19 January 2010 - EBAN...•Withdrawal of VC funds from early stage investing –Angels increasingly...
Transcript of 19 January 2010 - EBAN...•Withdrawal of VC funds from early stage investing –Angels increasingly...
19 January 2010
Welcome
Jonathan BlakeSenior Partner, SJ Berwin LLP
Introduction
Anthony ClarkeChair, British Business Angels Association
Simon WitneyPartner, SJ Berwin LLP
2020 Vision: New Trends and developments for investing
Hugh CampbellPartner, GP Bullhound
20:20 VisionInvestment Trends
January 2010
What is the Economy Telling us?
Interest Rates are at an all Time low...
Source: OECD
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Consumer Sentiment Taking a Positive Turn...
Source: OECD
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1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09
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But Unemployment Remains High
4.3
4.9
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1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09
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Source: OECD
Still in Recession?
Source: OECD
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1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09
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How Have Markets Been Performing?
Market Indices Rebounded in 2009…
Source: Capital IQ
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Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09
OMX Stockholm 30Germany DAXParis CAC 40Dow Jones Composite AverageNASDAQ Composite
FTSE 250(% increase since low)
(64%)(54%)
(49%)
(67%)(66%)
(51%)
...With Technology Sector Outperforming...
Source: Capital IQ 1 European Technology Index: SAP, STMicroelectronics, Logitech, Nokia, Ericsson, Logica, United Internet, Meetic, Moneysupermarket.com, Net Entertainment2 US Technology Index: Microsoft, Google, Apple, IBM, Cisco, HP, Oracle, Intel, Amazon, eBay
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US Technology IndexEuropean Technology Index
Euronext 150
S&P 500
…A Recovery that is Also Reflected in Valuations
2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009
2003 2004 2005 2006 2007 2008 20092003 2004 2005 2006 2007 2008 2009
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9.0x Internet
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1.4x IT Services
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2.5x Enterprise Software
Source: Capital IQ, EV / Sales
What About Sectors?
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1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09
Renewable Energy SoftwareCommunications and Networking Electronics and Computer HardwareInformation Services SemiconductorsOther IT
Internet and Clean-Tech Replacing Software and Communications
Source: Venture Source
Ecommerce: How Times have Changed
Boo.com – Online Sports Retail
Founded 1998Bankrupt 2000
Webvan – Online Grocery & Delivery
Founded 1999Bankrupt 2001
Source: GP Bullhound, Capital IQ
Online Grocery Shopping & Delivery Service - Tesco.com
2008 Revenue: $3.1bn
Online Designer Fashion Sales - NET-A-PORTER.COM
1.8m women visit the site every month
Enterprise Software: It’s All About SAAS
E-learning: Make Way for the Digital Student
Cleantech: Take Care!
Internet: Renewed Investor Appetite
Long Awaited Sale – September 2009
Enterprise Value / Revenues = 5.7x
Private Placement – August 2009
Investment valuing Spotify at $250 million
Private Placement – May 2009
Investment valuing Facebook at $10bn
Private Placement – September 2009
Investment valuing Twitter at ~$1bn
Source: GP Bullhound, Capital IQ
Where angels should fear to tread
Capital intensive businesses -Hardware and systems; semiconductors; some cleantech
Many areas of the mobile value chain-Dependency on operators / handset vendors
Less than 12 months cash if not 24 months-Not a good time to be out in the funding market
Businesses where they have little experience-Stick to what you know
What About Exits?
IPO Market Virtually Closed – but Filings Show Promise
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European IPOs
US IPOs
Source: Venture Source, all sectors, venture backed IPOs
Recent IPO filings:Trius Therapeutics
Trony Solar Holdings Alimera Sciences
TeleNavAldagen
European Exit Volumes Remain low...but Deal Sizes are Improving...
