THE NEXT SOCIETY Innovators and Partners Gathered in Cairo for a Great Round of Events

  Every year since 2016, DanBAN has invested a triple digit million kr figure into start-ups and early stage businesses. – and the expectations for great returns are just as high as the investment level.
At the Annual Business Angel meeting on June 26th, around 250 Danish and international business angels visited Odense Congress Center in Denmark. It was also the day where DanBAN revealed the numbers from the DanBAN Member Survey 2018, with a response rate of 100 percent.

  The Danish Business Angels members survey shows that the private investors for the last three years have contributed with more than 70 million Euro Euro into early stage businesses. Concurrently with this Danish SMEs, according to the SME barometer, also have increased their revenue by just over 15.3%.

  While the Danish angels have invested heavily in startups in the recent years, the number of so-called “exits” have dropped from 43 last year to only 11 this year. But even though the number of exits have dropped, the returns achieved have certainly not. Where Danish Business Angels in 2017 saw return multiples of their investment of factor three; in 2018 they almost doubled their returns to record a five times MoneyBackMultiple.

  “It seems that many of the 500 of the DanBAN members portfolio companies are in growing healthily and thus the outlook is some really promising exits at a later stage. I believe that the decreasing number of exits is a sign of higher seller expectations regarding exit returns. This suggests that the expectations for profit is top notch – you only exit when you are offered a really good price by the buyer,” says Jesper Jarlbæk, president of DanBAN.

  The survey also shows that the proportion of active angels with at least one investment in the past year has fallen slightly from 2017 to 2018. However, the number of active members is still above 60% and thus is still more than twice as high as the EU average.
“In an international context, we have a very active investor network that is constantly growing. Like many other investor networks, we find that more and more angels are emerging in Denmark, which is clearly reflected in our record membership increase of 24% in 2018. Denmark has made its mark on the world map with several examples of startups that have achieved international recognition and success,” says Jesper Jarlbæk.

  The “angels” not only invest money but also time, typically in small unlisted entrepreneurial companies or startups. Each member of the network has, on average, co-ownership in six portfolio companies.
“The angels are especially important in the early stages of a startup journey. Not only do they contribute with capital, but also with strategic experience and a wide network of invaluable contacts. In the coming years, I also believe that we will see the angels drive a good part of the investments behind the green transition, where Denmark is a pioneer,” says Jesper Jarlbæk.

  8 events in 8 different European countries: CEE Unlimited, initiated by the Austrian Angel Investors Association, is more than an event series – it’s the first step towards a powerful ecosystem.
With 3 events already organised in Bucharest, Sofia, and Zagreb, the initiative serves to connect angel investors, VC funds, corporate venture capital funds & the most promising startups in Central Eastern Europe, creating a true cross-border market and releasing the full potential of the CEE region. Each event consists of capacity building sessions and a pitch competition, with participation from a diverse pool of local startups.

 EBAN got in touch with EBAN CEE Coordinator and AAIA Managing Director Lisa Fassl, who is heading up CEE Unlimited to learn more about the initiative:

  – What is the CEE Unlimited project about?
The aim of CEE Unlimited is twofold: Firstly, it’s about creating value for the people in the region by connecting angel investors, VC funds, corporate venture capital funds & the most promising startups – and therefore helping to boost local communities. The big vision: creating a true cross-border ecosystem – with stakeholders who know and trust each other and that will eventually start to invest across borders. Secondly, it’s also about raising awareness for CEE itself, as a promising but most of the time overlooked part of Europe with great talent and hungry founders.
For 2019 we set up an event series consisting of eight countries (Austria, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania & Slovenia) in which we’ll host local events for investors and ecosystem stakeholders. Each event consists of a capacity building session related to the topic on how to be a successful investor and a pitch session featuring local startups. The winners of the local competitions are invited to join us for Investors Day 19 on November 14th in Vienna – where the overall winner will get 10,000€ cash, 50,000 € in media volume by IP Austria to be used for TV advertisement on the channels of the Media Group RTL, and a two-month stay in Vienna by the Vienna Business Agency.

