Resumen Redes de Angels Inversionistas

Part of a study for MIF (IDB Group)*

Amparo de San Jose IESE Business Angel Network * This study has been carried out by IESE Business School commissioned by MIF (Multilateral Investment Fund, part of the IDB Group). Reproduction of this information is not authorized without the consent of MIF / IESE. Contact partners: Susana GarcĂ­a Robles; susanaro@iadb.org; Amparo de San Jose; adesanjose@iese.edu

IESE Business School The School Since 1957 Campus: Barcelona, Madrid, New York, Germany and Brazil (Sao Paulo) More than 36,000 alumni Ranked: 1st in Open Programs (2011 FT),1st MBA in Europe (2010 The Economist)

IESE Business Angel Network Since 2003 Spin off from training program Not a club type / no fund type Close to 12 million euros invested 48 deals

Network map 28 Networks 4 Argentina 1 Bolivia 4 Brazil 5 Chile (up to 7) 1 Costa Rica*

2 Colombia** 5 Mexico* 1 Panama* 2 Peru 1 Dominican Republic* 1 Uruguay*

Network directory AR Red de antiguos alumnos del IAE AR AR AR BOL BR

BR BR

www.businessangelsclub.com.ar IECYT WWW.iecyt.org.ar Emprende Argentina www.amprendear.org Inversor Global www.igangels.com Red de Angeles Genesis Parte de FUNDA PRO Floripa Angels www.floripaangesl.org Sao Paulo Anjos www.saopauloanjos.com.br Gavea Angels www.gaveaangels.org.br

BR Bahia Angels

Parada

CH COL COL CR RD MEX

MEX MEX

Southern Angels (sin web, parada) Angeles Inversionistas Bavaria www.bav.sabmiller.com Angeles de los Andes - Capitalia www.capitaliacolombia.com Link inversiones www.linkinversiones.com Enlaces (sin web) Angel Ventures www.angelventuresmexico.com Guadalajara Investment Network (sin web) MTY Global Ventures http://mglobalventures.com

MEX INNOVATEUR CAPITAL

www.innovateurcapital.com.mx

CH Angeles de Chile

www.facea.uchile.cl CH Incured Parada CH Chile Global Angels www.fundacionchiles.cl CH Angeles DICTUC www.dictuc.cl CH Angeles del Sur www.angelesdelsur.cl MEX Fundacion E www.fundacione.org PA Angeles de Panama (sin web) PE Grup Invertir Peru www.invertirperu.org PE Grupo INCAPITAL www.grupoincapital.or.pe UR Angeles de Uruguay www.propoeritascp.com

Evolution of angel networks Most networks are 3 to 4 years old. Often no linear evolution, facing difficulties after 2-3 years functioning.

30 25 20 15 10 5 0

2005

2006

2007

2008

2009

2010

2011

2012

BAN existing at the end of year

Network origin No angel promoted, promoted by existing players in the ecosystem incubators, government, foundations ‌ 12 10 8 6 4 2 0

Angels

Organizations

Experts/enthusiast

Number of angels in networks Limited membership (not only in club type networks).

Common objective: increase membership.

EBAN Statistics 14 12 10

8 6 4 2 0

1 to 35

36 to 50

51 to 100

101 to 150

150+

Investment experience Highly inexperienced 18.05%

27.82%

Nada Poca (alguna operaci贸n cerrada)

54.14%

Mucha (varias operaciones cerradas)

Investors’ background Almost non-existing “serial investors” or entrepreneurs turned investors 5.57% 11.55%

33.20%

Company Owners

Retired company owners Large company executives

Independent professionals

25.15%

Family Offices

24.54%

Investment • Total investors 665 across the region • Total investment: 99 deals (2005-2011)

• 70% from 2008 onwards • Total amount 17 million USD (for 64 deals) (applied to 99 deals could be 23 million) • Average 265,000 USD / deal. Excluding one network with large deals average deal would be 140,000 USD / deal

Main source of income Highly dependent of non-activity related sources - Promoters (ecosystem players) 6 / national grants - International

5

- Promoters (ecosystem players) - International / national grants

- 2 networks are mostly investor funded - Club / Fund type

4

3 2

1 0

Public sources

Private Fees for activities institutions and or sponsorship foundations

Investors

Deal flow Type of projects received

Source of projects 25%

Incubators

7

Growth

30%

Universities

11

Startup

Collaborators

8

Seed

Angels

3

Idea 0

2

4

18%

12% 6

8

10

12

15%

8

Number of projects received yearly

6 4 2 0 <50

50 to 100 100 to 200

>200

Matchmaking - Most common investment forums - Individual / group meetings are important - Less frequent on-line methods 6 5

Meetings frequency

4 3 2 1 0 Monthly

Bimonthly

Quarterly Semiannually

Annually

Network activities Current and future services offered by the networks Participation in DD Newsletters, research â&#x20AC;Ś Business plan contest Training investors Coaching entrepreneurs Investment Fund 0

1

2

Future

3

4

Current

5

6

7

8

9

Networksâ&#x20AC;&#x2122; structure Equivalent to full time employees.

Overstaffed or providing additional services?

7 6 5 4

3 2 1 0

0

1 person

2 people

3 people

+3

Management structure costs 6 5 4 3 2 1 0 0 to 50,000 USD

50,000 to 100,000 USD

101,000 to 200,000 USD

+ 201,000 USD

Challenges From “offer side” • Mobilize new investors: – Some older networks are focusing on portfolio companies or departed from a low amount available to invest – Most networks have the need to increase membership to achieve sustainability • Capacity building: – Within investors in networks – Untapped potential investors

Challenges From “demand side” • Improve quality deal flow – Intensive efforts to make companies investment ready – Improve quality at the source (incubators, universities…)

– Through networks

Challenges From the operational side • Access to angels in other regional markets – Request from networks with more mature investees – To achieve critical mass (specially in Central America) • Offer complementary type of financing to investee companies – Through quasi – equity instruments (préstamos participativos)