The First Russian-Israel Venture Forum
PROBLEMS AND PROSPECTS OF THE BUSINESS
ANGELS’ ACTIVITY IN RUSSIA
I. Panteleev,
Chief Executive of SBAR
14-15 March 2007
Tel - Aviv
National Commonwealth of Business Angels
(SBAR)
Non-Commercial Partnership
Established by the Russian Association of
Direct and Venture Investment (RAVI)
initiative and supported by the Investment
Policy Committee of the RF Chamber of
Commerce and Industry (CCI)
Public registration date:
27 December 2006
SBAR combines
Business-angels-investors of the small
innovation companies at the early stages of
development (the seed ones)
 Other natural and juridical persons promoting
the implementation of the SBAR goals and
objectives
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Members of SBAR
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The Volga Region Association of Business Angels – “Start (Initial)
Investment”
International Foundation for Technologies and Investment
Non-Commercial Partnership – “INTECH”
OJSC “NIKOR”
CJSC “AKADEM-PARTNER”
“BISS Ltd”
“ATIS” company
“NETECH Ltd”
“Angel Investor” magazine
Natural persons
The SBAR development concept
was approved at the meeting of the
National Commonwealth of
Business Angels on 26 January
2007
Table of Contents:
1.
2.
3.
SBAR development concept
General provisions
Business angels and innovation economy
SBAR and Russia: the society and the state
3.1. SBAR and society
3.2. SBAR and the state
4. Basic directions for the SBAR activity
4.1. Self-development
4.2. SBAR – for its members
4.3. Development of the company partnership
4.4. International activity
4.5. Economic activity
5. SBAR and its business partners
SBAR development concept
1. General provisions
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The SBAR development concept determines the basic
SBAR activities for the perspective.
Mission: assistance in acceleration of the innovation
development of the country and growth (based on this)
of the innovation GDP constituent.
Objective: assistance in formation and development of
a new branch in the country’s economy – the ‘business
angel’ investment based on creation of favorable
conditions for the business angels’ activity in Russia.
Business angels (BA) and small innovation companies
(SIC) is a single whole. BA are a part of SIC.
SBAR development concept
2. Business angels and innovation economy
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Business angels are a unique investment mechanism (long terms,
high risks, a single team, “smart” money, etc.), the
commercialization process start and investment in the so-called
“seed stage”
BA (pre-ventured financing) together with the venture investing
(VI) are the key financial mechanisms for the SIC of the early
stages
Volumes of the investment resources in the BA and VI sectors
determine the size and speed of innovation development. The BA
and VI equilibration on stocks and objects for investment (SIC)
BA play out an important social role: investment in scientists,
science and intellectual potential
Governments of the countries create preferences, privileges and
benefits for BA and SIC for the purposes of capital formation in
the small innovation sector
SBAR development concept
3. SBAR and Russia: the society and the state
BA development status by the beginning of 2007
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BA are not formed as a part of the society, state and
economy
Fragmentariness – the separate BA poorly interacting
between each other
UNIDENTIFIABILITY of BA
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Neither by society, nor by the state – as an investor-subject
of economy. There is no idea of ‘business angels’
Potential investors (by availability of capital) identify
themselves as BA – lack of information, knowledge and
experience
Financial insufficiency – a small fund volume in the BA
sector
SBAR development concept
3.1. SBAR and society
SBAR priorities
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Introduction of the BA term to everyday life
Creation of a positive image for BA and SIC in the social
consciousness – architects of the economy of
knowledge and the economy of the future… for the
benefit of everyone: citizens, society and the state
Explanation and clarification of the essence of BA and
their activity, a single team (BA, inventors, managers,
etc.) and objective, new relationship, confidence, mutual
aid, respect, etc.
Capital formation in the BA sector, demonstration of the
BA business profitability and availability, as well as of the
history of success
The slogan is: “Invest in the innovation Russia”
SBAR development concept
3.1. SBAR and society
Measures for implementation of priorities
A broad propaganda of the business angel movement and SBAR
opportunities based on:
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Publication of books and analytical articles, practical experience
and successful business stories;
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Appearances at forums, conferences and round tables of different
level;
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The own PR-actions organization;
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Participation in TV- and radiobroadcasts;
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Organization of the own, or in cooperation with partners, printed
and information editions, as well as of TV- and radiobroadcasts;
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Interviews to mass media.