2006 2007 2008 2009
Source: Capital IQ
1. Median deal size excludes deals with no disclosed transaction value; data from all sectors, only private venture backed companies
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Deal Multiples are Slowly Moving up
Internet Software and Services
Source: EV/Sales, Capital IQ, includes deals larger than $20m
Semiconductors
IT Services Software
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2003 2004 2005 2006 2007 2008 20092003 2004 2005 2006 2007 2008 2009
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Important to “Get in Cheap”
Number of Deals Value of Deals
56% 57% 50% 53%68%
22% 21%23% 20%
12%
14% 10% 13% 10%9%
8% 12% 14% 17% 12%
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2005 2006 2007 2008 2009<€25m 25-50m 50-100m above 100
56% 57%50% 53%
68%
22% 21%23% 20%
12%
14% 10%13% 10%
9%
8% 12% 14% 17% 12%
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10%16% 12% 10% 5%
13%
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15%16%
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63%53% 58%
64%
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2005 2006 2007 2008 2009
Source: Capital IQ, includes deals with a disclosed value above $1m, private companies backed by a financial sponsor
So, the Current Market in Summary
We are not quite here:
.....but not quite here either:
Hugh Campbell| [email protected] | +44 (0) 7733 123 986
The future of venture investment in the new decade
Simon WalkerCEO, BVCA
Implementing the UK Innovation Fund and the results of the Rowlands Growth Capital Review
David QuysnerChair, Capital for Enterprise Ltd
Panel debate: What are the opportunities for investment in early stage growth businesses from these new initiatives?
ModeratorErnie Richardson, MTI Partners, BVCA Council Member
PanellistsBen Doyle, European Investment FundEmma Squire, Dept. of Business Innovation Skills Professor Markku Maula, Aalto University (Finland)
Benchmarking Angel Investing in the UKPreliminary results and key findings of the 2009 Survey of Angel Investing Report
Professor Colin MasonHunter Centre for Entrepreneurship, University of Strathclyde
1. The Importance of Business
Angels• Known for some time (c.1990) that
business angels (BAs) are the most
significant providers of early stage VC
• Also recognised by government
– „Informal investment demonstration projects‟
1991
– Subsequent support for BANs by BLs and
RDAs
– Enterprise Investment Scheme
36
The significance of BAs has
increased since 2000• Withdrawal of VC funds from early stage
investing
– Angels increasingly „the only game in town‟
– Angels having to do more follow-on
investments
• Reduction in bank lending since financial
crisis
• Business angels are key co-investors with
public sector venture capital funds37
Need for better data
• But our knowledge base is limited to just a few ad hoc
surveys – small scale, samples of convenience, sample
bias, generalisability issues, no time series
• GEM has confused matters with data on „informal
investing‟ – which includes investments by family and
friends
• Bank of England has been calling for „more robust‟ data
on business angel investment activity since mid-1990s
• Need two types of data:
– one-off studies that drill-down on specific topics – e.g.
NESTA/BVCA returns study;
– annual data on market activity: number of angels, investments
and characteristics of investments
38
Why do we need better data?
• Awareness: to demonstrate the significance of BAs to
various audiences: e.g. government, RDAs,
entrepreneurs, HNWIs, opinion formers, etc. - change
perceptions, attitudes, behaviour:
• Better statistics: lack of data on BA investments leaves a
huge void in small firm financing statistics (cf. BBA data
on bank lending and BVCA statistics on VC investing)
• Policy responsiveness: monitor changes in the market
so that government (and other organisations) can
respond in an appropriate and timely manner
• Learning: gives angels and entrepreneurs greater
understanding of the market
39
Challenges!
