Business Angels, SMEs and the WBAA

1
Business Angels, SMEsand the WBAA
Presentation by John May WBAA, Co-Chairman INSME
Annual Meeting Dubai, UAE April 21, 2009
2
SME-Friendly Communities
3
What Is An Angel?
A minority equity investment in a strangers
business (usually a start-up) by an accredited
individual (multi-millionaire) who gives time as
well as money to the entrepreneur and gets
long-term capital gain after three, five or seven
years and the only protection is the rule of
law. (USA Definition)
4
Potential Angels in the U.S.
5
Angel-VC MarketsLarge, Complementary
Mostly later stage 3,813 deals 29.4B
25.6B 51,000 deals Mostly early-stage
Early Stage Late
864 Early- Stage
312 Seed/Start-up
2007 VC Investment source NVCA/PWC/VE
2007 Angel Investment source UNH CVR
6
The Angel-EntrepreneurRelationship

• An investment opportunity
• High risk, high reward
• Right sized
• No embarrassment
• Based on an elevator pitch, a plan, a book
• A relationship
• Pitch the person, not the wallet
• A marriage, a divorce
• Mentors, not bankers
• Communicate, communicate

7
The Angel-EntrepreneurRelationship Contd.

• A chance to make a difference
• Will the world be a better place?
• Time is their most precious resource
• I helped to build that
• Intangible benefits unique to relationship
• All shapes and colors (sort of)
• Why are you doing this, really?
• The creative other

8
The Global Future

• 30 years behind venture capital, angels organize
• (EBAN, ACA)
• VCs fleeing early-stage every where
• Cross-border syndicating a trend
• Internet eases communication
• WBAA the next phase

9
The Role of WBAA

• Oct 07 Lisbon conference birthplace
• Founders sign-up Sept 08 (includes ABAN)
• WBAA is launching in 09
• Global meeting place for active angels by country
  and region the logical next step in
  entrepreneurial finance

10
WBAA Founding Members
Paulo Anselmo, IBAN Anthony Clarke, BBAA Albert
Colomer, ESBAN Walid Hanna, ABAN John Mactaggart,
Australian Association of Angel Investors Mannie
Manhong Lui, Center for China Business Angel
Research John May, ACA Fernando Prieto, Southern
Angels Claude Rameau, French Angels Saurabh
Srivastava, Indian Angel Network Honorary
Members Francisco Banha, FNABA Claire Munck, EBAN
11
Memo of Understanding

• Raise awareness across the world of the
  importance and practice of business angel
  investment
• Support members in their reflection, initiatives
  and statements, namely spreading the concept of
  early-stage investing in private companies by
  individuals
• Hold an annual event for the world membership
• Create a web portal to disseminate information
  and facilitate communication among the members

12
Memo of UnderstandingContd.

• To scan, collect and disseminate worldwide
  through the website, relevant information in
  order to pursue worldwide best practices on
  business angel financing innovation and
  entrepreneurship
• Study the feasibility of enhancing cross-border
  investments with the participation of several
  business angels
• Promote sharing of information and knowledge on
  good practices by business angels
• Contribute for the sustained development of
  society, promoting all business angels resources
  available to support innovation and
  entrepreneurship.

13
WBAA Next Steps

• Launch in Dubai at INSME 09
• Grow global membership
• Hold first worldwide congress
• Promote Angel SME relationships