Ontwikkelingsmaatschappij Oost Nederland NV

Science Meets Business

Rene Reijtenbagh 6 juni, 2013

Business Angel or Informal Investor

Business Angels

Wealthy, entrepeneurial individuals who provide risk capital. Further characteristic: risk capital ánd coaching (additional expertise, knowledge and networks)

Business Angel or Informal Investor?

• Mostly (former/active) entrepeneurs who have sold their companies • Want Return on Investment, but also “”Kick and Fun”” • Hands on involvement • Investments between € 50 k and € 500 k € 100 - € 200 k most common • (pre-)start and expansion • Mostly in the combination of shares and loans • To develop a personal relationship

Bridging the Equity gap

Time

Ne

ed

€

Start-up Early Growth Mature Pre-Seed

How to build a good proposition? I

Your product is developed or near completion You have existing custumers or potential custumers You’ve invested your own euros and exhausted ohter alternatives You can demonstrate that the business is likely to grow rapidly Your business plan is in top shape High return, realistic offer % shares and loan conditions Clear view what kind of investor is sought

Quality of a Proposition

Willingness

Qualit

y

Entrepeneur?

Demand in the

market?

Solution?

Realise?

Exit

Scalability?

DEAL!

Coach, advise?

Trends in the business angels market

1. Not only start-ups but also growing companies 2. Difficult for start-ups to find ba 3. Investing lower amounts in start-ups 4. Syndication/group investing business angels competing with

VC’s 5. Governmental co-investment facility’s for start-ups 6. Social Investing 7. Cross border investing