SME: EQUITY FUNDING GAP CEI: 25th November 2004

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SME EQUITY FUNDING GAPCEI 25th November 2004

• Anthony Clarke
• Managing Director
• London Business Angels / London Seed Capital
• Director NBAN / President EBAN

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EQUITY FUNDING GAP

• Problems for start up/early stage SMEs to raise
  funds with no guarantees and track record.
• Business Plans are poorly produced.
• VCs reluctant to invest in start ups/early stage
  SMEs.
• Angels are a possible solution.
• European Angel market immature.

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SME FINANCING
GROWTH
CAPITAL NEEDS
IPO
HIGH RISK
Formal Venture Capital
Business Angels
LOW RISK
Friends, Family, Fools
TIME
SEED
START-UP
EARLY GROWTH
SUSTAINED GROWTH
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BUSINESS ANGEL NETWORKS

• Private or semi-public body whose aim is to
  match entrepreneurs looking for equity with
  Business Angels
• Business angels are an old tool
• Business angels networks are new tools

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MATCHING BY THE BAN
Entrepreneur
Business Angel
Contact of BAN
Identification
Business plan evaluation and validation
Training
Confronting offer And demand
Identification of investment priorities
Drafting of business plan summary
Circulation of Business plan
BA added to database
Investment readiness programme
MATCHING
Participation in investment forum/club
Preparation of a presentation
Leverage funding -co-funding -bank loans
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WHAT IS SME INVESTMENT READINESS?

• Knowing your potential funding market
• Having your tool kit ready for investors.
• Knowing your investors
• Knowing when to approach the market
• Understanding the investment process

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WHEN TO GO TO MARKET?

• Comprehensive Business Plan completed
• SME has completed products development stage
• Management has proven track record
• Customer success / scaleable business
• Entrepreneurs understand investors market
• Investor pitch has been prepared

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ready4growth

• Programme of support for start up early stage
  SMEs who are building innovative enterprises
• 450 SMEs involved in 3 member states
• 2 day workshop
• 4 comprehensive reference manuals
• Online virtual knowledge centre
• 3 million Euro programme funded 50 by EC
  Information Society

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ready4growth

• Conference Addressing the SME equity Gap
• Date 13th/14th December 2004
• Venue Int. Press Centre. Brussels
• Register www.ready4growth.com
• Cost 75 euro incl. reception/lunch

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CONTACTS
Anthony Clarke 0044 207 089 2306
www.lbangels.co.uk anthony_at_lbangels.co.uk Re
ady4growth www.ready4growth.com