by Georgios Filiopoulos, CEO at Enterprise Greece, and Panayiotis H. Ketikidis, Co-Founder & Executive Board Member of HeBAN

The First Greek Unicorn

‘Cutting edge technology, unprecedented agility, and in-depth knowledge’ was how Haris Karonis, CEO & co-founder of Viva Wallet described his Athens-based company earlier this year.

He made the comments after JP Morgan confirmed they would purchase a 49 percent stake in the company, with reports indicating the US bank was willing to pay close to $1 billion, making Viva Wallet Greece’s first tech unicorn. It was a big story that got noticed by investors around the world, but for those watching closely the emergence of Greece’s first unicorn is emblematic of a bigger development taking place – both in Greece’s startup ecosystem and its economy more broadly.

Greek Startup Success Stories

For the ‘in-depth knowledge’ you could also talk about Skroutz for example, launched in 2005 and scaled up by its founders without VC funding to become known as the “Greek Amazon”. For ‘cutting edge technology’ you might have been talking about Greek hailing app Taxibeat, bought up by Daimler in 2017. Last year Greek prop-tech startup Blueground, founded  in 2013, proved its agility by raising $140 million, with Bloomberg reporting its value at $750 million. Overall Greek startups raised over half a billion euros last year, triple the previous year.

So the question is not ‘will there be another Greek tech unicorn’, it’s not even ‘when’, because it will likely be soon. The real questions are ‘who next’ and ‘how many’, because the upwards pressure from innovative startups in the ecosystem is breaking through. If you need any more proof of this you only need to look at some of the companies pitching at this year’s Hellenic International Business Angels Summit, taking place in Athens as I write this very article. The event pulls together business angels, VC funds, policymakers, entrepreneurs, accelerators, seed funds, and startups from all over Europe and beyond. If you’re lucky enough to be there you might run into the founders of ResNovae PC, an automated, cloud-based ESG management platform, or of car-sharing app Caroo, or Athletopia, providing tech solutions to deliver running events.

The Greek Ecosystem

The vibrancy of the ecosystem in Greece and the potential of the broader economy have also been noticed by big-tech and other corporations like Amazon, Cisco, Microsoft and Volkswagen. In fact, Foreign Direct Investment in Greece soared in Q1 of 2022 by almost 214 percent compared to the same period in 2021, reaching more than €3 billion in value. Exports also leaped by 31 percent in the same quarter, compared to the previous year, hitting almost €16 billion in value.

When Amazon Web Services’ Vice President Michael Punke announced his company’s intention to launch new infrastructure in Greece last year he said it was because of “the change seen in the Greek economy compared to the previous decade”. He was talking about the story of transformation that has seen the country make bold choices to digitise, re-make, and open the economy to create the environment for innovation to thrive. It was not easy. Since the 2008 financial crisis, Greece has had to grow through adversity into the stable, resilient nation with an exciting future that it is today.

But marks of that transformation can be seen everywhere. Even amidst the pandemic, Greece has had six consecutive quarters of growth, with output having now returned to its pre-pandemic level, and growth of 8.3 percent in 2021. Earlier this year Greece paid off its entire debt from the financial crisis to the International Monetary Fund two years ahead of schedule, and the EU is in the process of releasing Greece from the financial stabilisers that were placed on the country as a result of the crisis.

What the Future Holds

Another signpost towards our country’s promising future is the arrival next year of the EBAN Athens Annual Congress 2023, after another successful edition in Cork in 2022. During this year’s event Irish Foreign Minister Simon Coveney called it “one of the most significant business angel opportunities anywhere in the world”. I couldn’t agree more.

This most recognized of international business angel events will come to Greece for three days in April, with the brightest and best in tech coming from across the globe. When people arrive in Athens, of course they will find a city with a glorious history of over 3400 years, but alongside that they will also find a cosmopolitan, modern city, full of life, full of promise, and full of opportunity.

