Summer University 2004

o Session: Do angels always like to act through BANs?

o Name: Paolo Anselmo

o Organisation: IBAN - Italian Business Angels Network

o Relation with BA activity: President of IBAN

Do angels always like to act through BANs?

Paolo Anselmo

Malta, 6 May 2004

66

132

154

176196

0

50

100

150

200

1998 2000 2001 2002 2003

Source EBAN 2003

BUSINESS ANGELS NETWORKS IN EUROPE

BUSINESS ANGELS NETWORKS IN ITALY

0

5

10

0

2

4

6

8

10

1998 2000 2004

Source IBAN 2004

BAN Bologna

BAN Toscana

BAN Umbria

BAN Sardegna

BAN Lazio

BAN Campania

BAN Puglia

BAN Calabria

BAN Lombardia

BAN: the Italian photography

10 Regional BANs

North West BAN

BIC Vallée d’Aoste

for the whole Italian territory

1 National BAN

BAN = Business Angels Network

A “marriage agency” where investors can meet projects & companies

A channel of communication towards the regional stakeholders

A dedicated support to the entrepreneurs: “become investment readiness!”

Services provided by BANs:

“value added that the BANs bring to investors – entrepreneurs”

Business plan training activity & advising (legal, fiscal, etc.)

Screening BP process before someone is listed

Deals & enterprises support

SME’s regional marketplace (risk & debt capital + grants/loans )

Identification and recruitment of BAs in their region

Matching between entrepreneurs & investors

Encouraging cross – border & foreign investments

o IT/FR/UK: TEEE-Inn Project

o IT/CH: Valle d’Aosta - Valais

o IT/EC: Gate2Growth Project

BAN: the Italian interpretation

Inquiry on a collection of 76 investments, realized by

italian business angels (Seconda Università degli

Studi - Naples)

Inquiry on models of organization for Business

Angels Networks, joined IBAN (ISTUD)

Analysis of equity demand, come to Business Angels

Networks, joined IBAN (ISTUD)

Italian applied research (2003)

Some information about business angels…

N° analysed investments 76

N° disinvestments 17

95%

50 years old

Method Direct inquiry

E-mail inquiry

N° interviewed investors 41

% male

Average duration of closed investments

Medium age

3,5 years

Other information about business angels…

Wealthy informal investors which directly look for

investment opportunities

Industrial (30%) or professional origin

Investment size (own wealth): between 50.000 € and

250.000 € in the majority of investments

Investments in start-up (44%) and in early stage (28%)

“Hidden” investments, without any structure of

intermediation

Italian business angels

Knowledge, experience, management skills and networking;

High costs for investment selection

Due diligence:

o Specialized investment valuation: < adverse selection

o Post - funding control: < moral hazard

Information sources about

investment opportunities

N° (multiple answers)

% total answers

% diffusion on business angels

(multiple answers on 41 investors)

Informal 64 50% -

Friends 17 13% 41%

Business Associations 8 6% 20%

Personal Researches 14 11% 34%

Other entrepreneurs 18 14% 44%

Media 7 6% 17%

Istituzional 42 34% -

Professionisti 17 14% 41%

Banks 2255 20% 6611%%

Organizzate 11 9% -

BANs 7 6% 17%

Club of investors 4 3% 10%

Other sources 9 7% -

Total answers 126 100%

Conclusions …

Italian business angels

Active Business Angel

Latent Business Angel

Business Angel Networking

New model: “Club of Investors”

Profit oriented

Direct and skilled investors, joined Club

Co-investment opportunities

Open themes for italian venture capital development

Roles of government authorities and policy makers

BANs repositioning

“Banking world” connections