carlo asquini presents angels for growth

Università Ca’ Foscari

November, 30th 2015

Business Angels&

Angel Investing

30/11/2015 www.italianangels.net 2

Angel Investing …

• The match between:

• Business Angels (BAs); individuals who contribute their time, knowledge, contacts and/or money to growth businesses in exchange for equity or (convertible) debt to be repaid.

• Entrepreneur/ ”start-upper” who needs financing to grow his/her business.


Angels’ qualities …

A BA wants to be present, active and wants to help / facilitate the development of the day by day

activity ... But does not replace the entrepreneur

Business Angels…

Feeling with the entrepreneur and knowledge of technology are essential to make an Investment

A BA is part of a network where information are constantly shared. It 'an amplifier of successes ...

... and any weaknesses!


What are Angels looking for?

• An outstanding Management team

• An exciting idea with a sound business model

• The possibility to help fillingcritical gaps

• High returns

• Exit

• Entrepreneurs and co-investors theydo not trust

• Entrepreneurs that do not financetheir own business and/or did not getfinancing from family and friends

• Absence of at least one full time founder

• Management that asks for too muchall together and/or is not specificabout the use of the funds

• Statements like: • “we do not have competitors” • “the market is so big that there is space for

everybody”

YES NO


10 tips to attract the interest of Business Angels

1. Recognize the difference between Venture Capital and Business Angel

2. You must create a business plan that puts particular emphasis on your sustainable advantage

3. "a good idea" is often not enough to raise capital from private investors: you should work to provide concrete proof that the idea is economically attractive (“idea” vs. “business idea”)

4. You must accept the fact that if you want to raise capital this still requires an expenditure

5. You should contact Business Angel as consistent as possible with your idea

6. Try to recognize what skills need your start-up to success

7. Raise capital is a very long process

8. Recognize that Business Angels are "value-added” investors

9. You must be eye-catching and show all your character

10. Invest your money in your idea


Who we are

Italian Angels for Growth (IAG), the largest Angel Group in Italy, wasfounded in 2007 as a non-profit association, by nine Founding Members.Nowadays IAG consists of about 120 members.


IAG members

Our organization is promoted and managed exclusively by individualinvestors and we operate in order to offer our members the bestopportunities to invest in. The Organization is, therefore, totally apoliticaland independent from specific sources of deal flow, public or private.


How we operate: investment process

PreScreening

Screening groups

Screening committee

Pitch to allIAG

members

Due diligence

Investment

About 400 business plansanalyzed yearly

3 pitchpresented in 5 meetingseach year

“Champion” selection (*)

(*) 5% Carried Interestreserved to the champion

in case of exit


Our investment focus

We invest in Italy and abroad where wework with partners such as other angelgroups or funds

Target sectors

we invest in any sector where we have at least one expert member

Level of innovation

strong proprietary product or process innovation, both in new

and traditional sectors

Investment stage

early stage financing, including seed but above all start-up

financing

Investment amount

from €300,000 to €800,000

Target companiesstart-ups and young companies (up to 2 mil € in revenues) with

high growth potential


From 22.02.08 to 01.04.15

*Esclude la presentazione di Dicembre 2007 e aprile 2015

PassPack, Biogenera, Quotient, Senseor, S5 Tech, Trumedia, Spreaker, Nomesia, Ohikia, On-Sun, WIN, Stereomood, Agroils, Sedidicodici, Margherita, Eugea,

Proxtome, Angiodroid, Musement, Cellply , Lovli, Tok.tv, GiPS Tech, Biobeats, Wineverse, Qurami,

Drexcode, Inventia + 6 invest. Individuali.

BP receivedScreening groups

Rejected by screening groups

Deal closed

2500

533 (21%)

657 (26%)

107 (4.3%)*

67 (2.7%)*

34 (1.3%)

3

Deal Funnel

Soft commitment

Presented to members

In due-diligence & negotiation


Portfolio IAG by industry: amount invested

Medical/Diagnostics; € 2.200.000

Internet; € 1.282.500

Cleantech; € 1.420.000

ICT / IT / HiTech; € 1.997.500

Electronics; € 1.344.000

BioTech / Life science; € 2.090.000

Media / Entertainment; € 659.000

Telecom / Mobile; € 185.000

Other sectors; € 461.000


3

Portfolio IAG by Geography

Piemonte

Lombardia

Toscana

Lazio

Emilia Romagna

Friuli V.G.

Spreaker**Eugea

BiogeneraAngiodroid

Cellply

MargheritaNomesiaS5TechOhikia

MusementLovli

Drexcode

SediciDodici

StereomoodPasspack*

Qurami

AgroilsWIN

*Biobeats

UK/Spagna On Sun SystemsIsreale/USA TrumediaFrancia SenseorUK Quotient*Italia/USA Passpack, Biobeats**IT/USA/DE Spreaker***USA/Italia ProxToMeUSA Tok.Tv, Biobeats

28 Companies

Outside Italy

5

3

6

Calabria 1GiPS Tech

ProxToMe***Wineverse

2

1

Update – April 2015


A total of 45 investiments, 28 first rounds, 11 follow-on rounds and 6 individual investiments.

Our results

Total investments amout to more than € 13M (€24M including co-investors).

Benchmarking trips: 8 (USA x2, Israel, China, UK, Sweden, Slovenia, India,

Germany)

Winner of the 2010 EBAN award for Best Investment in a Social Enterprise

(Biogenera)

Shortlisted for the 2010 EBAN award for Business Angel Group of the Year

Winner of the 2011 EBAN award for Best Angel of the Year (Francesco Marini

Clarelli)


IAG members’ geographical distribution

117 Members

Principato di Monaco 1

Lombardy 58

North - West 8

Emila Romagna 10

North – Central 7

North-East 20

Como 1Cremona 1Bergamo 2

Milano 50Varese 1Monza 3

Roma 12

Firenze 1Pisa 1Prato1 Siena 1

Torino 4Cuneo 1

Genova 3

Udine 7Pordenone 4Trieste 1

Belluno 1Verona 5Padova 2

Terni 1Ancona 1Perugia 1

Bologna 6Modena 2Piacenza 1Parma 1

Outside Italy

Lazio 12

Sicily 1Palermo 1


14% Consultant

19% Finance

24% Entrepreneur

37% Manager

6% Other

IAG members’ background


Portfolio

www.italianangels.net

carlo asquini presents angels for growth

Economy & Finance