You can pre-register for the EBAN Athens Annual Congress here!

By Caroline Sai, Head of the EIT Investor Network and Angels Santé (Angels4health) & EBAN Board Member

Push or Pull ?

It’s Friday afternoon, and the sand has settled after a whirlwind of startups pitches, investor meetings and workshops on this very theme. It is now time to reflect on questions raised and a good opportunity to go back to my tip “Should fundraising be painful” with its very first advice of having a powerful opening.

I love reading so allow me to indulge once more in my book analogy. Too many healthcare startups set the scene with a Patient case study that is facing a dire situation to which no obvious medical solution  is available. The tone is dark and sadly one we can all relate to. It is a technique to make you jump with relief into the next scene which will, hopefully, detail how their company will bring sunshine back to those patients.

 Is this enough to say that they are solving an unmet medical need that will serve millions?

I always have the question Push or Pull ? at the tip of my tongue. 

To put it simply, or even a bit sarcastically, did the idea pop up at the dinner table with friends and was followed by excruciating efforts to push it to a market that didn’t really want it or wasn’t ready for it?

Or has years of experience in the sector and bullet-proof evidence brought on this innovation that no other competitor has, to solve the intended problem?

If such an innovative solution is in your hands, then do push it to the right customer but make sure that you think long term and also include a pull approach to your strategy.

So many stakeholders are involved in your journey towards success: the patient, the healthcare system, the payer, the care giver, the regulatory bodies, your manufacturer, distributors, competitors and your investors.

None can be forgotten as you build your business.

You need to listen to them all, understand their needs and what makes them tick. Though this takes time, people and money, it is ultimately the safest route to ensuring that you have a product market fit, with payers, advocates, adopters, users in a sufficiently large market to excite investors.

Can I be bold and add an extra wish? that your great solution is patient and user centric while saving money for our already indebted healthcare systems and time-saving for our overloaded medical staff ?

If you can wrap it up in a powerful introduction, I’m convinced ! Your claim is set now let’s move on to the evidence…

Part I of this article came out last month – you can read it here!

About the Contributor

Caroline Sai is the Head of the EIT Health Investor Network and Angels Santé (Angels4health) & EBAN Board Member. The EIT Health Investor Network is a European network of healthcare investors dedicated to supporting healthcare startups in their fundraising journey. It is a network managed by Angels Santé and co-financed by EIT Health . To learn more about how to join our program as an investor or a startup, click here

In the last phase of THE NEXT SOCIETY, some of the best startups EBAN could find MENA joined us in events all over Europe: first at the EBAN Annual Congress held in Cork on the 18th and 19th of May, then at the International Investor Forum in Barcelona on the 9th of June, and finally at the Hellenic International Business Angel Summit on the 23rd and 24th of June in Athens. In the six years of the project, TNS has supported over 125 startups, facilitated more than 90 one-to-one meetings between entrepreneurs and investors, and organised 20+ workshops. 

EBAN has a long track record of supporting cross border investment and we were excited to explore new ways to make it more efficient for both investors and entrepreneurs. In this article, we will present the best practices for cross-border investments that we discovered through THE NEXT SOCIETY. 

Consider reverse pitching

“When the investor talks, they speak similarly to other investors and get more credibility.” (Wael Azar, CEO and Co-Founder of IN2)

Tarek El Kady, Founder and Chairman of EBAN member Med Angels, came up with the idea of trying reverse pitching at the Hellenic International Business Angel Summit in Athens. Reverse pitching consists of having the local lead investor pitch to other investors on behalf of their supported startup. Afterwards, the entrepreneur can answer the more technical questions. Despite initial doubts on the part of the entrepreneurs, the concept proved to work better than anyone could have expected. 

