Activity Report 2009

The European Trade Association for Business Angels, eban Seed Funds, and other Early Stage Market Players

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EBAN GOLD Sponsors EBAN RESEARCH Sponsor Table of contents

EBAN: an introduction ...... 3

A word from the President ...... 4

What is EBAN doing for you? ...... 6

What do our members say? ...... 7

EBAN membership ...... 7

Full members ...... 8

Affiliate members ...... 8

Associate members ...... 8

Member recruitment ...... 9

Governance structure...... 11

Executive Committee ...... 11

Members of the Board ...... 11

EBAN Secretariat as of March 2010 ...... 12

EBAN working committees in 2009...... 12

EBAN 5 Pillars of Activities ...... 13

1. Awareness raising ...... 13

Summary of activities in 2009: speeches and presentations ...... 13

EBAN Statutory meetings ...... 16

EBAN Events ...... 16

2. Policy influencing ...... 18

Relations with the European Administration ...... 18

3. Benchmarking ...... 19

External communication ...... 19

Publications ...... 19

4. Participation in European projects ...... 22 European Business Angel Network - Activity Report 2009

Ready for Equity!2 ...... 22

5. Capacity Building ...... 23

6. Summary of member services in 2009 ...... 28

EBAN European Sponsors ...... 29

EBAN Gold Sponsors ...... 29

EBAN Research Sponsor ...... 29

Extending our reach ...... 30

Business angels are high net worth individuals investing their own monies and their management/entrepreneurial experience into unquoted high growth potential start-ups.

Business Angel Networks (BANs) are national or regional, local, commercial or industry sector organisations set up to promote means of introduction between small and medium sized enterprises and private investors with entrepreneurial experience (business angels).

Early stage venture capital and seed funds are those which invest in the equity gap (€500.000 to €3 million), i.e. making a maximum of €3 million investment per company in young innovative SMEs across Europe.

European Business Angel Network - Activity Report 2009

EBAN: an introduction

EBAN is the pan-European trade association for the early stage investment community. Set up in 1999, and based in Brussels, it reaches out through direct and indirect membership to more than 250 business angel networks in Europe. These in turn federate some 20.000 angels, and receive about 40.000 business plans a year. In 2009, EBAN opened up its full membership to early stage venture capital funds, in an effort to represent all actors involved in bridging the equity gap in Europe. EBAN brings together 103 member organizations and individuals in 28 countries today (figures as of March 15, 2010).

Our mission statement is to represent the early stage investment community in Europe.

Our members are: • Federations of business angel networks • Business angel networks operating at European, national, and/or regional level • Early stage venture capital funds • Individual business angels • Organisations supporting access to investment in early stage companies.

We have 5 key pillars of activity: ‐ Awareness raising: about the importance of early stage investors in filling the equity gap and of business angel networks and early stage venture capital funds in matching innovative companies with capital and mentorship. ‐ Policy influencing: Since 1999 EBAN has established a trusted and continued dialogue with European policy makers to improve the working environment of early stage investors. ‐ Benchmarking: EBAN carries out research on the angel market, on topics such as fiscal incentives, co-investment funds, angel network activity…These publications are available free of charge for our members in the member section of the new EBAN website. ‐ Capacity building: EBAN provides opportunities for its members to get better at what they do by exchanging with peers, having access to tools and templates, privileged participation in partner events, organization of study visits. ‐ Participation in European projects: EBAN has been partnering with other organizations and some of its members in European supported projects which have an impact on the day to day work of its constituency: to build a cross border training curriculum for angels and entrepreneurs (Ready for Equity!), or to help early stage investors make cross border investments (EASY).

European Business Angel Network - Activity Report 2009

A word from the President

Dear colleagues,

When reading this activity report you will, like me, share the excitement of being part of an association whose objective is to grow the business angel and early stage investment sector.

We have seen that despite the economic and financial crisis, business angels have continued to invest throughout 2009. Business angels are essential providers of capital and mentorship for high growth start-ups and have played a pivotal role last year in making sure great companies stayed afloat and received the capital they needed to grow. Last year more than ever, financial actors in the early stage investment market felt the necessity to come together to share their experience and best practices. It is therefore no surprise that 2009 saw the biggest growth in membership since the association’s creation. We have reached the milestone of more than 100 member organisations last year from 28 countries!

In an effort to represent all actors involved in bridging the equity gap in Europe, EBAN decided to open its full membership to early stage venture capital funds in 2009. It now has 7 funds as members and their contribution is essential to EBAN’s work as trade association for early stage actors. We have also seen a renewed interest from individual angels to join EBAN in order to stay informed about the latest trends in the market, network with peers and find co-investors for great projects.

In 2009, we inaugurated new services for our members, among which the organising of a study visit to Silicon Valley and the launch of our new website with exclusive information available to our members.

We are delighted to announce that the European Space Agency and their Technology Transfer Programme have become EBAN Gold sponsor in 2009. Our partnership will ensure that our members are aware of the best satellite downstream applications from the ESA research and incubation programmes.

Through our partnership with BDO, also signed in 2009, we have produced two reports respectively on fiscal incentives and co-investment funds for angels that are very useful for angels, entrepreneurs, policy makers and intermediaries. They can be found on our website and are free of charge for our members. In 2010, these publications will be shortly updated and we will seek to extract information and analysis from the data to provide added value to our member’s day-to-day work.

European Business Angel Network - Activity Report 2009

EBAN has encouraged its members to become BizSpark partners to offer their start-up companies access to Microsoft tools since 2008, and is delighted to accompany Microsoft’s objective to bring together the best BizSpark companies to early stage investors.

Looking ahead, our Board anticipates the market to evolve from growth to sophistication/professionalization. It will be EBAN’s key role to support this professionalization process and make sure that early stage investing is recognised as an asset class

In the coming years we will continue to build our membership base by delivering high value to our members in the following areas:

- Research on the market - Professional standards - Policy influencing - Capacity building for business angel network and seed fund managers - Support to cross border collaboration of our members

I would like to take this opportunity to thank EBAN’s Secretariat for their professionalism and commitment, as well as the Executive Committee and the Board of Directors for their support.

Sincerely,

Brigitte Baumann

European Business Angel Network - Activity Report 2009

What is EBAN doing for you?

