wbaforum.org

WBAFWORLD BUSINESS ANGELS

INVESTMENT FORUM

CHAIRMAN’S STATEMENT

As a global organisation, the World Business Angels Investment Forum is bringing together key players of the equity markets to discuss the benefits and challenges of achieving successful growth for businesses and to explore additional possibilities for empowering the world economy.

In the wake of the global economic crisis, it was far from easy to reach out for any kind of finance, smart or otherwise. The World Business Angels Investment Forum focuses on developing innovative financial instruments for entrepreneurs, scaleups and SMEs as a part of its global agenda.

To focus on the ‘smart’ factor in innovation in the context of entrepreneurial ecosystems, the World Business Angels Investment Forum directs its attention to developing smart investors, smart finance, smart exits, and smart entrepreneurs, startups and SMEs.

By working together across borders, with a common vision, and with these smart dynamics in mind, we are well placed to bring about positive change in the global economy.

As the Chair of the World Business Angels Investment Forum, I invite you to join our global efforts to ease access to smart finance to create more jobs and more social justice worldwide. Your efforts to convert the world economy to a smart economy in cooperation with the World Business Angels Investment Forum will be highly valued.

Yours sincerely,

BAYBARS ALTUNTASChair, World Business Angels Investment Forum

What is ‘the best finance’ for startups, scaleups, entrepreneurs,SMEs and angel investors?

The World Business Angels Investment Forum is committed to empower the economic development of the world by fostering innovative financial instruments for SMEs, innovators and startups, invites you to join our global efforts to ease access to finance for them to create more jobs and social justice for the world economy.

SMART FINANCE & INVESTORS

BEYOND FINANCIAL ECOSYSTEMS

We help ensure that policymakers, entrepreneurs, scaleups and SMEs fully appreciate the importance of smart finance, which can be provided only by angel investors.

SMART EXIT STRATEGIES

WE FOCUS ON THE LONG TERM

An increase in the number of new businessideas is closely related to exit opportunities..

SMART ENTREPRENEURS,SCALEUPS, SMEs

IDENTIFYING THE RIGHT ENTREPRENEUR, SCALEUP OR SME

Identifying the right entrepreneur, scaleups or SME is crucial for any investor. On the other side of the coin, it is also crucial for entrepreneurs, scaleups and SMEs to receive investment from the right team of investors.

The World Business Angels Investment Forum (WBAF) is an international organisation aiming to ease access to finance for businesses from start up to scale up to exit.

THE WORLD BUSINESS ANGELS INVESTMENT FORUM (WBAF) IS AN INTERNATIONAL ORGANISATION AIMING TO EASE ACCESS TO FINANCE FOR BUSINESSES FROM START UP TO SCALE UP TO EXIT.

SMART FINANCE OPPURTUNITIESThe Forum interacts with leaders in all areas of society

WBAF MISSIONThe World Business Angels Investment Forum (WBAF) is an international organisation aiming to ease access to finance for businesses from start up to scale up, with the ultimate goal of generating more jobs and more social justice worldwide. It is committed to collaborating globally to empower world economic development by creating innovative financial instruments for innovators, startups, and SMEs.

The Forum interacts with leaders in all areas of society, first and foremost in business and political spheres, to help assess needs and establish goals, bearing in mind that the public interest is of paramount importance. We engage a wide range of institutions, both public and private, local and international, commercial and academic to help shape the global agenda.

We hold that, with the participation of individuals and institutions from all parts of society, real progress can be achieved.

HOW WE DIFFERENTIATE OURSELVESAs a global organisation, the WBAF is unique in its focus on a ‘smart’ approach to transforming the world’s economy to a smart economy — one that we believe will produce more jobs and more social justice.

The Forum provides an open environment where key players from equity markets around the world can freely discuss the challenges businesses face in achieving growth and explore ways to empower the world economy.

