Jacek Błoński

Poznań, January 22, 2008

Business Angels as alternative source of financing early-stage investments

WHO IS AN ANGEL INVESTOR?

Business Angels:

Wealthy individuals

Good business experience

Good contacts and marketing skills

Very often cashed out entrepreneurs or managers

Actively supporting development of the company

BUSINESS ANGELS ON THE RISK CAPITAL MARKET

Low risk

Capital needs

TimeSTART-UP Early stage Expansion

High risk

Friends, family and

fools

Business Angels

Venture Capital Funds

IPO

Growth

Seed

LBA KEY DATA

A group of ca. 50 individual investors associated with LBA, interested in early-stage companies with extraordinary growth prospects, no sector specialization

Typical investment – between EUR 50k and EUR 1.5m

Services provided to investors:

provision of carefully selected business plans, according to individual preferences and investment criteria

Services provided to entrepreneurs:

access to selected group of active investors

Cooperation with Business Angel Seedfund

STRATEGY

LBA has established an extensive angel network in Poland and between 2005 and 2006 finalized 7 investments in different sectors/branches.

350

45

25

7

Ideas screened

Ideas refined in Meetings

Ideas submitted to the Investors

Number of Investments

2% of business plans submitted get financing

Many of the projects submitted to investors came from LBA’s partners

Negotiation process is less formal than with VCs, but also less predictable

COOPERATION WITH BA – BENEFITS

Benefits for entrepreneurs seeking financing from business angels:

Provision of adequate financing, flexible terms

Experience and strategic know-how

Business contacts and relations within industry

PROJECT SELECTION CRITERIA

Experience and competences of the management team

Strong growth potential

Growing market or attractive niche

Competitive advantage

Founders involvement and commitment (also financial)

Stage of company development (preferred existing businesses)

Identified and clear exit options

Business plan and financial projections – coherent and well thought

LEWIATAN BUSINESS ANGELS – TRACK RECORD

Jacek Błoński LEWIATAN BUSINESS ANGELS

www.lba.plTel: 022 845 95 96Fax: 022 845 95 51