Over the last 10 years, EBAN has strived to develop for its members a number of services corresponding to their needs in terms of: • Policy influencing • Awareness raising • Benchmarking • Capacity building • Development of new tools and knowledge through European project participation.

Why do members join? EBAN is the voice for the early stage investment community in Europe. Through regular contacts with European policy makers, it has established business angels as a vital source of early stage capital and mentorship for innovative companies. It has worked to help business angels to be active in funds supported by the European Investment Fund. It is pushing for support to business angel networks, capacity building programmes for investors and entrepreneurs, and BAN and seed fund managers.

EBAN helps its members to stay on top of trends in the early stage investment market by building new relationships, find new business opportunities by networking with peers across borders. Through our tools, events, research, information flow and working committees, our members get answers to their day-to-day challenges and become better at what they do.

EBAN is also a platform to support cross-border collaboration between early stage investors which are looking for deal flow, for co-investors and to access local and industry sector knowledge, expertise and networks.

We look forward to extending our reach to new organizations and more countries across Europe, and to pursue our international collaborations to provide value added services to our community of members. It is our objective to ensure that in the next 3 years, early stage investors will be perceived as a true asset class and as supporters of high growth companies in preparation for later stage investors.

Claire Munck Managing Director

European Business Angel Network - Activity Report 2009

What do our members say?

“I attended my first EBAN workshop in Barcelona in 2002 and was impressed with France Angels and Nebib’s programmes to improve the capacity of new angel investors. London Business Angels had never previously attempted this approach and is now actively engaged in this type of programme, including sector specific such as the creative industries” Anthony Clarke, London Business Angels, United Kingdom

"EBAN’s consistent and high quality research on analyzing the market and identifying trends and gaps has allowed us to better understand the quality and quantity of work needed to strengthen early stage financing in Europe". Luigi Amati, META Group, Italy

There are two main reasons for us to be a member of EBAN: 1.Sharing know-how with other professional network managers from all over Europe. 2. Stabilization and growth of the Business Angel culture in Europe by participation to international working groups and political influencing.

Arne-G. Hostrup, f.u.n Netzwerk|Nordbayern, Germany

*Our BAN enjoys higher awareness (locally and internationally) *We are in touch with the latest developments in angel investment in Europe (and the States) *We have access to information and educational material that strengthen our professionalism and support our development *We receive practical assistance in a series of needs *We established communication with other BANs in Europe (and there are huge opportunities for further networking) *We receive some business leads from EBAN (Greek entrepreneurs who contacted with EBAN were directed to us). George Krikelas, Mentoring Business Development Services, Greece

“I think that the services provided by EBAN by now are well balanced and professional: You are doing extremely good.” Helge Hardacker, Quantum Board, Germany

European Business Angel Network - Activity Report 2009 EBAN membership

Full members

A) Business angel networks, federations of networks set up to promote the angel market, business angel groups, angel funds or angel syndicates

B) Early stage venture capital and seed funds

Early stage venture capital and seed funds are those who invest in the equity gap (€500.000 to €3 million), i.e. making a maximum of €3 million investment per company in young innovative SMEs across Europe.

EBAN particularly welcomes those funds that: - Currently work with business angels at local level and would like to start cross-border collaborations - Have an interest in increasing their collaboration with angels, in particular to source good deal flow - Have a strong interest in cross-border activities.

As the equity gap widens, there is a need for early stage financiers to ensure that high growth potential companies have access to finance.

Affiliate members

Affiliate members are business angels/private individuals who have invested or intend to invest in small and medium sized businesses. They provide finance and expertise or business skills to the enterprise.

Associate members

Associate members are organisations which do not meet the aforementioned criteria for full membership, but who have evident interest in the business angel industry.

European Business Angel Network - Activity Report 2009 Member recruitment

BAN: Business angel network; SF: Seed fund; FED: Federation of networks; ASSO: Associated; IND: individual/affiliated

Organisation/Individual Country Category Veraventure Ltd. Finland BAN Maxwell Group The Netherlands BAN Andorra Angels Andorra BAN Helia Partners France ASSO INNOSTART National Business and Innovation Center Hungary BAN UNICer - French National Association of the investors in regional France ASSO enterprises Italian Angels for Growth Italy BAN Polish Investment Fund Poland SF Active Venture Partners Spain SF HUBAN Ltd Hungary BAN International Realty Group LTD Bulgaria ASSO Business Angel Seedfund Sp. z o.o. Poland SF BAN EUSKADI Spain BAN Christian Hultner Spain IND WABAN Belgium ASSO Mountain Partners Group Switzerland SF AEBAN - Asociación Española de Business Angels Networks Spain FED The Association of E.C. Business & Innovation Centres in Ireland Ireland BAN HALO Business Network (HBN) Ireland FED Louis Loizou United Kingdom IND Business Angels Nord de France France BAN Dr. Laurenne Hemily-Figus Italy IND Total 22

120 Associated Members 100 Federation Members

80 Networks Members 60

Early Stage Funds 40

20 Affiliate members

0 2004 2005 2006 20079 2008 2009

European Business Angel Network - Activity Report 2009

As of March 15, 2010, the membership of the association is composed of 103 members from 28 countries, out of which 58 are BA networks and early stage funds, 16 federations of BA networks, 23 associated organisations and 6 affiliated members (individual angels). EBAN has members in 19 countries out of the 27 EU member states. The other countries represented in EBAN are part of geographic Europe but not the EU and/or countries outside Europe.