The Forum is also unique in its focus on dynamics, all of which embed the smart concept for scaleups.

ABOUT WBAF

The Forum schedules four meetings per year. Annual Conference, Strategic Planning Meeting, Global Collaborations Summit, Excellence Awards & VIP Gala Dinner. An Annual Conference, held every February works to shape global, regional and industry agendas. A Strategic Planning Meeting is held in October or November each year to identify a specific area of focus for the coming year. In addition to these events, the WBAF offers workshops, seminars, and special meetings on subjects of relevance to its global agenda and in line with emerging needs.

CONVERTING PUBLIC MONEY TO SMART MONEY

The WBAF draws the attention of policymakers to the risks posed by financing entrepreneurs, startups, scaleups and SMEs. If finance is not backed up by know-how, mentorship and good networking, an investment can easily lead to the border of the proverbial valley of death.

The WBAF therefore invites governments and policymakers to develop strong angel investment schemes to be used alongside public support for entrepreneurs, startups and SMEs.

Policymakers should also develop smart policies to convert public money to smart money in cooperation with qualified angel investors.

By working together across borders, with a common vision, and with these smart dynamics in mind, we are well placed to bring about positive change in the global economy.

SME SCORINGAnother specific area of interest of the WBAF isSME scoring. The WBAF sees the benefit to the world economy of a well-developed SME scoring system. We believe that such a system will accelerate the investment process and that investors will facilitate finding suitable entrepreneurs, startups, scaleups and SMEs to invest in. The WBAF is ready to cooperate on initiatives and action plans to develop a valid, objective and reliable SME scoring system that can be applied globally.

SME Scoring

GLOBALCOLLABORATIONS SUMMITEvery May

A Global Collaborations Summit aiming to share knowledge and insights on the most pressing global issues impacting investment markets and related areas is held every year in a different country.

EXCELLENCE AWARDS & VIP GALA DINNEREvery February

A VIP Gala Dinner, held every February brings together the best angel investors of the world to salute the winners of the World Excellence Awards.

Why our work is important? The 2008 global economic crisis produced an economic environment that resulted in unprecedented challenges for entrepreneurs, startups and SMEs seeking access to finance. It was clear that an entirely different way of working was required, a new approach to solving qualitatively different problems. The WBAF provides an international platform where all stakeholders can join forces to drive change, with a particular focus on linking the best entrepreneurs, startups, scaleups and SMEs with smart finance opportunities afforded by qualified angel investors and institutions that work in cooperation with angel investors. In addition to conferences, talks, meetings, and debates, the WBAF gives importance to taking concrete steps that fuel the growth of the world entrepreneurial ecosystem.

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4WHAT WE DO

The World Business Angels Investment Fund

The WBAF is in the process of establishing this special investment fund with the participation of members and partners of the World

Business Angels Investment Forum, with the aim of providing financing for scaleups who raised angel investor before and SMEs.

In addition to conferences, talks, meetings, and debates, the WBAF gives importance to taking concrete steps that fuel the growth of the world entrepreneurial ecosystem.

WHAT WE DO

Global CEO Alliance Club

The GCAC brings together brings together the best corporate CEOs to increase their awareness about angel

investing and to give them an opportunity to invest jointly with qualified angel investors.

Excellence AwardsWith its Excellence Awards, the World Business Angels Investment Forum looks beyond borders. It seeks to promote and nurture start-ups, angels, and a dynamic business community throughout the world. From business angels to policymakers to academics, the Awards salute those who stand out in imagining, discussing, and shaping the future of an entrepreneurial World.

Exclusive Investment EventsThe Forum organizes exclusive investment events where members, investors and executives of the World Business Angels Investment Fund meet with the best high-growth companies, scaleups,and SMEs for investment purposes. These investment forums are organised either independently or in

conjunction with the WBAF Annual Conference or the Global Collaborations Summit.

