Transcript EBAN & AfricaBAN – Baybars

Incubating
Africa BAN – African Network for Business
Angels, Seed Funds and Early Stage Market
Players
Baybars Altuntas – EBAN Vice-President
OBJECTIVE
Incubate the African Network for Business Angels, Seed
Funds and Early Stage Market Players
TERMS
• Inspire, Facilitate and Enable national, regional and
international cross-border early stage investment ecosystem between Africa and Europe
• Incubation period of up to 1 year with the ambition of
spinning out a partner organisation
• Provide a complete service offering to meet investors’
and network managers’ operating needs
The Context
Africa is a hot-bed for innovation and a source of world
changing solutions
To Realize the potential of the continent’s most promising
entrepreneurs resources need to be unlocked i.e. the
required network, knowledge and capital
The VC4Africa Community is a global peer-to-peer network
where entrepreneurs and investors come together to build
great African Success stories
VC4Africa’s survey
Combined, 92 ventures that participated in VC4Africa’s survey
were successful in securing nearly USD $12,000,000 in funding
By the second operating year, 64% of the ventures had
succeeded in generating revenue
75% of the ventures that join VC4Africa are pre-revenue
startups. 25% join as ventures seeking growth and expansion
capital
83% of the ventures registered on VC4Africa have an urban focus
vs. 17% that have a rural focus
VC4Africa’s survey
On average, startups registered with VC4Africa secured USD
$80,000 in funding vs. expansion companies that secured USD
$237,000
Ventures with an urban focus secured less than ventures with a
rural focus. Where the former secured USD $119,000 the latter
secured nearly USD $166,000 on average
There is about an 75/25 split for Commercial vs. Grant funding
the companies have been able to secure to date
VC4Africa’s survey
Ventures are improving their revenue performance over time.
For example 57.1% of the ventures registered in 2010 show less
than USD $5K in revenue. 43.8% of those same ventures expect
to generate more than USD $50K in 2013
It is clear the companies are growing in size and adding full time
positions (FTE’s) year on year. By 2012 the companies registered
on VC4Africa employed a combined 449 people. By 2013 the
same companies expected to increase their combined staff to
2,263 FTEs
VC4Africa’s survey
2011 looked like a down year for most companies and there
might be a correlation to broader economic factors i.e. The
global recession
It might be true that companies secure a higher % of grant
funding at the earlier stages of their development, but the
evidence is not conclusive
It will be interesting to see what trends emerge given larger data
sets showing how company’s mature over longer periods of time
VC4Africa’s survey
The mean and average value of invested capital per venture
differs considerably. This implies a significant impact due to a few
outliers. Therefore these outcomes have to be treated carefully
The top five investment sectors consists of: Technology & ICT,
Internet & Mobile, Energy, Agriculture and Retail
In the top five investment sectors the average investment per
venture ranges between 100K and 250K, agriculture and energy
being more capital intensive
EBAN/ABAN Incubation Areas
Business
Angels Club
Development
Training
ABAN angel
investment
immersion in
Europe
Resources
Business Angels Club Development
Business Angels Club development guide
Co-Development of the EBAN/ABAN joint guide for the development of
business angels club in the region. A practical guide to set up, grow and
increase performance of networks based in success stories adapted to
the local and regional situation and momentum.
Standard documents
Preparation of a set of documents to facilitate the creation and
management of angel clubs (eg. articles of association, code of
conduct…), and to ease the investment process from both the club, the
investor and the entrepreneur perspective (eg. shareholders’
agreement, IP protection…). Development in partnership with local
lawyer experts to ensure validity in different African countries.
Training
Development of business angels and
business angel clubs as per the experience
of Europe’s most active networks
Investor-friendly public policies (eg. tax
breaks, co-investment funds to be
implemented)
101 Course on Angel and Early Stage
Investment to attract and train early stage
investors
Exclusive 360º interview with leading
business angels from around Europe, the
Middle East, Africa and the world
2-day programmes sparced in
time comprising interaction with
a larger audience of angel
investors and possible visit to
clubs in their local environment
Trainings delivered by EBAN
Members and EBAN Secretariat.
One-week ABAN angel investment immersion in
Europe, November 12-19, 2014
Study Visit of ABAN members to selected EBAN members and
the Winter University
Participation in EBAN Winter University (1718 November, Helsinki)
Visit to Europe’s leading early stage
investment communities and face-to-face
meetings with angel investors, development
agencies, startup accelerators, public/
government representatives in addition to
EBAN Member Cross Border events.
November 12-19,
2014
Helsinki, Finland
Barcelona, Spain
Dublin, Ireland
Nice, France
…
Resources
EBAN/ABAN Website/ Members’ exclusive area
Access publications, research papers and presentations delivered at
EBAN events in the past years as well as all current documentation
Webinars
Participation in EBAN’s monthly webinars on angel investment related
topics. Possibility to host exclusive webinars to ABAN members with
selected speakers
EBAN/ABAN Flash
Subscription of EBAN flash with ABAN highlights
LinkedIn
Participation in EBAN/ABAN LinkedIn Group