The country breakdown for EBAN’s European based members is as follows:

Belgium United Kingdom Andorra Austria 4% Bulgaria Andorra 14% 1% 1% 3% Croatia Austria 1%Finland Belgium 2% Bulgaria Turkey Croatia 3% France Finland Switzerland 9% France Germany 3% Greece Sweden Hungary 4% Ireland Germany Italy 7% Luxembourg Netherlands Norway Greece Poland 3% Portugal Spain Hungary Russia 14% 2% Slovenia Ireland Spain 2% Italy Sweden Slovenia Switzerland Russia 4% Luxembourg 1% Portugal Norway Netherlands Turkey 1% 1% United Kingdom 4% Poland 1% 7% 4%

Year per year, this has been the evolution of EBAN´s membership by category:

2004 2005 2006 2007 2008 2009 15-Mar-10 Early Stage Funds - - - - - 4 7 Network Members 14 24 30 31 38 55 51 Federation Members 9 9 10 11 14 13 16 Associated Members 10 10 10 13 18 26 23 Affiliated Members 6 Total: 33 43 50 55 70 98 103

European Business Angel Network - Activity Report 2009 Governance structure

Executive Committee

President of the Association (April 2009 – April 2010) Brigitte Baumann, Go Beyond, EU/Switzerland

Vice-President of the Association Jacek Blonski, Lewiatan Business Angels, Poland

Members of the Executive Committee in 2009 Anthony Clarke, British Business Angels, United Kingdom (EBAN Chairman Emeritus 2009-2010) Philippe Gluntz, France Angels, France Albert Colomer i Espinet, Business Angel Network Catalunya, Spain

Members of the Board

Paolo Anselmo, IBAN (Italy) René Reijtenbagh, OOST NV (The Netherlands) Sergi Mora, ACC1Ó (Spain) Jean-Marc Blankert, SECA (Switzerland) Paulo Andrez, FNABA (Portugal) Steve Glange, Luxembourg Business Angels Network (Luxembourg) Sally Goodsell, Finance South East Ltd (United Kingdom) Ute Günther, BAND (Germany) Arne-G. Hostrup, NETZWERK l NORDBAYERN (Germany) Risto Kalske, SITRA PreSeed Finance (Finland) Roland Kirchhof, BAAR (Germany) Juan Roure, IESE (Spain) Marie Reinius, SVCA (Sweden) Luigi Amati, META Group (Italy) Joseph De Gheldere, BE ANGELS (Belgium) Joao Larroude Trigo Da Roza, APBA (Portugal) Francisco Banha, GESVENTURE (Portugal) Rolf Richter, BANSON (Germany) Jacques Evrard, EURADA (Belgium/EU) - Observer Guy Rigaud, UNICer (France) - Observer Claire Munck, EBAN (Belgium)

European Business Angel Network - Activity Report 2009 EBAN Secretariat as of March 2010

Claire Munck, Managing Director Alberica Marzotto, Project Manager Silvia Santos-Alonso, Administrative Assistant

EBAN working committees in 2009

Below is the list of committees which were active in 2009:

Research Identify areas of research for EBAN Identification of potential sponsors of research Preparation of calls for propositions for research partners

Membership Formulate the value proposition of EBAN to members Identify potential new members in particular in the early stage venture capital funds category

Marketing Revision of EBAN’s marketing brochure Work on EBAN’s new website

Sponsorship Identification of potential sponsors and follow-up with current sponsors Revision of sponsorship material

European Business Angel Network - Activity Report 2009

EBAN 5 Pillars of Activities

1. Awareness raising Summary of activities in 2009: speeches and presentations

Representation activities from the Secretariat of EBAN

Claire Munck, Managing Director of EBAN, attended the following events: 14/01/2009 Expert Workshop on intellectual property aspects of EIT, Brussels, BE 16/01/2009 EASY Last Partner Meeting, London, UK 19-20/01/2009 BBAA Winter Workshop: Sustaining early stage investment in 2009, London, UK 17/02/2009 SME Union Working Breakfast at the European Parliament on "Stimulus during Financial & Economic Crisis: The Role of Private Industries”, Brussels, BE 03/04/2009 Training for the Enterprise Europe Network about business angels, BE 07-08/04/2009 3rd International Conference on Solar Photovoltaic Investments, Frankfurt, DE 20-22/04/2009 WBAA Charter member meeting, Dubai, UAE 11-12/05/2009 Ready for Equity partner meeting, Milan, I 18-20/05/2009 Study Visit to Silicon Valley, San Francisco, USA 03/06/2009 Jury member for the Transatlantic Green Platform at the World Investment Conference, La Baule, FR 18/06/2009 EURADA Policy Meeting “Global crisis – Regional solutions”, Brussels, BE 09/07/2009 5th Annual BBAA Summer Conference, Birmingham, UK 22/07/2009 Europe Unlimited Business Panel on Future Innovation Policy, Brussels, BE 30/09/2009 Training for the SMEs Unit of DG Research, Brussels, BE 28/09/2009 European Commission "Women Workshop on Entrepreneurship", Brussels, BE

Meetings were also organised with representatives from JA-YE, the Kauffman Foundation, the OECD, and Astia.

Alberica Marzotto, Project Manager of EBAN, attended the following events: 19/02/2009 Be Angels - Ernst & Young Workshop “Start-ups, Spin-offs et jeunes entreprises innovantes face à la crise: Comment adopter les bons réflexes dans la conduite des affaires?” BE 11-12/05/2009 Ready for Equity partner meeting, Milan, I 04/06/2009 ECOWAS Trade & Investment Conference, Brussels, BE 10/07/2009 SENSI Workshop: BANs and their role in financing start-ups, Pristina, Kosovo 14/10/2009 Ready for Equity!2 partners meeting, Bilbao, ES 08/10/2009 Opening of the Global Entrepreneurship Week European Meeting, Brussels, BE 20/11/2009 MersinBAN Final Conference, Mersin, TK 13

European Business Angel Network - Activity Report 2009

5-10/12/2009 1st WBAA Global Conference, Beijing, CH

Marco Serena, marketing and sponsorship assistant trainee, attended the following events: 17/03/2009 Industrial Competitiveness – Challenges, opportunities, and the role of policy in difficult times, Brussels, BE 14-15/05/2009 AGORADA Forum: Global Crisis: Regional Solutions, Brussels, BE

Erica Norchi, marketing and sponsorship assistant trainee, attended the following event: 01/10/2009 EU Finance Day for SMEs, Brussels, BE

Silvia Santos-Alonso, Administrative Assistant of EBAN, attended the following event: 01/10/2009 EU Finance Day for SMEs, Brussels, BE