  – How will it help develop entrepreneurship and angel investing in the CEE?
We need to be realistic: Establishing a cross-border ecosystem doesn’t work overnight. CEE Unlimited is a good start to kick-off something bigger and we’re currently setting the base: getting to know people, figuring out who to work with and creating trust among the players. Therefore, it’ll probably take some time until we’ll eventually see big outcomes. Nevertheless, we already see an impact on a smaller scale:
– Angels already actively connecting and working with VCs: bridging these worlds was pretty important to us, as we are all aware of the issue of raising bigger funding rounds. This is also one of the reasons why we asked Speedinvest to join CEE Unlimited and to “translate” between different types of investors.
– CEE startups entering the German-speaking market: We’ve seen that Austria can be a great bridge between CEE and Western Europe, as it’s a good test market for new products. Some of the first startups are already in touch with Austrian angels and government organisations that support their market entry.
Seeing these small success stories is great and a good motivation to reach the next goal: The first cross-border deal coming out of CEE Unlimited.

  – What is the most promising thing about the early stage ecosystem in the CEE region?
It’s definitely the people. We see many creative, well-educated and extremely passionate founders that are creating products that solve real-world problems. Many of them already gained a lot of professional experience both in their home countries and abroad, their products are often in the science, health or fintech area. They really understand the need to think big and they take opportunities very seriously – which is why we have seen pitches that are way above average.
In addition, we also see the potential on the investors’ side: Angel investing is becoming a thing and the awareness is definitely on the rise – which is why it’s essential to connect early with these future angels and to support them in the early days of their careers.

  – How can EBAN members get involved in CEE Unlimited?
Some EBAN members are already heavily involved in CEE Unlimited, as they are our main partners for the local events and therefore official co-hosts (big thanks!). Other than that, we’re happy to see many EBAN members at those events, because the vision of creating a true cross-border ecosystem can only become reality when being supported by as many people as possible.
In addition, we also invite everyone to join us for the final showdown of CEE Unlimited: The Investors Day 2019 on November 14 in Vienna where we’ll discuss and hopefully shape the future of Europe – not only in terms of angel investing. More info: www.investorsday.at
 
Find out more about CEE Unlimited here.

   – Phorest named most successful business financed by early stage investors at the European Business Angels Network Congress
 – Eight of the original HBAN investors achieved an average return of more than 10 times their original investment
 – The company now employs 200 people in Ireland, the US, and Germany
 – Accolade marks HBAN’s sixth EBAN award in seven years

HBAN, the all-island organisation responsible for the promotion of business angel investment and a joint initiative between Enterprise Ireland, InterTradeIreland and Invest Northern Ireland, has announced that its winning streak at the EBAN Annual Congress has continued. Phorest, the HBAN-backed salon software company, was named most successful business financed by early stage investors at this year’s event in Helsinki.

  The award – presented in front of an audience of 530 investors, entrepreneurs, VCs, corporates and innovators from 35 countries – celebrates businesses that have grown into successful, international enterprises since receiving early-stage funding. It recognizes companies that have achieved a positive exit for investors and whose growth has been greatly impacted by their early-stage investment.

  Alongside an equity investment from Enterprise Ireland, Phorest raised €700,000 from 12 HBAN angel investors in two funding rounds in 2011 and 2013. This paved the way for further success and in June last year, Phorest completed a third round of investment, receiving €20 million from US investment firm Susquehanna Growth Equity (SGE). As a result, eight of the original HBAN investors were bought out, each receiving an average return amounting to 10 times their initial investment.

  The company’s software is now used in more than 5,600 salons in six countries. It has become the market leader for salon software in the UK and Ireland, while its market share in the US, Germany, and Australia is rapidly growing. To meet increasing worldwide demand for its technology, Phorest now employs 200 people in Dublin, Cologne, and Philadelphia.
Phorest’s angel investment came from HBAN’s Bloom Equity and Boole Investments syndicates, with Pat Garvey of Bloom Equity, now chairman of Phorest, acting as lead angel.