• Market is largely invisible and unorganised - no
access point to the market (cf. BBA, BVCA)
• W E Wetzel: the total population of business
angels and the scale of their investment activity
“is unknown and probably unknowable”
– Private and hence anonymous activity
– Investments unrecorded
– Angel investors cannot systematically be identified
– Those who are identifiable are often unwilling to
disclose information on their investments
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continued• Small Business Service commissioned Mason in
2006 to review data sources and methodologies
that could measure UK business angel activity:
– report published in 2008
– Identified several potential approaches to
measurement
– distinguished between the visible and invisible market
• Visible market - BBAA networks, Non-BBAA networks (e.g.
online networks), Angel syndicates/groups
• Visible market becoming larger over time
• Visible market can be measured
• With additional data it is possible to extrapolate from the
visible market to estimate total market size41
The present study
• Mason and Harrison commissioned in 2009 by
consortium led by BIS (including BBAA, LINC Scotland,
ACCA) to produce a commentary on UK business angel
investment activity and an estimate of total market
activity based on new data provided by BBAA and
HMRC
– Survey of activities of BBAA member networks
– Data on investments made through BBAA member
networks
– Data on investments made through LINC Scotland
– Survey of angels affiliated and unaffiliated with
networks
– HMRC analysis of investors using EIS, VCTs and
CITR42
Scope of presentation
• Focusing on the visible market: BBAA
Membership Survey
– Full/partial responses from 20 out of 25
members on their activities
– Profile of how the market is organised
• Collected as part of EBAN survey so can compare
UK market with other countries in Europe
• Can compare with organisation of market in prior
to 2002 (NBAN era)
– Investment activity in the 2008-9 financial
year 43
Importance of the time context
• Covering the onset of the financial crisis
• Wealth of many angels and potential angels likely to
have been hit
• Sharp reduction in private VC investors
• Some public sector investment schemes that had been
co-investment partners coming to an end
• Liquidity issues:
– Few exit opportunities
– Angels having to do more follow-on investing
– Less bank finance available
• BBAA survey of members (Jan 09)
– Activity down 30-40% Jan 09 cf. Jan 08
– 30% of angels fully invested44
Supply side – how many
angels?• 5,500 angels registered with responding
BBAA networks
• Skewed distribution: 4 networks accounted
for 67% of investors – median of 123
investors
• 3% are women
• 1700 joined during the year (31%) -
skewed; 473 left (9%)
45
Demand for finance
• 8,685 business plans received by BBAA networks
– skewed : 4 networks account for 66%
– median of 220 per network.
• 824 companies [10%] „promoted‟ to investors
• 233 investments made by registered angels
– 28% of those promoted
– skewed – 4 networks accounted for 44% of investments
• Implications
– Confirms the financing „funnel‟
– Highlights to entrepreneurs how competitive it is to raise finance
– Illustrates the value-added contribution of networks to get
businesses investment ready
46
Network investment activity –
the big picture
• Number of investments
– 233 investments made through BBAA Networks
– 74 investments made though LINC Scotland
– (cf. 455 early stage VC investments in 2008: BVCA statistics)
• Total amount invested by affiliated angels and other
investors
– £95.6m through BBAA Networks
– £27.6m through LINC Scotland
• Amount invested by angels in the Networks
– £44.9m by Angels registered with BBAA networks
– £17.9m by Angels associated with LINC Scotland
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continued
• Investment activity
– 590 angels registered with BBAA networks invested –
10.6% of the total [less if individual angels have made
more than one investment]
– Median investment per company per BBAA network
was £183k
– Median investment per angel per BBAA network was
£69.3k
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Investments made through
networks – drilling down
• Covers 225 investments made through BBAA networks
• Size of funding round typically less than £500k (> 75%)
– 10% over £1m
• Majority of investments involved multiple investors
– Angels exclusively invested in 58% of deals; 42% also included
other investors: unaffiliated angels, VCFs, banks, corporate
investors, CIFs, etc
– Two-thirds of investments involved more than one angel; 1 in 5
involved 5+ angels
• Angels invested smaller amounts per deal
– Two-thirds of investments by angels were less than £200k
– Tendency for bigger deals to involve more angels
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Investee company characteristics
• Initial funding rounds
– 59% raising finance from the Network for 1st time; 23% for 2nd
time; 6% at least 5 times
• Young companies
– 69% start-up/early growth; 82% including expansions
– Few angel deals involve seed, turnaround or MBO
• Small companies
– 63% have fewer than 5 employees (87% 10 or less)
• Wide range of industry sectors – but technology focus
– 23% IT/internet/software/telecoms
– 17% medical/healthcare/biotech/pharma
– About 55% of investee companies could be described as
technology based.
