Angel Prieto
General Manager of GOBAN – B.A.N. of Castilla
La Mancha, Spain
Member of EBAN
E: aprieto@gobanclm.com
W: www.eban.org
www.gobanclm.com

Business Angel: Private individual investing own wealth in early stage businesses AND own expertise and network of contacts
INVEST:
• Investment 25 000 - 250 000 euro
• No sector preference
• Often prefer to invest in their region of residence
• Usually total investments below 25% of wealth
SHARE:
• Willing to share their managerial skills, specialist knowledge and networks
• Seeking profit, but also fun
• Can become involved in the business (“active Angel”) or not
(“passive Angel”).
2

Characteristics that Business Angels are seeking:
1. Current & comprehensive Business Plan /Teaser
2. High growth / scaleable / strong business forecast
3. Developed product / service with sales
4. Angel involvement welcome
5. Realistic pre-money value
6. Strong & committed Management Team
7.
BUT Entrepreneur’s qualities are most important
3

0
Capital Needs
IPO
Higher
Risk
Friends,
Family &
Founders
Business
Angels
Early stage and seed venture funds
Venture
Capital
Funds
Angels help fill the ‘Equity Gap’
Seed Start-up Early Growth
Time
Lower
Risk
Sustained Growth
4

Entrepreneur
Contact of BAN
Business plan evaluation and validation
Drafting of business plan summary
Investment readiness programme
Preparation of a presentation
Confronting offer and demand
Circulation of
Business plan
MATCHING
Leverage funding, cofunding, bank loans
Business Angel
Identification
Training
Identification of investment priorities
BA added to database
Participation in investment forum/club
5

GOBAN- Business Angel Network of Castilla La Mancha, Spain www.gobanclm.com
Regional Government Financial Aid
Managed by Business Innovation Centers
Chamber of Commerce involvement
Regional coverage (4 contact points)
Web based services
Venture Academies (40 Entrepreneurs)
Investment Days (20 B. Angels)
6

Circa 100 members
EBAN
13 Federations – 250 angel networks + associated members
Membership
X4 in 5 years
27 countries
Now open to seed funds
20.000 angels
40.000 entrepreneurs
80.000 website viewers
8.000 publication readers
Over 100 members

• Very varied level of development
– UK has the most mature market in the EU
– France, Germany, Sweden, Belgium, Finland, Netherlands
– Smaller players, e.g. Italy, Spain, Norway
– AEBAN – Spanish B.A.N. Association with 24 members
– Very small markets, Slovenia, Greece, Portugal
• Different types of founders
• Varied level of Government support
• National trade associations sometimes represent the market
• Rapid growth
8

Number of Business Angel Networks
9

2008
Networks
For profit
Estimate n of angels
Investment per round
Total estimate invested annually
EU
334
31%
75.000
US
300
59%
250.000
207.226
€ 276.918$
4 billion € 20 billion €
Source: Compiled information from EBAN, ACA and Center for Venture Research
10

•Increasing co-investments with early stage funds and other investors
•Increasing provision of training services for investors and entrepreneurs
•Majority of investments still made at regional level but changing
•Diversification of investment sectors
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NATIONAL LEVEL
• Fiscal environment
- Capital gain or loss exemption from tax
- Equity guarantees
• Non-financial incentives
• Syndication opportunities w/ other Funds
• Business Angel Academies
• Venture Capital Academies
• Investment days
• Integration of BAN activities in the regional entrepreneurship strategy
12

• A common voice for all business angel networks at national level
• Higher visibility for the angel movement – representation near third parties
• A repository of good practice, case studies at national level
• A Government partner for research, policy development, etc to facilitate business angel investing
13

40
30
60
50
20
10
0 less than 1X 1X to 5X 5X to 10X 10X to 30X
Exit multiple more than 30X
No industry experience
Some industry experience
14

The Future: WBAA
World Business Angels
Association
• Establishing a proper environment for financing innovation and entrepreneurship
• Know and disseminate the proper tools for financing innovation and entrepreneurship, available worldwide
• Establish partnerships between angels networks from different countries, including stimulating angel cross border investments
• It is important for policy makers worldwide to use information gathered by the Business Angels community, and to foster their capacity to create and develop financing mechanisms, in a public-private partnership logic, to support innovation and entrepreneurship.
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Contact details:
EBAN
Rue Vautier 54
1050 Brussels | Belgium
E: Info@eban.org
W: www.eban.org
Contact details:
Angel Prieto
GOBAN
Avenida 4ª nº 3
E-02007 Albacete | Spain
E: aprieto@gobanclm.com
W: www.gobanclm.com
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