Investment Academy

The WBAF Investment Academy serves not just business angels; all types of stakeholders are welcomed, ranging from entrepreneurs and SMEs to banks and stock exchanges to incubation and acceleration centres. The ultimate goal is to contribute to the development of skills and expertise and to foster the kind of creative thinking that leads to innovation and eventual success in the ever-changing market environment of the 21st century.

OUR MEMBERS AND PARTNERSThe World Business Angels Investment Forum is a membership organization. Our members comprise the world’s top corporations, global enterprises, NGOs, angel investment networks, stock exchanges, chambers of commerce and industry, technoparks, incubation and acceleration centres, VCs, SME agencies, regional development agencies, crowdfunding platforms, governmentalinstitutes - who all share a common goal: Shaping the future of the early stage investment markets and easing access to finance for entrepreneurs, startups, scaleups, SMEs.

These enterprises play a leading role in shaping the future of their industry and region. Some of our members join the Forum’s Strategic and Industry Partnership communities, which are designed to deepen their engagement with the Forum’s events, project and initiatives.We focus on key strategic challenges, including filling equity gaps, encouraging stock exchanges to create more liquidity, involving chambers of commerce and industry to increase the number of angel investors, encouraging corporations to set up their own corporate ventures, fostering cross-borderinvestments,

Our approach to key challengesEntrepreneurs are expected to produce a demo in order to seek funds from angel investors and others, but they often lack the financial capacity to develop the demo. With this in mind, we need a solution to fill the equity gap at the seed level. We invite seed funders, crowdfunders and public support groups tocooperate to fill this gap. This equity gap is generallyup to $50,000.

Startups who receive angel investment face a finance challenge at scale up. If, for instance, they need to raise more than $1 million , the possibility of raising that amount from angel investors is slim because angel investors are not keen to invest over $1 million.Yet VCs generally do not invest below $5 million. This is the second equity gap. We encourage the creation ofco-investments between angel investors, VCs,corporate ventures and public funds to fill this gap.Stock exchanges should open their doors to scale ups and develop innovative solutions for scaleups and SMEs who seek funding.

and fostering entrepreneurial ecosystems by providing innovative and workable solutions, with contributions of our Gold Members, Full Members, Honorary Members and Observers Members from around the World.

5Global Ecosystem Partners, selected from among the members of the World Business Angels Investment Forum, are actively engaged in carrying out the Forum’s mission at the investment level. Their Partner status affords them privileged access to multi-stakeholder networks of the Forum and its experts, providing visibility and strategic insights into the decision-making processes related to some of the most significant cross-border investment issues. This allows Global Ecosystem Partners to contribute to positive change and to engage in initiatives that support corporate global citizenship.

3Like the GlobalEcosystem Partners, Regional Partners come from members of the World Business AngelsInvestment Forum. RegionalPartners represent businesses with a strong regional presence or a strategic interest in a particular region, each committed topromoting economic and social development at various levels. As with the Global Ecosystem Partners, access to the Forum’s multi-stakeholder network andexperts provides visibility and offers insights into strategicdecision-making on important regional issues.

4Comprised of some of the world’s finest companies representing diverse regions and industries, Strategic Partners are committed to the idea that interaction between multiple stakeholders can be a positive force in creating change. They work in close cooperation with the Forum to help shape regional and global agendas in the global and regional investmentmarkets.

4As members of the World Business Angels Investment Forum, Collaborative Partners are active at regional and global levels, working to develop insights which will inform strategicdecision-making on issues that are critical to their own industry and to cross-border investments.Interaction with the Forum’s area experts and various networks drives positive change andsupports efforts toward corporate global citizenship.

4institutional Members, at the core of all Forum activities, cooperate to find sustainable solutions to global issues. They are typically top-rated high profile global enterprises that play a leading role in their industry and their particular region.