  The award is the sixth won by HBAN at the EBAN Congress in seven years. In 2013, the network was named EBAN Federation of the Year, followed by DecaWave’s accolade of most successful business financed by early-stage investors in 2014. HBAN partner, Cork BIC, was the best performing EBAN new member in 2015 and in 2017, HBAN scooped the best business angel week award. Last year, HBAN was named the most globally networked organisation at the awards ceremony.

   Ronan Perceval, CEO and co-founder, Phorest, said: “We are delighted to win this award as it reflects how far we have come and the vital role business angel investment has played in our success. Our initial funding allowed us to develop the technology that is now the fabric of our business today. But not only that, taking on external funding also changed us as an organisation; we had people who were invested in our success and that drove us to implement the organisational structures we needed to succeed and scale. We wouldn’t be where we are today without our angel investors, in particular Pat Garvey, who has played such an important role in our growth that he is now our chairman.”

   John Phelan, all-island director, HBAN, said: “It is fantastic to see Phorest and its investors get recognition with this award. The company’s success reflects the enormous impact angel investment can have on a business in those vital first years. The directors not only used the investment to improve Phorest’s services, but they also took advantage of the wealth of expertise and knowledge that was at their fingertips to become a better, internationally scalable business”. “It means a lot to us at HBAN to see the work we do with our investor members and investee companies recognised internationally. Angel investment is vital to our economy and we will continue to work hard to support the start-up community on the island of Ireland by helping businesses become the kind of companies that angels want to invest in, as well as introducing them to the people who can significantly impact their future.”

The Global Impact Investing Network (GIIN) published the ninth edition of its Annual Impact Investor Survey. Comprising data and insights from 266 of the world’s leading impact investors, the report provides in-depth analysis of market activity and trends, covering topics such as: industry challenges; impact measurement and management; financial and impact performance; indicators of market growth; and capital allocations by sector, geography, and instrument. Additionally, this year’s report provides new data on key market topics, including human resources; diversity, equity, and inclusion; and the role of government and policy.

Download the Report

The Science and Technology Angels Network (STAN), initiated by the Foundation for Armenian Science and Technology (FAST), has signed their first investment contract with an Armenian startup Apaga, a platform that allows customers and retailers to monetize recycling.
Apaga co-founders Mikhail Zamskoy and Cedric Solms commented that they had notable support from FAST when the startup went through the foundation’s incubation cycle in September 2018.
“We are happy to be the first startup to raise funds from STAN investors. The angels want to join our initiative and support us financially, invest their time and experience in Apaga. We are very excited,” noted Cedric Solms.
The invested funds will help Apaga add a mobile platform and new functions to their capacities to build a stronger green community. A part of the investment will be allocated to marketing: the startup plans to develop a culture of recycling in Armenia and educate people about the topic.
According to co-chair of the STAN network, Ruben Harutyunyan, the angels assess how compliant and feasible the startup’s ideas are with members of the FAST team.
“We also take into account the experience and enthusiasm of the team and look at how interesting their initiative is. The process takes several stages to complete. First, we study the general idea and capacities of the startups, and then we make a detailed examination. Apaga developed in the FAST incubator and went through the entire process to get investment. That takes time,” stressed Harutyunyan.
FAST co-founder Artur Alaverdyan believes that Apaga has an innovative general idea and a unique business model.
“It also solves a serious social issue. Apaga’s model can be monetized and if it’s successful, it can be applied anywhere,” he said.
FAST Vice President of Innovation David Bequette mentioned that the preliminary work with Apaga, which preceded the investment, lasted for around 3 months. Bequette hopes that the process will be cut down to one month for the next investments.
“We want to instill in Armenian companies a trend of investment in startups registered and operating in Armenia. We want companies that can solve global challenges, but are proud to call Armenia their home base.”
STAN gathers 22 individual investors ready to invest in seed stage science- and technology-backed Armenian startups. Through its entrepreneurial projects and acceleration programs FAST has affected more than 200 startups and budding entrepreneurs to boost the creation of science- and technology-backed startups in Armenia.

