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Business Angels. or Informal Investors by Mr Ties van der Laan Ties Corporate Finance 10, rue des Alouettes, L-1121 Luxembourg-Cents Luxembourg m +352 691 427 566, t/f +352 427 566 e ties@ties.lu, i www.ties.lu. Business angels. Characteristics Who are they? What do they seek?
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Business Angels or Informal Investors by Mr Ties van der Laan Ties Corporate Finance 10, rue des Alouettes, L-1121 Luxembourg-Cents Luxembourg m +352 691 427 566, t/f +352 427 566 e ties@ties.lu, i www.ties.lu
Business angels • Characteristics • Who are they? • What do they seek? • How do they operate?
BA’s: characteristics • Successful business(wo)men • “Have been there, done that” • Invest their own money • Funds: up to € 1m, few larger • Deals: from € 15-200k, typically € 75k • Aged between 50-70 years, few younger • Driven by “giving something back” • Other agendas - fun, involvement • Profit less significant
Who are the BAs? • Executive angel • Active entrepreneurs, executives or consultants • Investments between € 50k - € 100k • Extra turnover, networking, hobby • Job seeking angel • Redundant executives • Work in the € 30k - € 70k area • Busy, active • Retired angel • Workaholics • Smaller amounts (€ 15k - € 50k) • Busy, active
What do BAs seek? • Small companies • Mostly active in markets they know • Growth in growing, large, empty niche markets • In 7-10 years potential turnover >100m • Also invest in seed phase • Nearby • Return • Profit through tradesale or IPO • Dividend, interest and fees • Likeable persons • In business (entrepreneur) and private (talk) • Mutual trust
How do BAs operate? • Intake • Via friends, family or business (angel) networks • Low due diligence • The deal • Straightforward structure • Veto rights, minority protection, anti-dilution • Time frame from several weeks to one month • After the deal • Close involvement: 1-3 days/week • Hands on unless going badly • Business devils
From start to finish (I) The more steps you complete the easier it becomes to raise finance: 1. Finalise your product (grants) 2. Find entrepreneur (yourself?) 3. Found company (own money, house, FFF) 4. Find business partners (sponsors) 5. Find customers and sell (auto-finance) 6. (Accelerated) growth (raise finance) continued on next slide
From start to finish (II) continued from the previous slide 7. Raising equity finance: • 1. Prepare business plan/presentation/pitch • With help of dedicated professionals? • 2. Research financial world • Business Angel Networks (BANs, www.eban.org) • EVCA/local VCAs (www.evca.com) • Networking • 3. Approach chosen potential investors • With help of dedicated professionals? 8. Later stage: MBO/MBI/Turnaround 9. Raising equity finance: see 7. 10. Sell: tradesale or IPO
Ties Corporate Finance Business coach in raising finance for the start-up or expansion of businesses To create a winning business plan To approach investors professionally To negotiate with investors successfully
Contact details Ties Corporate Finance Ties van der Laan 10, rue des Alouettes L-1121 Luxembourg-Cents Mobile: (+352) 691 427 566 Fax: (+352) 427 566 Email: ties@ties.lu Internet: www.ties.lu