STRATEGIC PARTNERS

REGIONAL PARTNERS GLOBAL ECOSYSTEM PARTNERS

INSTITUTIONAL MEMBERS

COLLABORATIVEPARTNERS

3The Forum Members community comprises well-established influential businesses that contribute to the development of their industry and the growth of their regional economies. Including top global innovators and disruptors and ranging from niche market leaders to regional champions, these companiescollaborate to address key issues, identify emerging trends and further theForum’s mission of easing access to finance globally.

FORUM MEMBERS

WHAT DOES OECD SAY ABOUT ANGEL INVESTMENT?

While venture capital trends to attract the bulk of the attention from policy makers, the primary source of external seed and early-stage equity financing in many countries is angel financing not venture capital.

In some countries, policies to encourage a greater number of angel investors seem to have played a role. These include supply-side measures such as tax incentives and the creation of co-investment funds. Tax incentive progranunes have aimed to increase the number of angel investors as well as to adress tax asymmetries in profit and losses. Countries such as the United Kingdom with long standing angel tax incentive progranunes cite the impact the programmes have had on increasing angel investment activity which in turn creates jobs and economic growth. (OECD, Financing High Growth Firms and The Role of Angel Investors)

MALE & FEMALEANGEL INVESTORS

The angel investment market size is more than 6 billion Euro in Europe (EBAN2015) and more than 25 billion USD in the US and Canada (ACA2015). The total size of the world’s early-stage investment market is expected to exceed 50 billion dollars in 2020.

WORLD STATS &NUMBERS

PROVIDERS OF EQUITY CAPITAL IN THE EARLY STAGES OF FIRMS’ LIVESAngel investors have an important role to play asproviders of equity capital in the early stages offirms’ lives, and hence for the success of theentrepreneurial economy. The central role ofbusiness angels is increasingly recognised bypolicy makers. (OECD, 2015a)

ANGEL INVESTORS OFTEN OPERATE IN NETWORKS

25% +2458

ONLINE BUSINESSES

IT & MOBILE TECHNOLOGIES

In contrast to both venture capital investmentsand bank credit, business angel investmentsheld up relatively well in the aftermath ofthe 2008-09 financial crisis and have gainedfurther traction in recent years in many countries.In the United States, survey data suggest thatthere has been an increase of angel activitiessince 2012 when the JOBS act (Jumpstart OurBusiness Startups Act) was signed into law,reaching a total estimated size of USD 24.1billion in 2014

(Financing SMEs and Entrepreneurs 2016 - An OECD Scoreboard, The Role of Business Angel Investments in SME Finance).

Business angels often operate in networks, private or semi-public organisations, which are usually active atthe regional or nationallevel. These networks

function primarily as a matchmaking service between investors and entrepreneurs. The addressinformation asymmetries between investors andentrepreneurs by enhancing the flow of information(financing smes and entrepreneurs 2016 - an oecd scoreboard, the role of business angel investments in sme finance).

ANGEL INVESTORS & CORPORATE VENTURESAngel investment is booming worldwide. More than 90% of the early-stage investments in Europe come from angel investor capital. The angel investment market size is more than 6 billion Euro in Europe ( EBAN2015) and more than 25 billion USD in the US and Canada (ACA2015). The total size of the world’s early-stage investment market is expected to exceed 50 billion dollars in 2020. WBAF2016 initiated critical discussions on the concept of an early-stage investment economy where the focus is on early exit strategies from businesses funded by angel investors at the start-up and scale-up stages. A recent empirical study has examined the degree to which European CVC firms emphasize on strategic and financial objectives. Results show that 54% of European parent firms invest primarily for strategic reasons, yet with financial concerns, 33% invest primarily for financial reasons with strategic concerns and 13% invest purely financial. In fact, 50% of US parent firms invest primarily strategic with financial concerns, 20% financial with strategic concerns, 15% purely financial and 15% purely strategic. As a rule, corporate ventures, whether European or American, invest primarily for strategic reasons.