The event, held on the 25^th of April, was organized by Inspiralia Group and hosted by Wayra, Telefónica’s startup incubator.
Start-ups need finance and customers. But are they willing to fight for it in a Boxing Ring? Inspiralia Group put twenty promising start-ups from twelve countries and different sectors to the test by organising a fierce pitching competition. Contestants were put under time pressure to pitch their business ideas in short battles to a world-class jury and a demanding public that voted for their favourites. The result was an engaging, fast-moving and intense event that crowned three winners, who will continue their fights at the world final in Berlin between 17^th and 20^th of June. There, contestants from 100 countries will get a chance to expose their businesses to create valuable relationships, focus on deal-making and get a shot at the available 10M€ venture fund that is awaiting the winners.

The Winners of “Get in the Ring Madrid”

 
Swap Language is a platform created to break down language and cultural barriers everywhere in the world. It allows you to find a language partner for free. It is the best way to learn and practice a language with a native speaker face to face in your own area.
NUMAFERM designed a process that uses E. Coli to efficiently produce tailormade peptides. This cost reduction opens the possibility to mass production of biopeptides for very diverse uses such as adhesives, functional coatings, biocides, cosmeceuticals, etc.
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Why you should “Get in the Ring” with Inspiralia Group

“This energetic way of pitching is challenging, fun and allows you to meet tons of new people”, says a Swap Language representative. “Get in the Ring” is a boutique event tailormade for start-ups with great business models and teams that want to meet experienced entrepreneurs and corporates, create commercial alliances and look for public and private funding all with the support of Inspiralia Group. “Being an entrepreneur and having started a business myself, I understand what company owners are going through and what their needs are in different stages of their journey. “Get in the Ring” allows us to create a platform where we can make a difference by helping them develop solutions that will make a positive impact on Society,” commented Alfredo Sánchez, Inspiralia Group CEO.
If you like the format and would like to receive news about forthcoming “Get in the Ring” events in Vienna 2020, Madrid 2020 and the US, follow us on LinkedIn and sign up to our newsletter. Sign-up here.

StartupYard, the longest running tech startups accelerator in CEE, announced its 11th acceleration round. Startups can submit their applications until September 30. The new round will again focus on high-tech area. Startups will have another chance to succeed in a truly global competition. A group of up to 10 startups will receive an initial investment of 40,000 EUR each and intensive training from top industry mentors. So far StartupYard accelerated 72 companies from 16 countries. In total, its startups raised more than €30m.

