First results of the survey on European early stage venture capital

1. First results of the survey on
European early stage venture capital
Luigi Amati
Vice-President EBAN
and CEO Meta Group
Miguel Trujillo
COO, EBAN

2. THERE ARE NEW ANIMALS IN THE JUNGLE
Last 40 EBAN Members
Networks 13
Affiliate
(individual angels) 6
Funds 4
Seed funds 5
Associate 12
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3. THERE ARE NEW ANIMALS IN THE JUNGLE
5 interesting new associate members
Consultancy company + offline and
Continua Unt. AG online matching platform
Marketplace, event, and business
Etohum angel fund
Networking and education association
ACTE + crowdfunding platform
ClearlySo Social enterprises investment services
DFJ Esprit Venture capital network
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4. THERE ARE NEW ANIMALS IN THE JUNGLE!
4 Interesting “new animals” to follow
1. Co investment funds with BAs
2. Regional seed funds
• Funded by ERDF money (JEREMIE or directly through RDAs)
3. Accelerators
• A combination of seed investment and incubation services
4. Matching organisations
• Support to early stage entrepreneurs with both capital and
mentorship
4
Definitions Source: EBAN‟s
Professional Standard Committee

5. CO INVESTMENT FUNDS WITH BUSINESS ANGELS
Some Examples
• BAMS Angels Fund, Belgium
• Business Angels Seed Fund,
Poland
44
• Seed Rocket, Spain
identified
• Innvent, France
by EBAN • Zernike META Ventures, Italy
• Mountain Partners, Switzerland
• Oxford Technology, UK
• PPM Oost NV, The Netherlands
• The Russian Techology Fund,
Russia
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6. CO INVESTMENT FUNDS WITH BUSINESS ANGELS
EXAMPLE: ARK-ANGELS FUND (BELGIUM)
• Created 2007 • % on exit: Pro rata the
• Size: 6.7 M€ investment amounts
• Max life of the fund: June 2018 • Investments made since
• Type of fund: Public-private inception: 3M€
partnership (50% private-50% • % invested: 45%
government)
• Management: BAN Vlaanderen • Average amount of the deal:
(1 Fund manager 250k€ (incl. follow-up
• Dealflow Sources: BAN
investments)
Vlaanderen • No. Companies Bankrupt: 1
• Investment decision: Investment • Divestments: None yet
Committee • Typical exit: trade sale,
• Sectors: Generalist secondary buyout
• Geography: Flanders
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7. CO INVESTMENT FUNDS WITH BUSINESS ANGELS
SOME MARKET DATA
Evolution # Early-stage Deals
80
70 73
60
50
40
30
20
24
19 19
10
5
0
2006 2007 2008 2009 2010
7
Source: BvD, based on sample 44
funds identified by EBAN

8. CO INVESTMENT FUNDS WITH BUSINESS ANGELS
SOME MARKET DATA
Evolution Market Volume (M€)
70
60
58
50
40
30 31
20
25 21
10
0 4
2006 2007 2008 2009 2010
8
Source: BvD, based on sample 44
funds identified by EBAN

9. CO INVESTMENT FUNDS WITH BUSINESS ANGELS
SOME MARKET DATA
Evolution by Type of Financing
50
45
40
Number of Deals
35
30 Co-investment Fund
25 Individual Business Angel
20 Business Angel Syndicate
15 Seed Fund
10 Other early stage
5
0
2006 2007 2008 2009 2010
9
Source: BvD, based on sample 44
funds identified by EBAN

10. CO INVESTMENT FUNDS WITH BUSINESS ANGELS
SOME MARKET DATA
Top Countries per #Deals (2006-2010)
4% 4%
4%
United Kingdom
8% Germany
France
12% Netherlands
51%
Sweden
Italy
17% Ireland
10
Source: BvD, based on sample 44
funds identified by EBAN

11. REGIONAL SEED FUNDS
• EBAN has identified a Some Examples:
potential estimate of one fund • Jeremie Holding Fund,
per european region receiving Lithuania
ERDF money (aprox. 300 in • Ingenium Emilia Romagna,
Italy
total • Slovenia SPS Fund, Slovenia
• Almi Invest Stockholm AB,
• Most receive ERDF Sweden
money, either through RDAs or • Finext Jeremie co-investment
through the JEREMIE scheme fund, Hungary
• ERP-EIF Dachfonds, Germany
• The EC has no centralised • Andalucía Jeremie Capital
list of regional seed Riesgo, Spain
funds, which makes their • Finance Wales JEREMIE
identification difficult Fund, UK
• Poland KFK Fund, Poland
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12. REGIONAL SEED FUNDS. EXAMPLE
ALMI INVEST STOCKHOLM AB, SWEDEN
• Breakdown Capital Sources: 50% ALMI Foretagspartner– 50%
ERDF
• Amount raised: 12.5M€
• Target: SMEs in Stockholm Region. Any sector.
• Investment stage: 50% Early-stage; 30% Expansion; 20% Later
Stages
• Average investment per deal: 306k€ (1st round) 240k€ (later
rounds)
• Max investment per deal: 1.09M€ (1st round) 1.63M€ (later
rounds)
• Max Equity % acquired: 50%
• Restrictions: Always syndicate with an investment partner (BA or
VC from Sweden or otherwise)
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13. REGIONAL SEED FUNDS
SOME MARKET DATA
Market Volume (M€)
35
30 32
25
20
15
18
10 10
5 6
0 1
2006 2007 2008 2009 2010
13
Source: BvD, based on sample 29
funds identified by EBAN