50
Change in the Visible Market1: Evidence from LINC Scotland
– 2000/1 to 2008/9
– Mainly comprises investments by syndicates (>90% in 2008-9)
• Growth in number of active syndicates: 2 to 19
• Increase in investment activity
– 31 to 74 deals
– £6.7m to £17.9 invested by angels
– £7.2 to £27.6m total deal size (CIF effect)
• Angel investment as % of the total amount invested is
declining
– 93% to 65%
• Follow-on investing as % of all investments is
increasing
– 10% to 68% (>50% since 2006/7) 51
continued
2: Comparison with investment activity of NBAN members
in 2000-01 (returns from 22 networks).
• Investment activity has increased
– Number of investments: 217 → 307 (+41%)
– Total deal size: £49.6m → £123.2m (+148%)
– Amount invested by angels: £30m → £62.8m (+109%)
– Angel share of overall deal has fallen: 60% → 51%
• The number of angels investing in each round has
increased
– One angel: 73% → 39%
– Two angels: 15% → 18%
– Over five angels: 4% → 17%
52
continued
• Amounts invested by registered angels per deal
has increased– Less than £50k: 41% → 26%
– £51k-£100k: 24% → 24%
– >£100k: 34% → 50%
• Focus on early stage is unchanged– Seed: 2% → 3%
– Start-up: 28% → 27%
– Early stage: 37% → 42%
• Focus on technology has increased– 44% → 55%
53
Key Insights I
• Caveats
– Only covering the visible market
– The time-period covered by the data
– Non response from 20% of Networks
• Skew is characteristic of the market – „averages‟
are therefore misleading
– Network activity;
– Deal sizes;
– Size of investments by individual angels
• Women are under-represented as investors
54
Key Insights II
• Challenge for networks is to increase the
proportion of angels that are actively investing
• For the entrepreneur – obtaining funding is
competitive
• Networks help entrepreneurs to become
„investment ready‟
• Most deals are <£500k
• Most deals involve multiple investors
• Angels typically invest <£200k per deal
55
Key Insights III
• Companies raising finance – young, small,
technology-based
• Market has increased in the „noughties‟
• Market has changed:
– Deal sizes have got bigger
– More co-investors per deal
– Follow-on investments are increasing as a proportion
total investment activity
– Proportion investments in technology investments has
increased
– Focus on young companies remains unchanged
56
Going forward
• The project has provided valuable insights into
the operation of the market, its growth and
change
• The evidence has implications for ALL
stakeholders!
• Value of the project will increase with each new
year of data
• Need everyone to contribute to next year‟s
project so that it can provide an even more
authoritative and detailed insight into the market57
Debate: The implications of the research data for the early stage investment market
PanellistsPhillip Rice, HM Revenue and CustomsAlexander Chislett, HM Revenue and Customs Mike Young, BIS SME Access to Finance Expert GroupDavid Grahame, LINC ScotlandProf. Richard Harrison, Queen’s University
Panel debate: Can Angel Investing become the new norm for entrepreneurial women?
ModeratorSally Goodsell, Finance South East
Panellists Melanie Perkins, Aspire FundJennifer Naylor, Golden Seeds (New York)Rowena Ironside, Angel Investor
THE ASPIRE FUND
Melanie Perkins
60
spireASupporting Women Led Businesses
Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
Objectives of The Aspire Fund
• To invest in ‘women led’ businesses
• To act as a beacon to raise the profile of women entrepreneurs
• To encourage more women to seek external funding to grow their businesses
61Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
What is The Aspire Fund?
• Developed as part of The Enterprise Strategy
• Announced by Secretary of State in November 2008
• A £12.5M Fund
• Direct co-investment
• Discretionary basis
• Managed by Capital for Enterprise Ltd
62Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
Why is it needed?