Register Here

 
StartupYard, Prague-based seed accelerator with the longest track record in the CEE, announced the opening of its new acceleration round. It will focus mainly on startups from the high-tech industry, working in Artificial Intelligence, CyberSecurity, Cryptography, Augmented and Virtual Reality, IoT and Robotics.
Startups from the whole world can submit their applications until the end of September 2019. The 11th acceleration round will then start on November 18 th 2019 and will run for three months. In February 2020 it will be followed by an international industry conference DemoDay, where startups have the opportunity to meet potential investors and corporate partners.
The aim is to select up to 10 top startups from the submitted applications. Selected founders into the program will receive an initial investment of 40,000 EUR each as well as intensive training from 157 top industry mentors, who come from various business areas (incl. finance, management consultancy, strategic management, HR, marketing, etc.).
“Prague is becoming more and more attractive for tech startups. Founders from across the globe are attracted by a unique ecosystem we managed to create in the last 9 years – connecting startups, investors and corporations. We are facing a growing interest from international startups in our program, while it is encouraging to see that our alumni succeed in a strong global competition,” said Cedric Maloux, director of StartupYard.
The previous 10th round was truly global and confirmed the growing interest from startups and investors. 154 startups from across the world applied, while 7 startups from 7 countries and 3 continents were selected to join the acceleration in Prague and gained the opportunity to present their strategies to 320 investors and industry experts in a successful Demo Day conference.
“Our role as a seed accelerator is to invest in people and ideas whose time is yet to come,” said Cedric Maloux, who marks his 6th year as head of the accelerator. “Our role is not only to identify startups with high potential, their development, and connection with investors, we also aim to build long-term relationships between corporations and startups. Connection of those two worlds bring mutual advantages. Corporations bring experience and capital, while startups can offer fresh thinking and speed”.
2019 is so far already another successful year for startups from StartupYard´s program, marking several significant investments and acquisitions. Rockaway Capital invested in Gjirafa (e-commerce platform and the fastest growing technology company in the Balkan region), as well as in BudgetBakers (fast growing personal finance application with a global reach). Steel Mountain (cyber security company from the UK) was acquired by Avast and Czech startup Brand Embassy, offering customer support on social media, was acquired by the Israeli public company NICE. StartupYard also started this year with two significant awards: Czech AI startup Rossum was voted “Startup of the Year” at the Czech AI Awards and WaymarkTech, UK-based company offering AI for regulatory compliance, was named one of the “Most influential FinTechs 2019” by a judging panel of experts in London.
About StartupYard
Established in 2011, StartupYard it is the oldest private accelerator in the CEE region. So far StartupYard has invested in an accelerated 10 cohorts of 72 startups. Its aim is to help startups grow and gain further investment while connecting them with partners and mentors to help them launch on the global stage. 2 In total, its startups raised more than €30m. 7 companies have been acquired. StartupYard is backed by Credo Ventures, Rockaway Capital, and a group of angel investors including Michal Illich, Josef Matejka, Michal Kratochvil, and Philip Staehelin.

On 3-4 June, more than 530 investors, entrepreneurs, VCs, corporates and innovators gathered in Helsinki to experience 2 days filled with networking, inspiring keynotes, productive workshops and insightful panel discussions at the 20th edition of the EBAN Annual Congress. EBAN Helsinki focused on creating a #ProfitableNetworking environment for all of its attendees, while also discussing all things angel investing and weighing in on innovation ecosystem trends. On top of the content-rich agenda, the Congress underlined the importance of matchmaking between investors, especially on a cross-border level, and the crucial role such connections serve in developing the angel investing and entrepreneurial ecosystem.
EBAN would like to thank our co-organisers for the Congress – FiBAN, Arctic15, and the European Investment Project Portal – as well as our sponsors and partners: KAAPELI, KPMG, Business Finland, NewCo Helsinki, Clarion Hotel, BusinessOulu, Springvest, Grannenfelt Finance, Privanet, ABAN, SpaceUp, EBAN Space, Terkko Health Hub, InnoEnergy, ESA, MBAN, Iris Capital, ELITE, Gust, We+ Kaapeli, ICEX – Invest in Spain, Aalto University, Business Jyväskylä, Nordic Business Angel Network, and  TAIGA COLORS, whose contributions were invaluable in making the event a resounding success.

 
In addition, we would like to thank the 98 speakers and mentors who shared their expertise and insights at the Congress, with special thanks to our world-class keynote speakers: Zach Coelius, Managing partner at Coelius Capital, Adam Kostyal, Senior Vice President at NASDAQ, Lars Fløe Nielsen, Co-founder at Nordic Makers, Filipa Ramalho, Policy Officer for the European Investment Project Portal, Pia Santavirta, Managing Director at FVCA, Risto Siilasmaa, Chairman of Nokia, Peter Vesterbacka, former Executive at Rovio, Adeo Ressi, Founder and CEO of The Founder Institute, and Rudy Aernoudt, Senior Economist at the European Commission.
Want to recap what was discussed? You can request the keynote presentations from the FiBAN office. Please note that not all speakers have agreed to share their presentation slides, nor shared them with the organizers.