Christophe Beaud
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
CONTENTS
1. Who are Business Angels
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2. Angel Capital Market 3. Types of Angel Investment Strategies 4. Key Success Factors 5. Supporting Innovation 6. Business Angel Networks 7. 10 Lies and 10 Tips
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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Business Angels are private investors who invest in unquoted small and medium sized businesses. They are often businessmen and women who have sold their business. They provide not only finance but experience and business skills. Business Angels invest in the early stage of business development filling, in part, the equity gap. [EBAN website]
Motivation
Expectation of high financial return Playing a role in an entrepreneurial process Satisfaction of being involved in an entrepreneurial firm
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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Minimal
Of concern Simple Active, hands-on Important Of lesser concern
Extensive
Of lesser concern Comprehensive Strategic Of lesser concern Highly important
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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Private equity investing may broadly be defined as "investing in securities through a negotiated process". The majority of private equity investments are in unquoted companies. Private equity investment is typically a transformational, value-added, active investment strategy. It calls for a specialised skill set which is a key due diligence area for investors' assessment of a manager. The processes of buyout and venture investing call for different applications of these skills as they focus on different stages of the life cycle of a company. [EVCA Website] Seed Start-up Expansion
Replacement Capital
Buyout
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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[EVCA website]
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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26
43
9.1
9.7
2.3 133069
2.5 77534
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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Expansion
Buyout
30 %
11 % 49 % 9%
Type of EXIT
29 %
12 % 0%
IPO
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
SUPPORTING INNOVATION
Angel Point of View
+
+ + + + + +
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Knowledge of industry
Knowledge of technology Knowledge of revenue model Scalability of the project First mover advantage Timing of commercialization Other investors
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
SUPPORTING INNOVATION
Entrepreneur Point of View
+
+ + + +
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WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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Business Angel
MATCHING
Confronting offer And demand
Identification of the business angel Training Identification of investment priorities BA added to database
MATCHIN G
Leverage funding -co-funding -bank loans
Investment Club/Forum
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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EUROPE: European Business Angel Network (EBAN) CH: Association of Swiss Business Angels Network (ASBAN)
Private Networks in CH
BAS Business Angels CH, www.businessangels.ch Bisange SA, www.bisange.ch BrainsToVentures AG, www.b-to-v.com Club Valaisan des Business Angels, www.bizangels.ch MSM Investorenvereinigung, www.fininco.com Start Angels, www.startangels.ch Venturix AG, www.venturix.com
WIPO-INSME International Training Program, July 12, 2006 Angel Investment, christophebeaud@yahoo.com
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3. My shareholder agreement is simple and held in one page 4. I feel absolutely comfortable with your company valuation 5. I will have plenty of time to help your company
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