“When we do the regular pitch presenting our slides, we are following what we are used to doing. However, when we talked with other investors, they said that if the investor talks about the startup he/she is mentoring, often he/she speaks with their own words.” (David Riallant, President and Co-Founder of Visitmoov)

Go networking with your lead investor

“Networking has been amazing especially in Athens, since we had the chance to have our mentor with us. He knows a lot of people and opens a lot of doors.” (David Riallant, President and Co-Founder of Visitmoov)

Angels do not provide only equity, they provide mentorship and network too. They know other angels who trust their judgement and are ready to syndicate with them. Thus, startups could benefit by having their investors act as sponsors.Having a local lead investor sponsoring entrepreneurs is especially important for cross-border investing as the other investors can rely on them. In  fact, often cross-border deals do not take place because the investors are not confident about the legal framework of the other country.

Pitch on the first day, network on the second day

“I got to meet very interesting people, I got to network a lot, and I have people who I am in contact with.” (Wael Azar, CEO and Co-Founder of IN2)

Securing a meeting with an investor can be challenging for cross-border investing due to geographic distance. Even though entrepreneurs might be able to contact investors online, nothing compares to in-person meetings when it comes to closing a deal. Angels seek personal relationships built on trust with their supported entrepreneurs. A best practice for event organisers is therefore to make sure that the pitches are as early as possible so that entrepreneurs can take advantage of the rest of the time to meet with interested investors.

Ask another investor to mentor you on your pitch

“The meeting with the mentor is going to definitely change the way we are pitching.” (David Riallant, President and Co-Founder of Visitmoov)

As mentioned above angels provide mentorship too. Sometimes, though, they can act as mentors only. This may happen if they don’t feel comfortable investing in your company yet, because it could be too early or too risky, or if they are happy with their current investments. In this case, you can ask them to become your mentor and check your pitch, business model and business plan. Sometimes, they can also redirect you to other angels that may be more comfortable in investing. And this mentoring might prove much more beneficial.

It can help entrepreneurs understand what information is relevant for other investors and thus to make the business more attractive. Support from an angel as a mentor is also proof of validity for your business. Even if you already have an investor acting as a mentor, try finding a second one to have more diverse feedback.  

Another hot tip: Try to participate in pitch dry runs. A pitch dry run is a coaching activity where the participating companies are given the possibility to meet and test their pitches in front of a panel of experienced coaches who deliver hands-on and customised feedback on both their presentation and pitching skills.

“The pitch dry run and the meeting with the investor taught us and showed us what a pitch looks like from an investor’s point of view.” (Wael Azar, CEO and Co-Founder of IN2)

About THE NEXT SOCIETY

THE NEXT SOCIETY was an open community of changemakers engaged in innovation and economic development. It brought together entrepreneurs, investors, corporates, NGOs, public and private innovation, research and economic development hubs from Europe and the Mediterranean countries. It already gathered a large network of over 300 business & innovation, research and investment organisations, 2,500 international SMEs and entrepreneurs from 30 countries. THE NEXT SOCIETY launched a 6 year action plan (2017-2022), co-funded by the EU up to 90% for a global amount of EUR 7.8 million budget.

THE NEXT SOCIETY partners’ community

Agence de Promotion de l’Industrie et de l’Innovation (APII) | Agence régionale pour l’innovation et l’internationalisation des Entreprises en Provence Alpes Côte d’Azur (ARII – PACA) | Agence wallonne à l’exportation et aux investissements étrangers (AWEX) | Agencia per a la Competitivitat de l’Empresa – ACCIÓ  |ANIMA Investment Network | Association of European chambers of Commerce and Industry (EUROCHAMBRES) | Berytech Foundation | BigBooster | Centro Este ro per l’Internazionalizzazione (CEIPIEMONTE) |  Confédération des Entreprise Citoyennes de Tunisie (CONECT) | European Business and Innovation Centre network (EBN) | Forum Euroméditerranéen des instituts de sciences économiques (FEMISE)  | France Clusters | Higher Council for Innovation and Excellence (HCIE) | IT Industry Development Agency (ITIDA) | International Network for Small and Medium sized Entreprises (INSME) | Kedge Business School | The Mowgli Foundation | PICTI.Start – up | Association Marocaine pour la Recherche et le Développement (R&D Maroc) |  Royal Scientific Society (RSS) | Start up Maroc | The European Trade Association for Business Angels (EBAN)

This project has received funding from the  European Commission under grant agreement No ENI/2016/382-726. More information about the project can be found here: http://www.thenextsociety.co

EBAN, the European Business Angel Network, and EVPA are partnering to strengthen collaboration between their respective networks and build the European impact investing space together.