SBAR development concept
3.2. SBAR and the state
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SBAR and the state are partners in formation and
development of the innovation economy
Priority direction – to arrange an operating interaction
with the bodies of executive and legislative power at the
Federal and regional levels
- on the basis of the principles of state-private
partnership
- for the purposes of organization of cooperation in the
innovation policy development and implementation,
legislation, projects and programs
SBAR development concept
3.2. SBAR and the state
Basic measures on implementation:
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The SBAR representatives’ participation in boards,
commissions, councils, etc. created and functioning at
authorities;
Initiating of the new and participating in the existing
public, state-private and international programs and
projects
Preparation of drafts for the new, as well as of
alterations and supplements to the existing legislative
acts and normative documents, and making proposals
to the corresponding authorities
SBAR development concept
4. Basic directions of the SBAR activity
4.1. Self-development
Objective: integration and growth of partnership in the
number of members, stock, aiding to BA in the
investment process
Basic directions:
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Involvement of the new members in SBAR,
development of the regional networks
Arrangement of a close interaction inside SBAR based
on the state-of-the-art TV- and information systems
The SBAR personnel formation and development
SBAR development concept
4. Basic directions of the SBAR activity
4.2. SBAR – for its members
The main objective is rendering an overall aid to BA and SIC during all innovation
cycle – from introduction to the business to ‘way out’ of the projects, as well as
within the period of formation of a BA as an investor
Priority directions
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4.2.1. SBAR – for business angels
Protection of interests of the business angels’ community and SBAR members;
Training business angels, improving the level of their professional skills,
business trainings for the beginners and potential business angels on the
principles of investment in the companies of the early stages;
Search and appraisal for the competitive projects, the due diligence conduct;
Rendering various consulting services (business planning, marketing, patents,
law, etc.);
SBAR development concept
4. Basic directions of the SBAR activity
4.2.1. SBAR – for business angels
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Priority directions
A ground for interaction between business angels and innovation entrepreneurs,
creation of the data base of the innovation companies prepared for investors in the
form of a virtual trade fair for the “seed” projects, conduct of presentations of
innovation companies for business angels;
Search for partners for co-investment including those among business angels,
venture funds, direct investment funds, in the framework of public projects and
programs, etc.;
Creation of the collective investment mechanisms in the form of a seed fund and
venture fund of SBAR;
Business trainings for the business angel project managers;
Services on management and co-management of the business angels’ projects;
SBAR development concept
4. Basic directions of the SBAR activity
4.2.1. SBAR – for business angels
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A ground for interaction between business angels for the purposes of
experience exchange, search for partners (the Business Angels’ Club,
conferences, congresses, conventions, round tables, seminars, etc.);
Popularization of the most successful business angels’ experience;
Creation and development of a powerful and intensive information support
for the business angels’ activity (the SBAR website);
Monitoring of development of the business angel investment in Russia and
abroad, collection of statistical data on the business angels’ investment
and development of the companies invested by them; issue of the regular
analytical reviews
SBAR development concept
4. Basic directions of the SBAR activity
4.2.2. SBAR – for the business angels’ innovation companies
 Training, business trainings for managers of those
innovation companies which are already invested by
business angels or planning to be invested;
 Preparation of innovation companies for the business angel
investing;
 Preparation of the business angels’ innovation companies
for the capital formation at further stages of development in
the form of the venture and direct investment, as well as
from the other sources;
 Preparation of the business angels’ innovation companies
for ‘way out’ of a project, search for a strategic investor,
coming out to the IPO;
SBAR development concept
4. Basic directions of the SBAR development
4.2.2. SBAR – for the business angels’ innovation companies
 Assistance in placing the small innovation companies in
technological parks and business incubators;
 Selection of the qualified innovation managers, creation and
development of a SBAR employment agency;
 Creation of favorable conditions for sale of the innovation
products and companies (exhibitions, trade fairs, in the
framework of a single SBAR stand; creation and
development of the SBAR trade house)
SBAR development concept
4. Basic directions of the SBAR activity
4.3. Development of the company partnership
Objective: to promote in arrangement of the good private and business
relations between the SBAR members based on the following basic
principles:
- equality of members
- priority of interests of Russia, society and science
- a solicitous and correct attitude of business angels to each other, a
mutual respect of the SBAR members’ interests
- confidence, reliability, OBLIGATORINESS, confidentiality and goodwill
- exclusion of the actions and acts that cause damage to the SBAR
image and reputation
- dismissal of those members violated the SBAR principles of mutual
relationship;
- The Ethic Code of Behavior for the SBAR members has been adopted
SBAR development concept
4. Basic directions of the SBAR activity
4.4. SBAR international activity
Objective: integration to the International Community of BA, experience exchange, foreign capital
formation, entry of the Russian innovation companies to the world market with their products, as
well as to the world stock exchanges
Basic directions:
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Joining and arranging the interaction with the European Association of Business Angels;
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Interaction with the National Associations of Business Angels in different countries;
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Training and experience exchange of business angels abroad;
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Organization and participation in the international venture trade fairs and business angel trade
fairs; conferences, forums, presentations, etc.;
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The foreign capital formation in the Russian innovation companies from different sources including:
- international and public projects and programs focused on Russia
- foreign grants
- foreign business angels, venture funds and other investors
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Assistance in search for the foreign business partners for the purposes of promotion of the
innovation companies’ products to the world market;
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Participation in the Russian programs and projects focused on the entry of innovation companies
to the world market;
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Assistance in entry of the Russian innovation companies to the world stock exchanges of high
techs (IPO) and search for the foreign strategic partners
SBAR development concept
4. Basic directions of the SBAR activity
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4.5. Economic activity
Implementation of the assigned tasks will need the significant
financial resources the volume of which will be increased in
the course of time.