14. REGIONAL SEED FUNDS
SOME MARKET DATA
Market Volume (M€)
35
30 32
25
20
15
18
10 10
5 6
0 1
2006 2007 2008 2009 2010
14
Source: BvD, based on sample 29
funds identified by EBAN

15. REGIONAL SEED FUNDS
SOME MARKET DATA
Evolution by Type of Financing
40
35
30
Number of Deals
Co-investment Fund
25 Individual Business Angel
20 Business Angel Syndicate
15 Seed Fund
10 Other early stage
Unknown financing
5
0
2006 2007 2008 2009 2010
15
Source: BvD, based on sample 29
funds identified by EBAN

16. ACCELERATORS AND MATCHING PLATFORMS
SOME EXAMPLES
Matching Accelerators
Matching platforms
Accelerators platforms
identified in identified in Founder Boralis
Europe 30 Europe 22 Institute Crealys
With funding With funding GammaRebe H-Farm
attached 15 attached 15
ls MedCrunch
Accelerators that Matching Ignite100 SEED
take equity platforms that take CAPITAL
Seedcamp
shares 11 equity shares 10
 Startup SICS Seed
Bootcamp Accelerator
StartupYard STING
 White Bear Business
Yard Accelerator
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17. ACCELERATORS AND MATCHING PLATFORMS:
MARKET DATA
Top 10 countries
by number of accelerators
and MPs
UK 10
Italy 6
Whole Europe 4
Finland 4
Ireland 4
Spain 3
Netherlands 3
Czech Republic 2
France 2
Sweden 2
% of total in Europe 75%
Source: EBAN
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18. ACCELERATORS AND MATCHING PLATFORMS:
MARKET DATA
# of accelerators and matching platforms
per period of establishment
13% 8% 2%
1999 - 2000
34% 2001 - 2005
43% 2005 - 2009
2009 - 2011
Not specified
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Source: EBAN

19. ACCELERATORS AND MATCHING PLATFORMS:
MARKET DATA
Funding information
38%
58% Accelerators with funding
attached
Accelerators with no
4% funding attached
Not specified
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Source: EBAN

20. ACCELERATORS AND MATCHING
PLATFORMS: MARKET DATA
Breakdown by amount of funding
No funding
4%
Not
specified <50k
39% 38%
Variable 100 - 50 - 100k
4% >250k 250k 4%
4% 7%
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Source: EBAN

21. ACCELERATORS AND MATCHING PLATFORMS:
MARKET DATA
Accelerators involvement by sector
2
ICT
25 Bio-engineering/Health
38
Cleantech
Hi-tech
E-commerce
18
Services
Source: EBAN 7
6 6 FMCF
21
FMCF: Fast Moving Consumer Goods

22. EXAMPLE:
POLITECNICO DI MILANO’S INCUBATOR
 Country: Italy
 Year of establishment: 2000
 23 companies in
incubation as of March
2011, both start-ups and
spin-offs
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Source: websites

23. EXAMPLE:
BORALIS ACCELERATOR
Sectors of
Success stories
interest
 Country: Netherlands
 Year of establishment: 2009
E-commerce
 Typical funding: 50,000-
100,000 EUR
On-line event
organization
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Source: websites

24. EXAMPLE MATCHING PLATFORM :
LE CAMPING
Country: France
Year of establishment: 2010
 Typical funding: 4,500 EUR
per project
 Acceleration programme:
Sept – Dec 2011
 Plan for growth: Dec 2011
– March 2012
 Media Day: where teams
present their projects and
growth strategies
 Mentoring programme
included
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Source: websites

25. EXAMPLE MATCHING PLATFOM:
WHITE BEAR YARD
Country: UK
Typical funding:
10,000 - 250,000
GBP
Mentoring
programme included
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Source: websites

26. FINDINGS
• Yes, there are “new animals” in our "jungle“!
• “New animals” are increasingly appearing on the
market.
• Their numbers (in our limited sample) exploded
in 2010 but real growth rate will take more
research and years to be judged.
• “New animals„ “ most active market is UK.
• EBAN is willing to be open minded and inclusive
with these "new animals", provided that they
follow EBAN‟s good practices
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27. CONTACT
EBAN
Secretariat
Rue Vautier 54
1050 Brussels
www.eban.org
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