Representation of EBAN by its Board Members

Brigitte Baumann, President of EBAN 16/04/2009 Angel Capital Association Annual Summit, Atlanta, USA 28/09/2009 UNECE event "Promoting Innovation-based Entrepreneurial Opportunities in the UNECE region”, Geneva, CH 29/09/2009 European Commission "Women Workshop on Entrepreneurship", Brussels, BE 5-6/10/2009 The MedTech Investing Europe Conference, London, UK 14/10/2009 FranceAngels Annual Congress, Paris, FR 15/10/2009 EVCA’s Venture Capital Forum, Berlin, DE 30/11/2009 EurOffice Services (EOS) 1st Annual Conference: ‘Going International – Building a High Growth Company with Smart Investment’ in the panel "Dragon’s Review and Audience Vote", Sophia Antipolis, FR 5-10/12/2009 1st WBAA Global Conference, Beijing, CH 11/12/2009 "The role of Business Angels as alternative financial source of innovating companies in Spain", Madrid, ES

Jacek Blonski, Vice-President of EBAN 27-28/05/2009 Venture Capital IT 2009 - 9th International Congress for Entrepreneurship and Venture Capital organised by FNABA, Lisbon, PT 10/06/2009 "Business Angels – an alternative source of financing innovative SMEs" at the UNECE International Conference on knowledge-based development in Minsk, Belarus. 17/06/2009 Hit Barcelona - the Global Innovation Summit, Barcelona, ES

Anthony Clarke, EBAN Executive Committee member 16-17-18/02/09 Small and Medium Entrepreneur Conference & Expo, Al Azaiba, Oman 23/04/2009 EU finance day for SMEs, Oslo, NO 21-23/06/09 UH MTIC Medtech Symposium, UK

European Business Angel Network - Activity Report 2009

29/06/2009 SME Finance Day, London, UK 29/09/2009 Launch of the Dutch federation of networks, The Hague, NL

Albert Colomer, EBAN Executive Committee member 21/02/2009 EU SMEs Week, Madrid, ES 17/06/2009 Hit Barcelona - the Global Innovation Summit, Barcelona, ES 11/12/2009 "The role of Business Angels as alternative financial source of innovating companies in Spain", Madrid, ES

Steve Glangé, EBAN Board Member 21-22/05/2009 UNECE event “International Conference on Ways and Means of Attracting External Finance for New Innovative Enterprises” in Astana, Kazakhstan 17/06/2009 Hit Barcelona - the Global Innovation Summit, Barcelona, ES

Paolo Anselmo, EBAN Board Member 17/06/2009 Hit Barcelona - the Global Innovation Summit, Barcelona, ES

Luigi Amati, EBAN Board Member 17/06/2009 Hit Barcelona - the Global Innovation Summit, Barcelona, ES 15/10/2009 EVCA’s Venture Capital Forum, Berlin, DE

Joseph De Gheldère, EBAN Board Member 27/05/2009 "Study Day on University Spin-offs", Liège, BE 20/11/2008 19th YES Annual Summit, Brussels, BE 03/12/2009 Presented "Business Angels’ Activities in Europe and Trends on the European Angel market" at the “2nd European Forum Co-operative Banks and SMEs”, Brussels, BE

Jean Marc Blankert, EBAN Board Member 14-15/09/2009 7th WIPO Forum on Intellectual Property and SMEs for IP Offices and Other Relevant Institutions in OECD Countries, WIPO Headquarters, Geneva, SZ

Arne G. Hostrup, EBAN Board Member 17/11/2009 First Austrian Business Angels Conference organised by First Love Capital, Vienna, AU

Other representatives:

Anton Todorov 28/05/2009 SME Finance Day, Sofia, BU 23/10/2009 "How Ideas Evolve", Sofia, BU

European Business Angel Network - Activity Report 2009

16-22/11/2009 Presented EBAN at an event organized as part of the Global Entrepreneurship Week by the local consultancy BRED Center and the Youth Entrepreneurial Service (YES) Foundation in Skopje, Macedonia

Reginald Vossen, BAN Vlaanderen, B 13/05/2009 Microsoft European Investment Summit, Prague, CZ

Albino Freire, FNABA, PT 17/06/2009 Hit Barcelona - the Global Innovation Summit, Barcelona, ES

Frank Schoz, member of Netzwerk Nordbayern, D 05/03/2009 CEBIT Fair organised by DG Information Society and Media

EBAN Statutory meetings

20/02/2009 EBAN Board of Directors, Brussels, Belgium 28/04/2009 EBAN Board of Directors meeting, Madrid, Spain 28/04/2009 EBAN General Assembly, Madrid, Spain 28/04/2009 EBAN New EBAN Board of Directors meeting, Madrid, Spain 15/07/2009 EBAN Executive Committee meeting, Brussels, Belgium 09/11/2009 EBAN Board of Directors meeting, Stockholm, Sweden.

EBAN Events

9th EBAN Annual Congress and 4th Awards Ceremony Hosted by ESBAN - Red Española de Business Angels "Celebrating risk taking: the contribution of business angels and early stage investors" Madrid, 27/28 April 2009 http://www.congress2009.eban.org

The EBAN 9th Annual Congress and 4th Awards Ceremony 2009 took place in Madrid on April 27th and 28th. The event was hosted by EBAN member ESBAN - The national federation of business angel networks in Spain. The event was a true success in terms of networking opportunities as nearly 300 participants attended this event, a record especially taking into consideration difficult financial circumstances brought by the economic crisis. The Congress was also the occasion to celebrate the 10th anniversary of EBAN’s creation in 1999. Guests debated the following themes: • Reactions from angel group leaders and early stage fund managers on the current economic crisis • Angels share their success and war stories • How the early stage investment market funds successful biotech companies • What does it take to be a good early stage fund manager?

European Business Angel Network - Activity Report 2009

The EBAN Awards Ceremony took place on April 27th at the prestigious Casino de Madrid gathering around 220 guests.

