Cyprus Business Angels Network

November 20th 2013 Andreas Koupparis, Chairman

CYBAN

Who we are

• The only non-profit Angel Investment Network in Cyprus

• We connect innovating fast growth companies to equity finance

• We select on avg. 10 cutting – edge businesses to pitch to our members each year through Company Presentation Events

• Full Member of

CYBAN

Lobbying

• CYBAN constantly lobbies for the benefits

of its members:

– to create a favorable economic/tax

environment for angel investing (and exit)

– to create mechanisms for a healthy deal flow

that will allow us to select world-class

investment opportunities

• Business Angels are individuals who invest on their own, or as part of a syndicate, in high growth businesses.

• In addition to money, Business Angels often make their own skills, experience and contacts available to the company.

• A typical Business Angel makes one or two investments per year in a three-year period.

Angel Investing

Introduction

• Business Angels would generally invest between €10,000 and €250,000 in any one investment in return for an equity share in the business.

• Business Angels invest across most industry sectors and stages of business development, but especially in early and expansion-stage businesses.

Angel Investing

…continued.

• Provides members with expertly screened deal

flow, selecting the 10 - 12 most

innovative businesses from the 100+ business

plans we will review each year.

• 4 Company Presentation Events each year

• 2-3 Investment Workshops each year

• Annual CYBAN Event with high-profile speakers

CYBAN Membership

benefits:

• 7 things you think you know about Angel

Investors

• Froodies, Germany – An Angel funding

example

• Experienced Angel Investor from Finland

VIDEOS

Enjoy!

• Cyprus Registered Company

• Seeking between € 25,000 and €500,000 equity

finance

• Most Stages/Sectors Considered

• Attractive market

• High Growth Business

• Sustainable competitive advantage

CYBAN Investment Criteria

• Potential for explosive growth

• Strong management team

• Validation within the market place

• Can be taken to market with little or no further

development

• Providing an Exit in the medium term

CYBAN Investment Criteria

...continued.

• Step 1: Send your executive summary (max. 3 pages) to: companies@cyban.com.cy.

• Step 2: You will be notified within 2 weeks if you have passed the first evaluation phase or not.

• Step 3: If you have passed you will be asked to send your full business plan.

• Step 4: Within the next 2 weeks you will be invited to attend an initial meeting.

• Step 5: If all goes well, you will be asked to sign a presentation letter.

Application Process

9-step process

• Step 6: Training Sessions

• Step 7: Company Presentations Event

• Step 8: Investor meetings

• Step 9: SUCCESS!!!!

Application Process

… 9-step process

• You won't get past first base with angel investors if

you can't address four areas: An angel investor will

look at these 4 things:

– is the business idea simple enough for me to understand

and buy into?

– does it solve a problem or meet a need?

– is it a big enough market and customer base for the

idea?

– do you have the right people on your team to pull it off?

Pitching to Investors

Address 4 areas

• The angel investors’ whole focus is on trying to size

up YOU, the entrepreneur.

• Looking at how much passion, wild enthusiasm

and sparkle in your eyes you genuinely have for your

product or service.

• Never say "we're passionate" or "our product is

great." People just ignore that. Such messages must

be implicit.

Pitching to Investors

Impress with your Passion

• You must not do is seem nervous and apologetic.

If you've truly made something good, you're doing

investors a favor by telling them about it.

• Smart investors can see past superficial flaws.

• Investors are looking for raw talent. All you need

to convince them of is that you're smart and that

you're onto something good.

Pitching to Investors

Be confident, not arrogant

• What's the No. 1 mistake entrepreneurs make

during the pitch?

– Rambling on about their technology or business rather than

the financial opportunity—how you and the investor will

make lots of money together.

• Two thirds of new entrepreneurs that pitch in front of

investors, don't show them how they are going to

make money.

Pitching to Investors

Mistakes to avoid

• Anticipate questions inventors might ask: – How large is your market?

– Who are your competitors?

– Why is your product better than what is already in the market?

– What is your customer acquisition strategy?

– How much money have you made?

• Don't get thrown off by a tough question. It's better to say let me get back to you on that then to fumble for an answer.

Pitching to Investors

Be well prepared

• You need an exit strategy; how the investor will

make his or her money back.

• Investors don't want to be your partner for life

• Exit strategies:

– Trade Sale

– IPO

– Capital Reduction (through accumulated profits)

Pitching to Investors

Exit Strategy

ANNOUNCEMENT!!

CAPITAL IMPACT PROJECT

First Common Workspace in Cyprus!! Hackspace, StartupLab, Meeting

rooms, Mentoring, Training, Incubation & Accelerator Programs

& GREAT COFFEE!!

Thank You!

CYBAN