The World Business Angels Investment Forum explores ways to create more liquidity for startups, scaleups and SMEs and to develop better scale-up and exit strategies by forging strong partnerships with corporate ventures.

STOCK EXCHANGES

as leveraging bodies to increase the exits

CHAMBERS OF COMMERCE & INDUSTRIES

as leveraging bodies to increase the number of

business angels

SME AGENCIES

as leveraging bodies to make more angel investor and startup friendly policies

A B C

Empowering the global collaborations to ease access to finance

FOSTERING VARIOUS FORMS, INCLUDING BUSINESSANGEL–PUBLIC FUNDS, PUBLICFUND–EIF, ANGEL SYNDICATION,VC–ANGELS, VC–PUBLIC FUND–ANGELS.

The World Business Angels Investment Forum explores effective strategies for using the corporations, chambers of commerce andindustries, stock exchanges, innovation centers, technology parks,incubation centers, acceleration centers, banks and SME agencies as a body to leverage the efficiency of innovation in the world byconverting their idle capacities into platforms where investors can find secure environments for investing in startups, scaleups,entrepreneurs and

FUTURE STRATEGIES

SMEs. The WBAF provides a roadmap forcreating aninnovation pipeline that willconnect open innovation,research and development and corporate venturing by usingcorporations, chambers of commerce and industries,

stockexchanges, innovation centers, technology parks, incubation centers, acceleration centers, banks and SME agencies as leading platforms of the local early stage investment markets.

CREATING A PRIVATE MARKET FOR ANGEL INVESTORS

WHERE INVESTORS CAN FIND A SECUREENVIRONMENT TO INVEST

CREATING A PRIVATE MARKET FOR BUSINESS ANGELS, STARTUPS, SCALEUPS AND SMES ONA STOCK EXCHANGE

EFFECTIVE STRATEGIES ARE PRESENTED

for using the stock exchanges as a leveraging body to increase the market size ofthe world’s early-stage investment by converting stock exchanges intoplatforms where foreigninvestors can find a secureenvironment to invest instartups, scaleups and SMEs.

Effective strategies will be presented for using a stock exchange as a leveraging body to increase the marketsize of the world’s early-stage investmentby converting the stock exchange into aplatform where foreigninvestors can find a secure environment toinvest in startups, scaleups and SMEs.The World BusinessAngels Investment Forum leads creating an awareness about

STOCK EXCHANGES

why today’s stockexchanges should givemore importance to scaleups, SMEs andentrepreneurs than ever before, howprivate markets can serve the needs of SMEs andentrepreneurs,whether there is a need for the SEC of a country to secure the private market and how this market can be used to list global angel investors and leverage the size of theearly-stage investment market by attracting foreign investors.

PROVIDING THE OPPORTUNITY FOR BUSINESS LEADERS

PROVIDING THE OPPORTUNITY FOR BUSINESS LEADERS OFCHAMBERS OF COMMERCE & INDUSTRY TO BECOMEANGEL INVESTORS

TRANSFORMING CHAMBERS OF COMMERCE INTOACCESS-TO- FINANCECENTRES FOR ENTREPRENEURS, STARTUPS, SCALEUPS AND SMES.

NATURAL PARTNERS FOR BUSINESS ANGELS

Chambers of commerce andindustry are natural partners for business angels in bringing economicdevelopment to their communities. These chambers are oftenthe first stop for businesses and entrepreneurs lookingfor investors and business angels looking for ideas and innovators.

Chambers of commerce and industry are natural partners for businessangels in bringing economicdevelopment to their communities. Chambers are often the first stop for businesses and entrepreneurslooking for investors andbusiness angels looking forideas an innovators. They provide a valuable structureand convening power thatallow business angels to bringideas to life. The World

CHAMBERS OFCOMMERCE & INDUSTRY

Business Angels Investment forum presents a roadmapfor chambers of commerceand industry to create theirown angel networks and fundsfrom within their operation.Bringing different skills andresources to the table: Business angels provide detailed guidance and training on the entrepreneurial lifecycle andon how to access finance andcapital. Chambers provideguidance on the rules and regulations of doing business.