2009 Award Winners were: ¾ Business angel of the year: Dr. Cornelius Boersch ¾ European early stage fund manager/team: Guy Rigaud, Rhônes Alpes Création, France ¾ European business angel group leader/team: Paris Business Angels, France ¾ Best cross border deal: Tie between BUY VIP and Louise ¾ Most successful angel backed company: Aventiv, Belgium ¾ Best lobbying initiative (in support of business angels and early stage investors): Italian Business Angels Network

8th EBAN Winter University

Hosted by SVCA – The Swedish Private Equity & Venture Capital Association "How to seize opportunities together" Stockholm, 31 October 2008 http://winteruniversity2009.eban.org/

The EBAN 8th Winter University organized with the EBAN federal member in Sweden SVCA (the Swedish Private Equity & Venture Capital Association), took place at Grand Hotel, Stockholm on 10th November 2009 as official part of the Swedish EU Presidency. The transnational workshop gathered around 140 stakeholders from the early stage investment market across Europe.

The event included a pre-event session (by invitation only) Breakfast on “Stimulating female entrepreneurship and investing” and a training session open to registered participants on legal agreements between entrepreneurs and investors.

Participants discussed current issues affecting the European early stage investment market such as: • Different investment tools used by early stage investors and why • Preparing for exits • The development of a female business angel market

European Business Angel Network - Activity Report 2009

• The Swedish Experience regarding public support to the angel market and a benchmark with other European countries

The breakdown of the participants at the Winter University was as follows:

2. Policy influencing

Relations with the European Administration

EBAN continues to maintain important contacts with the European Commission, in particular DG Enterprise and Industry. The EBAN Secretariat and some of its members have been present in 2009 at: ‐ Expert workshops on investment readiness ‐ Expert workshops on intellectual property rights ‐ Expert workshops on bankers and SMEs ‐ Expert workshops on women entrepreneurship

EBAN has in 2009 contributed to the Enterprise Finance Index with its statistics on the European angel market.

Vesa Vanhanen, Deputy Head of Unit – Financing Innovation and SMEs - at DG Enterprise and Industry, met with the Executive Committee members in July 2009.

European Business Angel Network - Activity Report 2009

EBAN has also developed worked with DG Information Society and Media and DG Research in the last years in an effort to increase awareness about the role of business angels in financing small companies.

3. Benchmarking

External communication

Newsletters

• From January 2009 to December 2009, 10 issues of the monthly Flash were distributed to our members.

Publications

The following publications have been produced by EBAN in 2009:

Directory of networks 2009 The Directory of Networks provides an annual overview of the operational characteristics of business angel networks across Europe. It includes information about EBAN members and other business angel networks identified across Europe. EBAN has been collecting data on the angel market since its creation in 1999. The Directory is available free of charge to our members.

Statistics Compendium 2009 The Statistics Compendium is the accompanying publication of the Directory of Networks. It provides an annual overview of the business angel market in Europe based on the activities reported by a number of BANs, either members or not of EBAN. In 2009, a record of 74% of surveyed networks provided information on their activities. The publication provides information both on how business angel networks operate and an insight into investment attitudes by business angels. The EBAN Statistics Compendium 2009 is available free of charge to our members.

Compendium of Co-Investment and Early Stage Funds in Europe These compendiums are the result of the EBAN collaboration with BDO, the 5th largest accountancy network in the world. The Compendium of Co-Investment and Early Stage Funds includes an overview of the different types of exiting co-investment funds with business angels country by country and a brief presentation of the main characteristics of some selected funds in Europe.

European Business Angel Network - Activity Report 2009

Compendium of Fiscal Incentives in Europe available to business angels The Compendium of Fiscal Incentives focuses on incentives available to early stage investors across Europe and includes also a brief overview of American state tax policy.

An executive summary of each of the publications is available at http://www.eban.org/resource- center/publications/eban-publications

EBAN Statement on Financial Crisis This policy paper synthesizes the impact of the financial crisis on the activity of business angels and early stage investors and what should policy makers do to make sure that great innovations find access to finance at their early stages. The statement publication is available here.

• The following publication has been updated by EBAN in 2009:

Introduction to business angels and business angel network activities The EBAN "Tool Kit" is a guide book to understand what business angels are and how they are organised in networks. This publication is aimed at future network managers as well as any other persons looking for comprehensive information on the functioning of the informal venture capital industry. This document is regularly updated with all new information at the disposal of the Secretariat. The latest update was produced in 2009. The EBAN ToolKit 2009 is available on the EBAN website.

Market Trends in 2009

The European business angel market in 2009 • 334 networks • 75.000 angels (est.) • 3 to 5 billion EUR invested (est.)

Evolution of the business angel market

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 66 132 155 177 197 231 228 211 236 297 334

350 300

250

200

150

100 20 50

0 2000 2001 2002 2003 Mid- Mid- Mid- Mid- Mid- Mid- 2004 2005 2006 2007 2008 2009 European Business Angel Network - Activity Report 2009

The key finding of this year’s collection of data on the angel market (EBAN Statistics Compendium 2009) is that business angels are going strong even more in a time of financial and economic downturn, and that angel investors have nowadays ranked as un-discussed players in the financing of high-growth, innovative start-ups.

Based on its largest sample of respondents to date, the survey reveals that across Europe, most of the key indicators of the angel market improved in 2008 vs. 2007 and that, while close to half of respondents reported a slowdown in the latter part of 2008, most saw positive trends again in 2009. Data collected in 2009 is consistent with data from 2008 in a number of areas. Some interesting findings include: • The number of business angel networks in Europe has continued to increase. They remain largely associative structures and not for profit. • The number of angels recruited last year was superior to the number of angels leaving the networks. Most countries have experienced a growth in the number of their members and in the – quality - deal flow they have received. • The average size of the deal has gone up slightly in 2008 – which could be indicative of investments made last year in existing portfolio companies or companies that traditionally should have had access to other sources of capital but had to be followed-up by angels as a result of lack of market alternative. • The impact of co-investment mechanisms in the UK is measurable, with a quasi doubling of the amount invested in companies thanks to these schemes (see country by country information). • The number of investments outside of the network’s region/country has decreased – angels focusing on local deal flow, probably as a result of the current challenges and the importance of nurturing the investee companies. • BANs collaborate significantly with other investors, in particular early stage venture capital funds and family offices. This trend is likely to increase in coming years as the equity gap continues to widen and investors active in the seed and start-up stages of companies need to collaborate. • ICT and Software remain the predominant sectors of investment for business angels Europe- wide. However business angels continue to invest in a variety of sectors, including in recent times in health related and environmental companies.