With this partnership, EBAN and EVPA aim to create synergies to ensure impact becomes more embedded in the entrepreneurship ecosystem. We will connect our respective communities to share knowledge and promote best practices. We will also work together to collect and harmonise data on impact investment practices and trends from across Europe, so as to provide a more comprehensive analysis of the market.

“Business angels are key when it comes to supporting entrepreneurs and innovative start-ups, and can play a critical role in fostering an impact mindset by adopting investing for impact practices in early stages”, said Roberta Bosurgi, EVPA CEO. “We look forward to building bridges and sharing knowledge with the EBAN network to further enable a thriving European impact ecosystem.”

“EBAN is delighted to start this collaboration with EVPA. This new partnership will allow us to pursue our common goals in promoting and advancing impact investment”, said Jacopo Losso, EBAN Director. “We have always been committed to meaningful impact investing, as is evident by our actions, and working together with EVPA will allow us to double down on that commitment” he added. 

EVPA, the investing for impact community, is a unique network at the intersection of business and purpose, driven by knowledge and focused on impact. We work to increase prosperity and social progress for all, fix inequalities and injustices and preserve the planet. We rally people, capital, knowledge, and data to catalyse, innovate and scale impact. EVPA brings together a diverse group of capital providers (impact funds, corporations, foundations, private equity, banks, public funders) and social innovators of all sorts – from household names to emerging new players. For more information, contact info@evpa.ngo

EBAN is the pan-European representative for the early stage investor community gathering over 150 member organizations in more than 50 countries today. Established in 1999 by a group of pioneer angel networks in Europe with the collaboration of the European Commission and EURADA, EBAN represents a sector estimated to invest 11.4 billion Euros a year and playing a vital role in Europe’s future, notably in the funding of SMEs. EBAN fuels Europe’s growth through the creation of wealth and jobs.

Aries are determined, passionate, active, and optimistic. They enjoy taking on leadership roles and making an impact, while they dislike inactivity, delays, and a work that does not fully utilise one’s talents, and – what’s that? We are talking about the EU Project ARIEES and not the zodiac sign Aries? Huh, that does make more sense. But somehow all of the above is still true! 

ARIEES (Alliance for Responsible and Impactful Investment in Eastern Europe) is an Erasmus+ Project meant to empower determined, passionate, active and optimistic people by helping universities improve: it aims to give universities and thus university students the tools to upgrade their entrepreneurship courses. To achieve this, ARIEES plans to infuse universities with crucial impact investing know-how so that the future entrepreneurs attending those universities can then use it in their journey leading their own companies. 

The project also has another objective: Enhancing the skills of the professors in universities. That way, the professors will be better equipped to communicate the aforementioned impact investing knowledge to their students in the most efficient, and fast way possible – aries do hate delays after all. In order to successfully reach this goal, ARIEES is  delivering digital education that would enable a supportive virtual class environment. This way the students/ future entrepreneurs can focus on putting all of their passion and talent in their ventures! 

However this is EBAN, and everything we do is in the vain of promoting healthy and responsible angel investing in Europe: promoting an ecosystem where enthusiastic entrepreneurs are more educated on impact investing will create more and better investment opportunities for business angels and ARIEES is determined to make that happen. That’s why, at EBAN we are taking the lead in spreading the word about ARIEES! 

