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: [email protected].
• 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