European Business Angel Network - Activity Report 2009

4. Participation in European projects

Ready for Equity!2

EBAN participated as project partner in the Ready for Equity!1 two year project (September 2006 to October 2008) lead by Finance South East and aiming to develop and test two training curriculum to improve the capacity of informal investors and to prepare entrepreneurs to present their enterprise project to those informal investors respectively.

Since October 2008 EBAN is involved as disseminating partner in the Ready for Equiyty!2 (http://www.readyforequity.eu/), part-funded under the Leonardo da Vinci European Union Programme. The follow on project aims to address the existing failure in the early stage financing chain by creating European-wide training curricula and methodology guidelines to train intermediaries (business angel network managers), business angels and entrepreneurs in emerging venture capital markets in Europe.

Lead by UK based Finance South East, the project brings together 10 partners involved in business angel activities in Europe, namely: 1. Finance South East, UK www.financesoutheast.co.uk 2. F.u.n. netzwerk|nordbayern, Germany www.netzwerknordbayern.de 3. IBAN – Italian Business Angel Network, Italy www.iban.it 4. HUBAN - Hungarian Business Angel Network, Hungary www.huban.hu 5. Entrinnova, Spain www.entrinnova.com 6. Business angels of Slovenia, Slovenia www.businessangels.si 7. First Lithuanian Business Angels Network, Lithuania www.businessangels.lt 8. Lewiatan Business Angels, Poland www.lba.pl

One university partner is involved in shaping and developing the content of the training curricula: The Winchester Business School, UK www.winchester.ac.uk, and EBAN is the main dissemination partner. EBAN is in charge of raising awareness about the project’s results near the early stage investor and entrepreneur community in Europe. In this framework, EBAN also issues a quarterly newsletter filled with ongoing project’s activities and news.

European Business Angel Network - Activity Report 2009 5. Capacity Building

The EBAN membership offered a series of increased capacity building and other add-on services opportunities to its members during 2009:

¾ New website – including a “member only” section with several features: o An interactive forum o Posting and sharing of documents o Posting of member events o Exclusive information about our members profiles (detailed directory) o Access to cross border research and data o Tools, templates and data including results from EU projects

¾ Training for Angels and Business Visit For the first time organized next to an EBAN event, a legal training for angel investors as well as a business visit were organized at part of the EBAN Winter University 2009 pre-event meetings, on November 9th as follows: o A Business visit to KISTA Science City Northern Europe’s and one of the world’s leading business districts for Information and Communication Technology (ICT) o A Legal Workshop presented by SVCA law practice sponsors, Vinge and Mannheimer Swartling. This workshop focused on legal matters in connection with later stage investments, in particular VC-funding. The session included elements that require active participation from all attendees and sought to deepen the participants’ knowledge of shareholders’ agreements and other legal documentation.

¾ Privileged invitation to relevant events across Europe and worldwide Thanks to our partners, EBAN members participated at preferential conditions in events for angels or intermediaries such as: o The Angel Capital Association (ACA) on April 15-17 in Atlanta, USA o The Microsoft European Investor Summit on May 13th 2009 in Prague, Czech Republic o La Baule 7th Europe Investment Conference on June 3rd and 4th in La Baule, France o HiT Barcelona World Innovation Summit on June 17th to 19th in Barcelona, Spain o The British Business Angels Association (BBAA) annual meeting on July 8th & 9th in Birmingham, UK o The 9th Med Tech Investing Europe Conference on October 5th and 6th in London, UK

EBAN has recently signed a new partnership with ETT - The European Tech Tour Association, an independent, not-for-profit organization composed of key contributors to the high-technology industry, which main goal is to promote European entrepreneurship. EBAN members can now participate at privileged conditions or be sourced as members of the jury in ETT events: two regional tours per year

European Business Angel Network - Activity Report 2009 to identify the best emerging companies in a geographic region, and two vertical industry events to capture the most innovative European companies in a specific industry segment such as Cloud & ICT 2.0, Cleantech, Medtech and Web & Mobility.

¾ Source experts for trainings

As a repository of good practice and network of professionals in early stage investing, EBAN receives several requests every year to source EBAN members as experts for trainings or speaking engagements across Europe and beyond.

The following experts participated in the MersinBAN Project Final Conference in Mersin, Turkey on November 20th 2009: o Philippe Tellwright, SWAIN - South West Angel and Investor Network (UK) presenting “Everyday Management of a Business Angels Network” (The Matchmaking process and its implementations, Add on Services of a BANs, Deal closing details) o Juliana Garaizar, Sophia Business Angels (FR) presenting “Some insights on BAN management and experiences of regional networks” as well as “The Business Angel Experience”.

Paul Delahunty from Finance South East (UK) was also present and presented ‘More Business angel networks in the European market” and “How to set up a regional BAN”.

The aim of the project and conference was to establish a business angel network in the region of Mersin. The project has been implemented with the collaboration of European and Turkish Chambers, starting with MCCI (Mersin Chamber of Commerce and Industry) as the first practice (pilot model) of Turkey, to facilitate the BAN system within a Turkish Chamber, as an alternative source of finance for entrepreneurs with innovative ideas, in order to develop the competitiveness of the regional economy.

Other expert engagements are reported in the detailed list of speaking engagements by EBAN board members above.

¾ Study Visit to Silicon Valley California (US) / May 18-21 2009

This event was organized by EBAN with the collaboration and support of Burton Lee from the Stanford School of Engineering and Space Angels, Marianne Hudson, from the Angel capital Association, Frank Peters, Chairman Emeritus of Tech Coast Angels and host of the Frank Peters Show, Sharon Vosmek and Evie Mulberry, from ASTIA, and Claire O’Halloran, from Microsoft.

A delegation made of 11 angel groups and early stage fund leaders from 5 countries took part in the visit. Delegates met with leading angel groups and early stage VC fund representatives, corporate tech-transfer/commercialization representatives, etc. The overall tour and delegation was lead by

European Business Angel Network - Activity Report 2009

Claire Munck, Managing Director of EBAN, in close cooperation with Burton Lee, Director of the European Entrepreneurship & Innovation Program at Stanford’s School of Engineering.