Primary sources:
SBAR members’ contributions (regular and target ones);
Funds received from paying for the advisory, expert and
other services and works;
Sponsor funds;
Funds received from the research work execution;
Optional contributions;
International and state/public grants;
Other legal sources.
SBAR development concept
5. SBAR and its business partners
SBAR is intended to cooperate actively with all main innovation activity subjects as well as have
an impact on enhancement of the economic mode for functioning of the objects included to
the national innovation system*
Innovation activity subjects:
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Main subject – the innovation companies by the stages of development
Knowledge generation subjects (an inventor, the organizations carrying out the
R&D)
Management subjects (an innovation manager and a managing company)
Financing subjects classified by the stages of development of companies
(business angels, state funds, direct investment funds, banks, etc.)
Infrastructure subjects (business incubators, technological parks, couching
centers, consulting organizations, etc.)
Subjects of state and public regulation of innovation activity
Innovation product consumption subjects (enterprises, natural persons)
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* The classification is published in the article titled “A new approach to forming the innovation legislation” (“Innovations” magazine №3(90), 2006).
SBAR development concept
5. SBAR and its business partners
Innovation activity objects
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Innovation activity state and public regulation objects (laws, acts,
normative acts, regulations, orders, instructions, statements,
standards, norms, agreements, etc.)
Intellectual property objects – patents, certificates of authorship,
certificates for useful models, etc.
Innovation products – certificates, licenses, etc.
Innovation manufacture objects – technologies, equipment, etc.
Innovation projects – state and private projects, target programs
focused on the innovation activity development
Innovation companies’ shares
Contracts and agreements between the innovation activity
subjects
SBAR development concept
5. SBAR and its business partners
The SBAR main priorities in respect of the innovation activity
subjects and objects
Subjects:
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Public and business associations and, first of all, the Russian
Association for Direct and Venture Investment (RAVI), RF CCI,
Russian Union of Industrialists and Entrepreneurship (RUIE),
DELOVAYA ROSSIYA, OPORa and others
Institutes of higher education, scientific institutions and inventors –
sources for the new knowledge and workouts
Financial mechanisms – venture funds, direct investment funds, state
and private funds, banks, stock exchanges, etc.
Infrastructure – technological parks, business incubators, auditing and
consulting agencies
SBAR development concept
5. SBAR and its business partners
Objects:
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State and private innovation projects and programs. Proposals on participation in the
existing, as well as in development of the new projects and programs concerned with the
support for the business angel financing and innovation companies
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Intellectual property objects – the proposals on increase of effectiveness in use of the
intellectual property objects, motivation of inventors in commercialization of technologies
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Shares of innovation companies, perfection of the corporate legislation promoting the
establishment of the managerial balance between business angels, inventors, managers
and other owners of innovation companies
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Contracts and agreements between the innovation activity subjects – working out of the
Russian standards for contracts and other documents for the business angel investment,
as well as formation and development of innovation companies.
We welcome you at
SBAR!
Tel.: (495) 631-2922
Fax: (495) 631-6318
E-mail: Info@russba.ru
www.russba.ru
Thank you for your
attention!