fiban's angel network for entrepreneurs
DESCRIPTION
Finnish Business Angels Network (FiBAN) is a national, non-profit association aiming to inspire private investments made in potential early stage companies. FiBAN strives for high-quality deal flow by co-operating with various private and public growth supporting entities. FiBAN acts as a link between growth companies and investors by providing companies with direct visibility to investors and aims to facilitate investment rounds in general.TRANSCRIPT
BUSINESS ANGELS? Private startup investors
FiBAN is a association of private investors that aims to improve the possibilities for private persons to invest into unlisted potential high-growth companies. • A non-profit, private investor driven
association • Deal flow and investor match-
making • Inspires investment syndication • Trainings and seminars • Best practices and guidance
BUSINESS ANGELS Business angels are private individuals who invest their own money in high potential startups in exchange for a share in the company, and also contribute their expertise in business management and their personal network of contacts. www.eban.org
VIDEO www.fiban.org/video
✓ Invest both knowledge and capital ✓ Early-stage high-risk investors ✓ Make both active and passive investments ✓ Invest generally €10K- €100K per deal
BUSINESS ANGELS
ANGEL PROFILE
LOOKING FOR INVESTMENTS
Active 30% 10%
Passive 50% 10%
Unexperienced Experienced
INVESTOR EXPERIENCES
• 4.8% of all Finnish companies are high-growth companies, these companies create +50% of all new jobs!
• There are approximately 300-600 companies aiming for high-growth yearly.!
FINNISH HIGH-GROWTH
TOPIC
ANGEL NETWORK STATISTICS
EUROPE US FINLAND Networks 400 340 3
Estimate # of angels 75k 259k 500
Total estimate invested annually by angels (€) 3-4 billion 18 billion 50 milj.
VC Investments in seed and start-up/early stage
Circa 2 billion 6 billion 60 milj.
BUSINESS ANGEL OFFERS
Knowledge Networks Capital
Active
Private investments made in unlisted early-stage companies aiming for high-growth and looking for private investors.
Passive
ANGEL-FUNDED FIRMS ARE MORE LIKELY TO ✓ survive longer ✓ raise additional financing ✓ show improved venture performance and
growth ✓ benefit from features like mentoring and
networks
HIGH-RISK INVESTMENTS
GROUP INVESTING - SYNDICATION First angel investments are recommended to be done in a group to gain experience and share risk. www.fiban.org/syndication
10% succeeds well
40% payback
50% fail
PROFITABILITY
BUSINESS ANGEL INVESTMENT
BUSINESS ANGEL INVESTMENT
SCREENING INVESTMENT
GROWTH EXIT
Evaluation Due diligence Agreement
Negotiation Solo vs. group Contract
Knowledge Networks Capital
Investor goal! Sale/Banckruptcy
Average angel investment last 8 years.
ANGEL INVESTMENTS • Average investment 20 000 € • Scale 5000 – 1 000 000 € • Usually several investment rounds
Investment amount grows during time Risks and profits decline
Com
pany
resu
lts Round 1
Round 2
Round 3 Round 4
Round 5
Round 6
ANGEL INTEREST? Several things matter but two crucial factors: • SCALABILITY
Is the idea scalable? International potential? Growth hunger?
• TEAM
A-team with a B-product is better than a B-team with an A-product.
STARTUP PROCESS
• Free-of-charge • Includes investor
feedback • Links to growth
resources • Visible for
3 months
• Companies chosen to pitch
• In cooperation with Finnvera
• Short presentation to wake investor interest
• Sector-based and regional events
INVESTMENT/ SYNDICATION
• Investor
evaluation (due diligence)
• Alone or in group
• Capital and/or sweat equity (knowledge)
PITCH
SCREENING
SUBMIT
ca 1 week
ca 3 weeks ca. 6 weeks
www.fiban.org/submit
ca 2 – 4 months
VALUATION • Rule of thumb
– Healthy business idea 100 000 €. – Proof of concept 100 000 €. – Skillful team 100 - 200 000 €. – Management / Owner/ Advisor 100 000 €. – Business validation (sales) 100 000 €.
• Comparison to other companies and markets
– Previous investments – Company value of succesful companies
• Prognoze of expected cashflow
GET CONNECTED www.fiban.org/submit • Free of charge, screening every 2nd week • Direct visibility to all of FiBAN’s business angels • Goal to give feedback to every case and give pitch opportunity www.fiban.org/events • Find out where and when our angels are around www.fiban.org/presentations • Useful stuff to prepare yourself with angel meetings www.fiban.org/newsletter
HIGH-GROWTH PARTNERS
CONTACT BOARD 2014 Riku Asikainen, pj. Jaakko Salminen, vpj. Anne Berner Juha Kurkinen Aarne Sipilä Pekka Vartiainen REGIONAL ANGELS Petri Lehmuskoski, Turku Olli-Pekka Kulmala, Tampere Kari Ollila, Pori Raimo Kuismin, Oulu Ari Korhonen, Lappeenranta Sami Etula, Jyväskylä
ADMINISTRATION Jan Oker-Blom, MD [email protected] (+358)405517551 Claes Mikko Nilsen, Coordinator [email protected] (+358)504913001 BECOME AN ANGEL MEMBER? www.fiban.org/join SUBMIT PITCH www.fiban.org/submit