The delegation participated in the Europe-US Angel Investor Networks “Mini-Summit” US-Europe organized in the framework of the Entrepreneurship Thought Leader’s Seminar at Stanford’s University, the world's leading research and teaching institution located between San Francisco and San Jose in the heart of Silicon Valley (http://www.europeanentrepreneursatstanford.com/).

Meetings were organised with the following: -Frank Peters, Past Chairman Tech Coast Angels and The Frank Peters Show www.techcoastangels.com -Stefan Heuser, Siemens TTB http://www.ttb.siemens.com/en/index.asp -Phil Wickam, Managing Director of the Kauffman Centre for Venture Education http://www.kauffmanfellows.org/s/267/home.aspx -Bill Reichert, Managing Director of Garage Technology Ventures http://www.garage.com -Ian Sobiewski from Band of Angels http://www.bandangels.com -Alex Fries, Founder of Euro-American Angels and partner, EcoSystem ventures http://www.ecosystemventures.com -Ram Srinivasan, Wellington Partners pan-European early stage fund http://www.wellington- partners.com/wp/index.html -Sharon Vosmek, CEO of Astia www.astia.org -Jim Connor, Sand Hill Angels http://www.sandhillangels.com/ -Jo Ann Miller, Golden Seeds (Women angel group) http://www.goldenseeds.com/home/ -Allan May, Life Science Angels http://www.lifescienceangels.com/ -Gerd Goette, Siemens Ventures https://finance.siemens.com/financialservices/venturecapital/Pages/Venture_Capital.aspx -Microsoft including Dan’l Lewin, Corporate Vice President, Strategic and Emerging Business -Meeting with Mr. Shobeiri from P.A.P.A (Angel group of Plug&Play)

Participants joined a Dinner hosted by Stanford School of Mechanical Engineering at the Plug and Play Tech Center in Sunnyvale, with the presence of various organizations and companies such as Microsoft, Enterprise Ireland, Guidewire Group, and other angel and VC representatives. A visit to the Plug and Play incubator center and the Ten Incubator were also organised.

European Business Angel Network - Activity Report 2009

The EBAN tour visits ASTIA at Silicon Valley Bank on Sand Hill Road.

Some of the observations made by participants and presenters were as follows: ‐ Many European networks have similar business models and are more professionalized than- American angel groups that are largely volunteer-led ‐ Although the Silicon Valley “financial ecosystem” is not as integrated as one would think, there seems to be better connectivity and respect between the different investment communities than in Europe (in particular angels and VC funds). Several angel groups incorporate VCs as either sponsors or members. VCs have come to realise the value added brought by angels in terms of quality of the deal flow. ‐ The US may not have such a high technology advantage compared to Europe however it is much better at marketing new technologies and bringing business to market ‐ The economic crisis has hit more severely the American angel market than it has the European. US angels are keeping their money in their pocket, funding is scarce. ‐ European entrepreneurs need to be more realistic and pragmatic about valuations, as they have not come down enough yet. Comparable deals in the US are currently better valued. “Flat” round is the new “up” round. ‐ Focus on capital efficiency and starting small companies, proving the business model before accelerating the growth of the company. Nobody gets funding for ideas scribbled on napkin anymore!

This study visit was a first attempt by the EBAN Secretariat to answer a desire expressed by some of its members to organize study visits in various interesting ecosystems around the worlds, which would also reinforce the connections between the participants to the visit.

European Business Angel Network - Activity Report 2009

¾ Increased synergies with the international business angel scene

EBAN has continued to host the Secretariat for the WBAA - The World Association of Business Angel Group Leaders in 2009. WBAA’s mission is “to stimulate the exchange of knowledge and practices about the importance of angel capital financing for high growth and innovative start-ups at the international level”. EBAN supported the organisation of a meeting for Charter members in Dubai in April 2009 and the first WBAA global event in Beijing in December 2009. In coordination with CBAA (China Business Angels Association) and The Western Returned Scholars Association, host of the event, WBAA organized the first major global conference for business angel networks leaders in Beijing between 5th and 8th December 2009. The main objective of the event was to support the creation of an ecosystem for angel investing China, and provide opportunities for cross border collaboration. The event saw the participation of business angel investors and representatives from federations and networks from over 20 countries, including UK, US, Australia, New Zealand, South America and continental Europe. A press release of the event can be found on the WBAA website www.wbaa.biz

. Overseas guests attending the opening of the Eighth Overseas Investment Strategy Forum at the Great Hall of the People in Beijing on December 6th 2009.

European Business Angel Network - Activity Report 2009 6. Summary of member services in 2009

Category of service Description Communication Monthly Flash New website – member only section Exchange of experience Annual Congress Winter University Study Visit (Silicon Valley) Publications and research Statistics Compendium and Directory of Networks Fiscal incentives and co-investment Funds Policy Statement on the impact of the financial crisis Privileged collaboration agreements Angel Capital Association European Tech Tour Medtech investing Europe Promoting the importance of BA, BAN Representation (speaking engagements) at events and early stage investors and the key Collaboration with key networks: role of EBAN ACA - Angel Capital Association NACO - Canadian National Capital Association AANZ - Angel Association New Zealand AAAI - Australian Association of Angel Investors NASVF – American National Association of Seed and Venture Funds CEED - Centre for Entrepreneurship and Executive Development EBN – European BIC Network INSME – International network for SMEs ANIMA – Investment Network for the Mediterranean Region EVCA – European Venture Capital Association EFMD – Foundation for Management Development EEN – Europe Enterprise Network Internationalisation of the angel WBAA Secretariat movement European projects Ready for Equity 2 Fostering a dialogue with the Participation in expert workshops European Administration Ad-hoc meetings with several Directorate Generals Others Replies to funding requests from start-ups

European Business Angel Network - Activity Report 2009 EBAN European Sponsors

EBAN would like to warmly thank its sponsors for their support to the work of our association.

EBAN Gold Sponsors

EBAN is currently working in partnership with Microsoft in order to promote their BizSpark programme targeted to early stage software start-ups and to help them to access early stage financing. More information is available on http://www.microsoftstartupzone.com/BizSpark/Pages/At_a_Glance.aspx as well as on the EBAN website in our section “Partnerships”.

