked by being members of a recognized Business Angel Network, EBAN estimates: EUROPEAN ANGEL MARKET= c. 21.9% OF US ANGEL MARKET Business Angel market and trends Source:EBAN Statistics compendium; NVCA Yearbook 2011; Center for Venture Research at the University of New Hampshire
Number of BANs in Europe 297 286 Sources: Direct stats from EBAN Members + Deals published by investors + Published information from credible sources data collected
Amount Invested by BAs members of BANs (M€)… estimated to total BANs 508M€ 427M€
Amount invested:Size of Visible/ Invisible Market 2011 2012 4.745 M€ 5.086 M€ 509 M€ 427M€ Visible Market 9% 10%
Amount invested: size of market €5,1 Bln €17,4 Bln 30%
Number of BAs* in BANs 2011 2012 241.444 261.054 21.730 26.105 “formal” market 9% 10% *BAs who made at least 1 investment in the past 3 years.
Angel investments in Europe Michelson Diagnostics
Average investment amount by BANs(k€) 7100 Average = 1,1M€
Impact in the economy Companies Financed 1.872 (2.900) Jobs Created 11.434 (17.700)
Businesses funded/ BAs For every 100 BAs 16 companies get funded Average = 0,158
According to different studies, and our presence in 29 countries in Europe, EBAN recommends to support a European Business Angel facility that has an order of magnitude of at least 400M€ to help the Member States to leverage their most valuable asset: the Business Angels knowledge and financial availability to back the new entrepreneurs: • 1. Support investments by suitably experienced angel syndicate , BANs • and groups or individual BAs investing locally or specially cross border. • 2. Raise awareness of angel investing in Europe and help creating • a professionalized eco system. • 3. Facility some form of standardization across countries amongst • others trough the use of BA co-investment schemes and platforms • to enhance visibility on deal flow. • 4. Support the best deals (demand-driven, no country quotas) • 5. Commission more research on the European Angel Market Co-investing Schemes/ with Angels More BANs and multi country networks Cross border investing/ EASY experience EBAN Recommendations for European Commission Build companies with international growth potential Study better the BA European market
The European Commission should promote besides their Member States: Stimulate the activity of “Business angels” and cross-border investments National policies for the financing of the new and existing BA networks National public-private co-investment schemes Alternative investment class policy by introducing tax breaks EBAN Recommendations for European Commission