• Only 16% of the 4.7m UK enterprises are majority women led
• If women started businesses at same rate as men then 150,000 extra start ups per annum
• Lower female entrepreneurial activity than US (900,000 more business if matched!)
63Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
Fund’s Main Features
• Amounts from £100,000 to £1M (total funding rounds of £200,000 to £2M)
• UK SMEs
• To meet various funding needs
• Risk capital
• Equity/preference/mezzanine funding
• Follow lead investor
• Commercial terms
64Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
The Lead Investor
• Who could be the lead investor?• Financial institution
• Group of business angels
• Sophisticated individual investor
• Independent of the business
• Their Role:-• Lead the funding round
• Carry out due diligence
• Negotiate Terms
• Recommend the investment
65Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
Investment Portfolio
4 investments totalling £1.3M made to date.
(Total funding raised £3.5M)
Sectors – computer software, medical, pharma, B2B internet business
11 investments under active consideration
66Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
TalentPuzzle (VRG Ventures Ltd)
• HR recruitment via the internet, increases transparency
• Start up
• Aspire invested £150,000 in a £325,000 round led by a vc fund; two angels also invested
• To be used for working capital
• Company led by Virginia Raemy
67Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
Altacor Limited
• Early stage pharma business developing ophthalmic products
• Aspire invested £400,000 as part of a £1M round led by another VC
• To be used for working capital
• Company led by Dr Fran Crawford
68Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
The Aspire Fund
Thank you!
69Melanie Perkins, BBAA Winter Workshop, 19 January 2010
spireASupporting Women Led Businesses
Panel debate: Can Angel Investing become the new norm for entrepreneurial women?
ModeratorSally Goodsell, Finance South East
Panellists Melanie Perkins, Aspire FundJennifer Naylor, Golden Seeds (New York)Rowena Ironside, Angel Investor
71
Jennifer Thayer Naylor
Managing Director
Co-Leader, Internet Business Group
Sector
www.goldenseeds.com
72
About Golden Seeds
• U.S.-based angel investor group with chapters in New York City, Boston, Philadelphia & San Francisco• Founded 2004 to invest in women-led companies• Membership: more than 110• Investments: $12m in 44 rounds of financing across 24 companies• Due diligence process: 8 - 12 weeks per deal• “Side car” fund: $3.8m, co-invests with members• Training: covers all aspects of the investment process• Targeting an under-served market, we attract the best deals in our niche
73
Investment results through September 2009
• 44 deals in 24 companies
• $12m invested; avg. $300 - 500 k / deal
• 2 companies out of business (lost $434k)
• 3 companies sold, one for stock, two for cash
• First exit (cash): $300k invested, $2m returned, aggregate multiple 9.1X, IRR 109%
74
What we have built
• A strong investment process
• 110 actively engaged investors
• Sector-specific expertise
• Strong deal flow across all sectors
• Powerful contacts and resources
• Robust infrastructure for deals and funds
• High quality portfolio reporting
• High standard of ethics and values
75
What GS Needs to Improve
• Member engagement
• Achieve greater expertise diversity
• Better knowledge of members’ expertise
• More member - entrepreneurs
• Clarify membership expectation
• Encourage more proselytization
76
Attracting and Keeping Women Angels
• Make it part of your mission: walk the walk
• Put women out front, in your leadership and
on your panels.
• Offer training and mentorship
• Message differently to women
• Leverage women entrepreneur networks
• Engage them early and often
spireASupporting Women Led Businesses
Panel debate: Can Angel Investing become the new norm for entrepreneurial women?
ModeratorSally Goodsell, Finance South East
Panellists Melanie Perkins, Aspire FundJennifer Naylor, Golden Seeds (New York)Rowena Ironside, Angel Investor
Session 1: Are Online models the way forward for early stage investing? This session will take place in the Westminster Suite
Session 2: Are early stage deals more effective with ordinary shares or more complex instruments? This session
will take place in this room
Anthony ClarkeChair, British Business Angels Association
Financing growth - the future place of debt and equity
Stephen PeggeHead of External Affairs, Lloyds Banking Group CommercialChairman Small Firms, British Bankers’ Association
Discussion
Current headlines in the SME banking market
What support do SMEs tell us they need?