The European Space Agency (ESA), represented by its Technology Transfer Programme Office (TTPO) and EBAN have established a three-year strategic partnership starting January 2010. This partnership wants to bring to the attention of European business angels and early stage investors the opportunities of innovation originally funded by space programmes. With ESA, EBAN members will benefit from extensive knowledge on space related market trends and experience in the field of financing space technologies. Read the press release here. More about ESA´s Technology Transfer Programme Office (TTPO) can be found on http://www.esa.int/SPECIALS/TTP2/

EBAN Research Sponsor

EBAN and BDO will collaborate in the coming years in order to produce an annual report regarding two of the most important incentives stimulating business angel activity: - Fiscal incentives - Co-investment funds.

For more information about BDO, please visit: http://www.bdointernational.com/

European Business Angel Network - Activity Report 2009 Extending our reach

EBAN collaborates with the following associations around the world, in an effort to cross-fertilise knowledge and innovation across borders for the benefit of its members.

International Partnerships Associations of Business Angels Groups, Seed Funds and other Early Stage Investors

The Angel Capital Association (ACA) is North America's professional alliance of angel groups. This fast-growing association brings together many of the 330 angel organizations

in the United States and Canada to share best practices, network, and help develop data about the field of angel investing. http://www.angelcapitalassociation.org/

The Australian Association of Angel Investors (AAAI) promotes a vibrant Angel community and culture in Australia through the promulgation of best practice, fostering the development of Angel Investor groups, providing continuing education for Angel Investors, nurturing international relationships with the global community of Angel Investors and representing its members through policy advocacy and collaborative initiatives with Australian governments to encourage and develop an efficient and effective risk capital market in Australia. http://www.aaai.net.au/

The National Angel Capital Organisation (NACO) promotes a vibrant Angel community and culture in Canada through the development of formal Angel investor groups, best practices

education and mentoring programs, and the formation of collaboration and co-investment mechanisms to encourage an efficient risk capital market in Canada. http://www.angelinvestor.ca/

The Angel Association New Zealand is an organisation that aims to increase the quantity, quality and success of angel investments in New Zealand and in doing so create a greater pool of capital for innovative start-up companies. http://www.angelassociation.co.nz/

European Business Angel Network - Activity Report 2009

The American National Association of Seed and Venture Funds (NASVF) is an organization of innovation capital leaders: private, public and non-profit organizations committed to building their

local economies by investing in local entrepreneurs. http://www.nasvf.org/

European Partnerships

The European Business & Innovation Centre Network (EBN) is the leading non-governmental pan-European network bringing together 200+ Business and Innovation Centres (BICs) and

similar organisations such as incubators, innovation and entrepreneurship centres across the enlarged Europe. http://www.ebn.be/

The European Venture Capital Association (EVCA) continuously monitors research conducted by third parties, to enhance the provision of up-to-date information on various market segments and regions. http://www.evca.eu/

The Enterprise Europe Network (EEN) offers support and advice to businesses across Europe and helps them make the most of the opportunities in the European Union. The services are

specifically designed for small and medium enterprises (SMEs) but are also available to all businesses, research centres and Universities across Europe. http://www.enterprise-europe- network.ec.europa.eu/index_en.htm

ANIMA Investment Network is a multi-country platform supporting the economic development of the Mediterranean. The network gathers around 40 governmental agencies and international networks. The objective of ANIMA is to contribute to a better investment and business climate and to the growth of capital flows into the Mediterranean region. http://www.animaweb.org/

European Business Angel Network - Activity Report 2009

The European Tech Tour Association (ETT) is an independent, not-for-profit organization composed of key contributors to the high-technology industry, founded in Geneva in 1998. Its goal is to promote European entrepreneurship and provide a platform, in the form of events, for entrepreneurs and investors to meet, ideally leading to funding or facilitation of high technology companies looking to expand internationally. The Association organizes two regional tours per year to identify the best emerging companies in a geographic region, as well as two vertical industry events to capture the most innovative European companies in a specific industry segment such as Cloud & ICT 2.0, Cleantech, Medtech and Web & Mobility. http://www.techtour.com/

Global Partnerships

The International Network for Small and Medium Sized Enterprises (INSME) is a non profit Association open to international membership. Its mission is to stimulate transnational cooperation and public and private partnership in the field of innovation and technology transfer to SMEs.

http://www.insme.org/page.asp

The Centre for Entrepreneurship and Executive Development (CEED) supports entrepreneurs by providing know-how and networks they need to accelerate the growth of their businesses and to promote an entrepreneurial culture in the broader society. http://www.ceed-global.org/web/default.aspx

The European Entrepreneurship and Innovation Thought Leaders Seminar (EEITL) is a weekly lecture series on entrepreneurship and technology innovation as practiced in Europe — and by Europeans in Silicon Valley — co-sponsored by the Department of Mechanical Engineering and our European

Government Partners. The seminar and is affiliated with the Stanford Technology Ventures Program. http://www.europeanentrepreneursatstanford.com/

European Business Angel Network - Activity Report 2009

The European Foundation for Management Development (EFMD) is an international membership organization, based in Brussels, Belgium. With more than 700 member organizations from academia, business, public service and consultancy in 82 countries, EFMD provides a unique forum for information, research, networking and debate on innovation and best practice in management development. http://www.efmd.org/

Media partners

Science|Business is the first independent news service that brings together buyers and sellers of emerging technologies - through its online news coverage, its subscriber-posting service, and its exclusive networking events. It does so with a top-quality news team, and a unique network of Europe's leading scientific institutions. http://www.sciencebusiness.net/index.php

The Frank Peters Show is a radio show about start-up stories in

angel investing and venture capital.

http://www.thefrankpetersshow.com/

AngelNews is a commercial news service for the investment

market, especially for business angels, venture capitalists and

the companies they back.

http://www.angelnews.co.uk/

Real Deals covers stories about private equity in Europe.

http://www.realdeals.eu.com/

Informilo is a news site that covers tech sector developments in Europe, the Middle East, Africa, Asia Pacific and the Americas. The site covers entrepreneurship and innovation in every part of the pipeline – from the smallest start-up with the best idea to big companies that embrace creative disruption. The aim is to help start-ups and venture capitalists benchmark the global competition and connect with big corporates. http://www.informilo.com/