“Business Angel investing across Europe”

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

2. About Business Angels Business Angel: Private individual investing own wealth in early stage businesses AND own expertise and network of contacts • INVEST: • Investment 25 000 - 250 000 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: • Current & comprehensive Business Plan /Teaser • High growth / scaleable / strong business forecast • Developed product / service with sales • Angel involvement welcome • Realistic pre-money value • Strong & committed Management Team • BUT Entrepreneur’s qualities are most important

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

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

6. GOBAN- Business Angel Network of Castilla La Mancha, Spain www.gobanclm.com Regional GovernmentFinancial 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)

7. Who are EBAN? Circa 100 members EBAN 13 Federations – 250 angel networks + associated members 20.000 angels 27 countries Membership X4 in 5 years 40.000 entrepreneurs Over 100 members Now open to seed funds 80.000 website viewers 8.000 publication readers

8. European Angel Market Characteristics • 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

9. European Angel Market Characteristics Number of Business Angel Networks

10. Summary of industry statistics Source: Compiled information from EBAN, ACA and Center for Venture Research

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. 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 How to encourage angel activity?

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. The Future: WBAA – World Business Angels Association • 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.

16. ¡¡Thank You!! Contact details: EBAN Rue Vautier 54 1050 Brussels | Belgium E: Info@eban.org W: www.eban.org Contact details: Angel Prieto GOBAN Avenida 4ª nº 3 E-02007 Albacete | Spain E: aprieto@gobanclm.com W: www.gobanclm.com