Practical banking solutions through the lifecycle
Equity and debt providers working together
How can you talk with us?
UK Growth Companies
UK Growth Companies
Start ups important but 70% established over 5 years
UK Wide – higher proportion in Scotland, Wales and NE
Good sector spread – especially business services
UK well positioned
Measuring Business Growth (Anyadike-Danes, Bonner, Hart, Mason) NESTA Oct 09
Most businesses stay small – 6% grow by 20% or more
The current headlines in the SME financing market
BBA lending stats show 2% growth to end Nov
BoE trends in lending report average SME margin 3-4%
EC survey shows 20% access to finance biggest issue
Business in Britain predicts net cut investment in 2010
Fragile confidence holding back demand for finance
Funding for growth – recent history and longer term
Supply - mid 90s saw some high risk, poorly priced lending
Demand – awareness, control and investment readiness
Infrastructure – initiatives focused on <£2m, market >£10m
Economics – efficiency vs. local distribution, risk/return
Provision of Growth Capital to UK SMEs - Rowlands Nov 09
What support do SMEs tell us they need?
Maturity
GrowthExit
Start up
Business
Lifecycle
Understanding their business
Efficiency, reliability, speed
Value for money and value-add
Introduction to specialist experts
Support through their lifecycle
Business
LifecycleStart up
Wholesale
Markets/
Treasury and
Trading
Our customers want help to start trading
Business planning
Transactional capability with customers
Finance
Introductions to a support network
Characteristics
40% have been in business before
60% starting from home
50% sole traders
80% don’t borrow
Practical solutions through the lifecycle
Practical solutions through the lifecycle
Business
LifecycleGrowth
Wholesale
Markets/
Treasury and
Trading
Where are the gaps?
Management skills and advisors
International experience
Balance Sheet capacity
Protection and contingency planning
Longer term strategic direction
Our customers want support to meet the demand
Efficient trade and cash management
Flexible Working Capital Finance
Finance for Assets
Business Advisory services
Risk Management
Practical solutions through the lifecycle
Business
LifecycleMaturity
Wholesale
Markets/
Treasury and
Trading
Challenges
Competition
Ill health and disaster recovery
Market and technological change
Succession planning
Finding continuing sales opportunities
Our customers want to improve efficiency
Manage working capital cycles
Reduce cost of capital
Upgrade assets
Improve customer service
Distribute company value
Business
LifecycleExit
Wholesale
Markets/
Treasury and
Trading
Practical solutions through the lifecycle
Our customers want to realise value
Introduce new partners
Sell to a new owner
Wind down
Leakage
Enforced exits
Shortened timescales
Poor preparation
Inadequate alternative provision
Reliance on the key individuals
Poor tax planning
Equity and debt providers working together
Business Angels have a recognised track record of identifying opportunities
Angel investment contributes knowledgeable support
Brings wider business contacts to the company
Business with Angel investment have a great head start
Establish a track record of good banking
Spend time with the relationship manager
Utilise assets for security appropriately
Build on that head start and encourage investees to
Enhance returns
And
Reduce the risk
How can you talk with us?
UK’s largest branch
network
UK‟s largest branch network
Local authority for decisions
Invest in vital local networks with- Investors including Angels!