Maybe there is some truth in zodiac signs after all…

About ARIEES

ARIEES is a Erasmus+ project that responds to the efforts of the EU Commission on developing impact investment capabilities into the next generation of entrepreneurs and with a particular focus in Eastern Europe Region. Thriving in the new EU economy poses imminent challenges for entrepreneurs worldwide. Dealing with exponentially growing stocks of digital start-ups (and not only) that fast-pace innovation at unimaginable speeds, entrepreneurs are not faced anymore just with a financial consideration dilemma when receiving or asking for investment. Fast paced innovations are good and needed worldwide indeed and the global start-up ecosystems are exceeding all expectations to this end. But this is not enough. As the entire world is moving towards a more sustainable & fairer business & social ecosystem, so should entrepreneurs otherwise they risk not being able to reach investment. To this end, the concept of impact investment appeared (investment in startups that produce environmental and social benefits) and it is gaining a big momentum in the startup scene. 

Project Partners

• EBAN – European Business Angel Network Belgium Brussels 
• UNIVERSITATEA DE VEST DIN TIMISOARA
• HELIXCONNECT EUROPE S.R.L 
• ISQ e-learning
• FUNDACJA ROZWOJU PRZEDSIEBIORC ZOSCI

This project has received funding from the  European Commission under grant agreement No KA220-HED-8DBAFE07. More information about the project can be found here: https://ariees.eu/

By Kobi Kalderon, Founder and CEO at Gold Venture Investment

As a contributing member of EBAN, I know my way around the angel investing world and have worked with many startups through the years. Therefore, I have decided to share my knowledge and experience in this field with the EBAN community to shed light on the most common mistakes startups make, which set them up for failure, and how to avoid them.

Here are 3 common things to avoid:

• Supply but no demand

In my opinion, the first mistake they could make is to act exclusively out of emotion, they’re excited about the technology created or that their product works, and don’t think their actions through rationally or logically. From the get-go, they adopt a tech perspective which doesn’t align with real market needs : and without demand there is no need for supply.

• Lack of deep market research

Staying on topic, in many cases, the founders don’t actually pay enough attention to deep market research, competitor analysis, and entry barriers : all necessary topics to be looked at in depth by the startup. If these steps aren’t checked off the to-do list, the natural consequence of this unfortunately falls on the user experience of the product, which is compromised, and usually lacking when faced with competitors. Therefore, completing this research is key to the success of your startup. You can begin this process by asking yourself and your company a series of questions :  Who is the target audience to your “solution”? What are their weak points? What to expect from the “solution” or product? and What should be the business model that could fit their expectations? Deep insights about user experience is needed and the GUI (graphical user interface) needs to be taken into account.

• Undetermined rights & blurred lines

Another mistake to be made refers to the legal framework between startups and developers. This miscommunication is the root of the failure of many startups: they wish to attract developers that will aid them in the creation of their product, which they’re unable to produce due to lack of skill or know-how, but don’t sign or write up a formal contract. The developper can then sue the startup for which they worked for and obtain the IP and full rights on the product.

Who can help & how can we do it:

We at GVI aim to guide you through this perilous process by assisting startups in bridging the gap by doing the required market research, and advising them on how to utilize it during product design and development.

As for the investors,  GVI offers second opinions as part of the pre-evaluation process to minimize their risk if the founders are technology-oriented and a broader understanding of the market needs.

Finally…

I hope these examples of potential mistakes can help open your eyes, and push you to start knitting the safety nets necessary to prevent failures of any kind. You can always turn to GVI, whether startup or investor, to supply you with the essential yarn and tool sets to set you on the right scarf…or path!

About the contributor

Kobi (Jacob ) Kalderon  is  the founder and CEO of Gold Ventures investment. GVI is a global investment banking company based in Israel and Europe (DACH region) with international partners in 30 countries (Israel, Europe, LATAM, USA, Asia, Africa). GVI”s investors invest in startups companies with a ticket size ranging between $1 million – $10 million and in early-stage companies that are developing MVP to mature companies with $1 million in revenues.