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Research & Identification of Good Practices Relating toBusiness Angel Market.
Martin CarrMilano 10th November 2010
Exemplas Ltd
My Background
• Employed by Exemplas – UK
• Operates various support programs for early stage and growing businesses.
• My role Finance/Strategic planning
• Operated: Business Angel Network
Investment Readiness Programs
• Founder Member EBAN – European Business Angels Network
BBBA – British Business Angels Association
• Was invited to join this program in view of experience last 12 years in UK.
The Macc Bam Project
• MACC BAM - Identify measures to accelerate the Mediterranean Business Angels market/ Share best practice
• Project runs April 2009 – March 2012
• Partners from: - Attiki region (Greece)
- Lombardy region (Italy)
- Provence Alpes Cote d Azur region (France)
- Rhone Alpes region (France)
- East England (England)
Project Theme
• Business Angels (informal investors) accepted as important role to play in developing entrepreneurs & wealth & job creation.
• Transfer and share best practices in Europe to the Mediterranean region.
• Reinforcement of Co Operation between partners that demonstrate proven experience in activities and establishment of B.A.N’s
Expected Impact
• Raise Awareness of Business Angels and B.A.N’S
• Promote public sector support for B.A.N’s
• Foster public participation In Co Investment Funds
• Test tools & practices such as Equity Guarantees, Investment Readiness Programs.
• Establish BAN support networks.(Support Managers)
• Implement & pilot strategic plan for development of B.A.N’s
Research Good Practices
• Conducted research through partners,
England, France, Greece, Italy, Europe, EBAN
• Each country conducted questionnaires to identify good practices and challenges.
• Challenges – Difficult sometimes to obtain information.
• Not all countries have national association networks.
France – Yes
Italy – Yes
UK – Yes
Greece – Not Yet – at early stage
Research Good Practices
• We obtained feed back from countries
• Task force meeting held UK Jan 2010 to discuss practices.
(reps from each country)
• After this meeting identified
- Challenges for BAN’S
- Good Practices
Programs & Challenges Facing Networks
• Financial Sustainability
• How to recruit good Angels.
• How to obtain quality dealflow.
Good Practices
• Important to exchange good practices between B.A.N
• Importance of training:
- For Investors
- For Entrepreneurs
• Investment forums (Bringing investors/investees together)
• National association that supports networks
• Creation of links with local, public players, universities, others working for new businesses creation.
Good Practices
• BAN manager lobbying public authorities in respect of importance of Angel Investing to help development of start up/early stage companies.
• Provide tools, know how in setting up national organisations.
• Networking
• Toolkits – For BAN (e.g. code conduct, investor agreements etc)
Good Practice
Co Investment Funds
• Establishment of Co Investment Fund
• Invests alongside investors
• Uses skills of investors, but doubles their capacity
• Invests Pari Passu
• Uses due diligence of investors
• Uses skills of investors to develop businesses
• Offer funded by public sector
Good Practice
Investment readiness Programmes
Programs to educate entrepreneurs:-
- Identify appropriate finances
- Build viable business models
- Present a good business plan
- Pitch convincingly to investors (Major Problem)
Good Practice
Investor Training Programmes
• Some networks operate programs (training programs for investors)
• Some keen to invest but don’t know how to an implications
• Encouraging syndicates with experienced lead investor.
Summary
• Business Angels contribute to funding early stage businesses
• Business Angel Networks required to bring investors/companies together.
• Business Angel Networks work well when supported by associations/national network
• Importance of Investor and Investment Readiness programs.
