Part of a study for MIF (IDB Group)*

Amparo de San Jose IESE Business Angel Network

* This study has been carried out by IESE Business School commissioned by MIF (Multilateral Investment Fund, part of the IDB Group). Reproduction of this information is not authorized without the consent of MIF / IESE. Contact partners: Susana García Robles; susanaro@iadb.org; Amparo de San Jose; adesanjose@iese.edu

The School

Since 1957

Campus: Barcelona, Madrid, New York, Germany and Brazil (Sao Paulo)

More than 36,000 alumni

Ranked: 1st in Open Programs (2011 FT),1st MBA in Europe (2010 The

Economist)

IESE Business Angel Network

Since 2003

Spin off from training program

Not a club type / no fund type

Close to 12 million euros invested

48 deals

IESE Business School

28 Networks

4 Argentina

1 Bolivia

4 Brazil

5 Chile (up to 7)

1 Costa Rica*

2 Colombia**

5 Mexico*

1 Panama*

2 Peru

1 Dominican Republic*

1 Uruguay*

Network map

AR Red de antiguos alumnos del IAE CH Southern Angels CH Angeles de Chile

www.businessangelsclub.com.ar (sin web, parada) www.facea.uchile.cl

AR IECYT COL Angeles Inversionistas Bavaria CH Incured

WWW.iecyt.org.ar www.bav.sabmiller.com Parada

AR Emprende Argentina COL Angeles de los Andes - Capitalia CH Chile Global Angels

www.amprendear.org www.capitaliacolombia.com www.fundacionchiles.cl

AR Inversor Global CR Link inversiones CH Angeles DICTUC

www.igangels.com www.linkinversiones.com www.dictuc.cl

BOL Red de Angeles Genesis RD Enlaces CH Angeles del Sur

Parte de FUNDA PRO (sin web) www.angelesdelsur.cl

BR Floripa Angels MEX Angel Ventures MEX Fundacion E

www.floripaangesl.org www.angelventuresmexico.com www.fundacione.org

BR Sao Paulo Anjos MEX Guadalajara Investment Network PA Angeles de Panama

www.saopauloanjos.com.br (sin web) (sin web)

BR Gavea Angels MEX MTY Global Ventures PE Grup Invertir Peru

www.gaveaangels.org.br http://mglobalventures.com www.invertirperu.org

BR Bahia Angels MEX INNOVATEUR CAPITAL PE Grupo INCAPITAL

Parada www.innovateurcapital.com.mx www.grupoincapital.or.pe

UR Angeles de Uruguay

www.propoeritascp.com

Network directory

0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010 2011 2012

Evolution of angel networks

BAN existing at the end of year

Most networks are 3 to 4 years old. Often no linear evolution, facing difficulties after 2-3 years functioning.

Network origin

0

2

4

6

8

10

12

Angels Organizations Experts/enthusiast

No angel promoted, promoted by existing players in the ecosystem incubators, government, foundations …

0

2

4

6

8

10

12

14

1 to 35 36 to 50 51 to 100 101 to 150 150+

Number of angels in networks Limited membership (not only in club type networks). Common objective: increase membership.

EBAN Statistics

Highly inexperienced

Investment experience

27.82%

54.14%

18.05%

Nada

Poca (alguna operación cerrada)

Mucha (varias operaciones cerradas)

33.20%

24.54%

25.15%

11.55%

5.57%

Company Owners

Retired company owners

Large company executives

Independent professionals

Family Offices

Almost non-existing “serial investors” or entrepreneurs turned investors

Investors’ background

Investment

• Total investors 665 across the region

• Total investment: 99 deals (2005-2011)

• 70% from 2008 onwards

• Total amount 17 million USD (for 64 deals) (applied to 99 deals could be 23 million)

• Average 265,000 USD / deal. Excluding one network with large deals average deal would be 140,000 USD / deal

Highly dependent of non-activity related sources

Main source of income

0

1

2

3

4

5

6

Public sources Private institutions and

foundations

Fees for activities or sponsorship

Investors

- 2 networks are mostly investor funded - Club / Fund type

- Promoters (ecosystem players) - International / national grants

- Promoters (ecosystem players) - International / national grants

3

8

11

7

Idea

Seed

Startup

Growth

0 2 4 6 8 10 12

Type of projects received 25%

18%

15%

12%

30% Incubators

Universities

Collaborators

Angels

Source of projects

0

2

4

6

8

<50 50 to 100 100 to 200 >200

Number of projects received yearly

Deal flow

0

1

2

3

4

5

6

Monthly Bimonthly Quarterly Semiannually Annually

- Most common investment forums - Individual / group meetings are important - Less frequent on-line methods

Matchmaking

Meetings frequency

Current and future services offered by the networks

Network activities

0 1 2 3 4 5 6 7 8 9

Investment Fund

Coaching entrepreneurs

Training investors

Business plan contest

Newsletters, research …

Participation in DD

Future Current

0

1

2

3

4

5

6

7

0 1 person 2 people 3 people +3

Networks’ structure

Equivalent to full time employees. Overstaffed or providing additional services?

0

1

2

3

4

5

6

0 to 50,000 USD 50,000 to 100,000 USD

101,000 to 200,000 USD

+ 201,000 USD

Management structure costs

• Mobilize new investors:

– Some older networks are focusing on portfolio companies or departed from a low amount available to invest

– Most networks have the need to increase membership to achieve sustainability

• Capacity building:

– Within investors in networks – Untapped potential investors

Challenges

From “offer side”

• Improve quality deal flow – Intensive efforts to make companies investment

ready

– Improve quality at the source (incubators,

universities…)

– Through networks

Challenges

From “demand side”

• Access to angels in other regional markets

– Request from networks with more mature

investees

– To achieve critical mass (specially in Central

America)

• Offer complementary type of financing to investee

companies

– Through quasi – equity instruments (préstamos

participativos)

Challenges

From the operational side