- Accountants and other advisors
- Attend local business seminars
Online guides and support
Holistic view of financial needs
Increasing the pool of angel investing in the UK:The results and impact so far from the BBAA Awareness Campaign
Moderator Jenny Tooth, British Business Angels Association
PanellistsAndrew Burton, Yorkshire Association of Business Angels Alan Watts, Halo (Northern Ireland)Pat Geraghty, Central England Business Angels
The BBAA Awareness CampaignJenny Tooth, BBAA
BBAA Awareness Campaign 2009-10
•Build on NESTA-BBAA Research results to promote
awareness of angel investing across the UK regions –
response to downturn in level of angel investing
• Recruit individuals with Business skills, expertise and Smart
Money- Promote recognition of this Asset Class
• Government (BIS) backing the national campaign and RDAs
providing regional support
• Regional Awareness events organised by BANs – identify
new Angel investors to join local networks – build the capacity
to become effective investors
BBAA Awareness Campaign 2009-10
• 6 major regional events held so far, Yorkshire ; North West;
East Midlands; West Midlands; South East and NI
• 600 Potential investors and advisers working with HNWs -
Follow-up training/capacity building workshops
• Extensive publicity and interest in BA investing
• Dedicated BBAA Web-site for Awareness Campaign
•New Handbook on Legal and Advisory issues for investors
•Further events in 2010 in other regions: East of England;
London; South West and North East - also Women target!
Increasing the pool of angel investing in the UK:The results and impact so far from the BBAA Awareness Campaign
Moderator Jenny Tooth, British Business Angels Association
PanellistsAndrew Burton, Yorkshire Association of Business Angels Alan Watts, Halo (Northern Ireland)Pat Geraghty, Central England Business Angels
New perspectives for global angel investing
John MayCo-Founder, World Business Angels AssociationChair Emeritus, Angel Capital Group(US)
BBAA Winter Workshop - Tuesday 19 January 2010
About WBAA
• Conceived: Estroril, Portugal- Declaration 10th October 2007
• Incorporated: January 2009
• WBAA launched Dubai in April 2009
• Unique international association of federations of angel groups
• Not for profit based in Brussels, Belgium
Our mission
“To stimulate the exchange of knowledge and practices about the importance of angel capital financing for high growth and
innovative start-ups at the international level”
BBAA Winter Workshop - Tuesday 19 January 2010
The business angels worldwide activity helps to • Build up an effective environment for financing innovation and
entrepreneurship• Disseminate good practice tools for financing innovation and
entrepreneurship, available worldwide, in order to promote start up companies, with support of Business Angels
• Establish partnerships between angels networks from different countries, including to stimulate cross border investments
• Enable 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.
Background to the creation of WBAA
BBAA Winter Workshop - Tuesday 19 January 2010
WBAA Board Members
WBAA Honorary members
BBAA Winter Workshop - Tuesday 19 January 2010
1st WBAA Global ConferenceDecember 5-8 2009 in Beijing, China
BBAA Winter Workshop - Tuesday 19 January 2010
• Increase awareness about benefits of WBAA
• Recruit further national BAN members, build partnerships
Repository and an “observatory” for benchmarking and sharing of good practices and expertises
• Explore specific mechanisms to develop cross border angel investing worldwide , including online WBAA Member deal sharing and face to face investing opportunities
• - BBAA membership being able to participate in cross-border deal-making with other WBAA Investor networks
• Make the BBAA member organisations more visible to other WBAA members to promote increased opportunities for sharing and exchange of information and deals
Next steps
BBAA Winter Workshop - Tuesday 19 January 2010
www.wbaa.biz
Contact details
BBAA Winter Workshop - Tuesday 19 January 2010
Session 1: Are Online models the way forward for early stage investing? This session will take place in the Westminster Suite
Session 2: Are early stage deals more effective with ordinary shares or more complex instruments? This session
will take place in this room
Breakout session: Are early stage deals more effective with ordinary shares or more complex instruments?
ChairSandy Finlayson, MBM Commercial LLP
PanellistsAlliott Cole, Octopus Ventures Jay Patel, Spark VenturesKen Pelton, Angel Investor (OION)John May, New Vantage Group (US)
Feedback from parallel sessions
Oliver Woolley, Envestors LLPSandy Finlayson, MBM Commercial LLP
Summary and next steps
Anthony ClarkeChair, British Business Angels Association
Thank you