CO-INVESTMENT 2018 COMPENDIUM TABLE OF CONTENTS Table of contents .................................................................................................. 1 List of tables .......................................................................................................... 5 List of figures ........................................................................................................ 6 Abbreviations ........................................................................................................ 7 Disclaimer .............................................................................................................. 8 Copyright ............................................................................................................... 9 Foreword ............................................................................................................. 10 Executive Summary ............................................................................................ 11 1 INTRODUCTION ............................................................................................... 12 1.1 Goals and contents ................................................................................... 12 1.2 Methodology .............................................................................................. 12 1.3 Opportunities ............................................................................................. 12 2 TYPES, ROLE AND IMPORTANCE OF BUSINESS ANGEL CO- INVESTING.............................................................................................................. 13 2.1 Definition of angel co-investment funds .................................................. 13 2.2 Business angels value chain .................................................................... 13 2.3 Public-private partnerships and their importance ................................... 14 2.4 Structural funds and business angels ..................................................... 16 2.4.1 European Structural and Investment Funds (ESIF) ............................................ 16 2.4.2 Cohesion policy and ESIF 2014-2020 ................................................................. 16 Financial instruments .................................................................................................................. 17 FI –compass ................................................................................................................................. 18 2.4.3 Learning from the past: the JEREMIE initiative under ERDF 2007-2013 ........... 18 2.5 Private-private partnerships and their importance ................................. 19 2.5.1 Business angel networks (BANs) ........................................................................ 20 2.5.2 Business angel syndicates .................................................................................. 21 2.5.3 Sponsors .............................................................................................................. 22 2.5.4 Investment readiness and capacity ..................................................................... 22 2.5.5 Main benefits of co-investment funds .................................................................. 23 3 BEST PRACTICES AND FAQS ON HOW TO SET UP A CO- INVESTMENT FUND ............................................................................................... 24 3.1 How to set up and run a business angel co-investment scheme? ......... 24 3.2 Business angel co-investment scheme step-by-step ............................. 25 3.3 Most important things in raising a co-investment fund .......................... 27 3.4 FAQs ........................................................................................................... 30 3.4.1 Major questions asked by institutional investors? ............................................... 30 3.4.2 How to deal with family offices? .......................................................................... 30 3.4.3 How to deal with corporates? .............................................................................. 30 3.5 Impacts and Challenges ............................................................................ 30 3.5.1 Impact of co-investment fund support to business angel activity ........................ 30 3.5.2 Challenges identified by current managers of co-investment and business angel funds 30 Establishing ................................................................................................................................. 30 Funding ....................................................................................................................................... 31 Investing - finding the right deals to invest in ............................................................................. 31 Follow-on support ....................................................................................................................... 31 Returns ........................................................................................................................................ 32 4 CO-INVESTMENT ANGEL FUNDS IDENTIFIED IN EUROPE ........................ 33 4.1 European Angels Fund (EAF) ................................................................... 33 4.2 JEREMIE ..................................................................................................... 34 4.3 Netherlands Enterprise Agency ................................................................ 36 4.4 META Investment INGENIUM Funds ........................................................ 37 4.5 META Investment Angel Fund .................................................................. 38 4.5.1 List of co-investment angel funds ........................................................................ 38 5 CASE STUDIES ................................................................................................ 46 5.1 Austria ........................................................................................................ 46 5.1.1 Aws Business Angel Fonds ................................................................................. 46 1 5.2 Belgium ...................................................................................................... 47 5.2.1 Ark Angels Activator Fund ................................................................................... 47 5.2.2 Nausicaa Ventures .............................................................................................. 47 5.2.3 SIBAs (Structure d’Investissement avec des Business Angels) – Investment structures with BAs ............................................................................................................. 47 5.3 Bulgaria ...................................................................................................... 48 5.4 Czech Republic .......................................................................................... 49 5.5 Denmark ..................................................................................................... 49 5.5.1 Danish Business Angel Matching Fond ............................................................... 49 5.6 Estonia ....................................................................................................... 50 5.6.1 Estonian Business Angels Co-Investment Fund ................................................. 50 5.6.2 SmartCAP ............................................................................................................ 50 5.7 Finland ........................................................................................................ 50 5.7.1 EAF Finland ......................................................................................................... 50 5.7.2 Finnish Industry Investments (TESI) ................................................................... 51 5.7.3 Finnvera Venture Capital ..................................................................................... 51 5.7.4 Innovestor Ventures ............................................................................................. 52 5.7.5 Tekes Venture Capital ......................................................................................... 52 5.8 France ......................................................................................................... 53 5.8.1 Alsace Business Angels organized as ABA Invest 1 and 2 ................................. 53 5.8.2 Angel Source ....................................................................................................... 53 5.8.3 Aqui-Invest ........................................................................................................... 54 5.8.4 Capital Provence Business Angels ...................................................................... 55 5.8.5 Croissance Europe .............................................................................................. 56 5.8.6 Grenoble Angels .................................................................................................. 56 5.8.7 Innovation Europe ................................................................................................ 56 5.8.8 PACA Investissement - France............................................................................ 57 5.8.9 Paris Business Angels, Paris Angels Capital & the collaboration with several angel funds ........................................................................................................................