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

0

1

2

3

4

5

6

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09

(%)

EU US

Consumer Sentiment Taking a Positive Turn...

Source: OECD

(6)

(5)

(4)

(3)

(2)

(1)

0

1

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

(%)

EU US

But Unemployment Remains High

4.3

4.9

5.5

6.1

6.7

7.3

7.9

8.5

9.1

9.7

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

(%)

EU US

Source: OECD

Still in Recession?

Source: OECD

(3)

(2)

(1)

0

1

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09

(%)

EU US

How Have Markets Been Performing?

Market Indices Rebounded in 2009…

Source: Capital IQ

70

120

170

220

270

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

70

90

110

130

150

170

190

210

Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09

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

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x Semiconductors

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x Internet

0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x IT Services

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x Enterprise Software

Source: Capital IQ, EV / Sales

What About Sectors?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

35

15

31

9

18

6

12

13

1

16

9

18

14

24

12

26

6

13

0

5

10

15

20

25

30

35

40

2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09

Nu

mb

er o

f IP

Os

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

0

50

100

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Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Nu

mb

er o

f De

alsM

ed

ian

Dea

l Siz

e ($

m)

Number of Deals Median Deal Size ($M)

Deal Multiples are Slowly Moving up

Internet Software and Services

Source: EV/Sales, Capital IQ, includes deals larger than $20m

Semiconductors

IT Services Software

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3

0.0

1.0

2.0

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5.0

6.0

7.0

8.0

9.0

10.0


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8.0


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

0.0

2.0

4.0

6.0

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10.0

12.0


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%

0%

20%

40%

60%

80%

100%

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%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009

10%16% 12% 10% 5%

13%

16%14% 14%

4%

15%

15%16%

12%

6%

63%53% 58%

64%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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

40

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

47

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

48

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

49

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


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


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



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!)



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



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



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



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



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



The Aspire Fund

Thank you!


71

Jennifer Thayer Naylor

Managing Director

Co-Leader, Internet Business Group

Sector

[email protected]

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

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

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


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


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


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”


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


WBAA Board Members

WBAA Honorary members


1st WBAA Global ConferenceDecember 5-8 2009 in Beijing, China


• 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


[email protected]

[email protected]

www.wbaa.biz

Contact details

mailto:[email protected]


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


Thank you

19 January 2010 - EBAN...•Withdrawal of VC funds from early stage investing –Angels increasingly...

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