CONVERTING PUBLIC MONEY TO SMART MONEY

AS A MAIN MISSION OF SME AGENCIES IN EACH CITY, COUNTRY AND REGION

A STEP-BY-STEP COUNTRY MASTER PLAN TO CREATEAND DRIVE A HEALTHY EARLY-STAGE INVESTMENTMARKET FOR CITIES,COUNTRIES AND REGIONS

CREATING AND DRIVING HEALTY EARLY-STAGEINVESTMENTMARKETS

The World Business Angels Investment Forum proposes a step-by-step country plan to createand drive a healthyearly-stage investment market for cities, countries and regions.

96% of the world economy is driven by entrepreneurs, start-ups and SMEs.Thesesmall and medium-sizedenterprises are the maindrivers of economic stability. They recruit more than 60% of theentire working populationof the world. In order forthem to contribute moreto the economies of theircountries, they need quick access to new financialinstruments. Unfortunately, after the global economiccrisis, SMEs,

SME AGENCIES

entrepreneurs, and start-ups were unable toaccess finance as easilyas they had before.The development of newfinancial instruments such as crowd-funding, angel investment, acceleration programmes andco-investment funds, alongwith access to finance, therefore play a vital rolein economic development.

A NEW ROADMAP: FROM STARTUP TO ANGEL INVESTOR TO CORPORATE VENTURES

WHERE STARTUPS, SCALEUPS,SMES AND ANGEL INVESTORS WILL FIND EARLY EXIT OPPORTUNITIES IN THEIR OWN MARKET

THIS NEW ROADMAP LEVERAGES EARLY-STAGE INVESTMENT MARKETSBY POSITIONING CORPORATEVENTURES AS BRIDGES THAT CONNECT ANGEL INVESTORSAND STOCK EXCHANGES.

Companies want and needinnovation. The usual policy is tocreate an R&D department,

allocate a budget, and then inviteor otherwise encourage employeesto develop innovations for thecompany. The biggest challenge isto turn existing employees intointrapreneurs, but the differencein mindset makes it difficult for R&Ddepartments using this model tomeet the expectation of creating acompetitive advantage in globalmarkets. The World Business Angels Investment Forum proposes an innovative roadmap that calls forcorporations to invest in startups thathave already raised funds from angelinvestors. Companies should opentheir doors to startups and angelinvestor teams,who would then workin cooperation with the company’sR&D team. This new approach canleverage the market size of localeconomies. Angel investors will be

CORPORATE VENTURES

more willing to invest in startups, withconfidence of knowing they will haveaccess to further funding and/or earlyexit opportunities in the market.The collaboration between angelinvestors, startups, entrepreneurs,SMEs and corporate ventures willtherefore serve not only the goal ofcreating more innovation for the company, but it will also serve to leverage the early-stage investment markets and ultimately createmore jobs. Leveraging early-stageinvestment markets by positioningcorporate ventures as bridgesbetween angel investors and stock exchanges will also serve to easeaccess to finance, not just forstartups but for angel investorsas well in further investment rounds.

THE BENEFITS OF INCREASED INVOLVEMENT OF CORPORATE VENTURES IN EARLY-STAGEINVESTMENT MARKETS

The World Business Angels Investment Forum proposes a new roadmap for corporate ventures to increase the efficiency of R&D departments by cooperating with startups that have raised funds from angel investors.

JOIN OUR GLOBALEFFORTS We encourage you to join us in our efforts to harness the force of the world’s rapidly growing early-stage investment market.

Join our global efforts to ease access to smart finance to create more jobs and more social justice worldwide. Your efforts to convert the world economy to a smart economy in cooperation with the World Business Angels Investment Forum will be highly valued.

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