EBAN has compiled an essential list of resources targeted to angel investors:
Earn Money with SMEs (French)
This guideprovides an explanation on investment in SMEs. It is presented and recommended as a resource for BAs, where you can answer questions like: What is an SMEs? Why and How investing in a small business? Seven Tips to enhance your knowledge about the SMEs ecosystem.
[private_Member Level]Earn Money with SMEs (French)[/private_Member Level]
Introduction to Shareholder Agreements
The EBAN Law & IP Working Committee drafted an introductory guide to Shareholders Agreements. A shareholder’s agreement regulates the relationship between shareholders in connection with the company’s business. The purpose of the agreement is to define the relationship between the different shareholders, their share of the undertaking, the management of the business, the disposal of shareholdering rights and commitments, and to structure the machanism in management of a company. The shareholder’s agreement should be regarded as a complement to the articles of association and the two agreements should not conflict with each other in any manner.
[private_Member Level]Introduction to Shareholder Agreements[/private_Member Level]
Angel Reporting guidelines and best practices
This is a 6-page booklet, with practical steps for CEOs and investors to follow aimed at making their relationship stronger, and more effective. Stephen Findlay, CEO of Invrep commented: “it can be difficult and time consuming for an angel-backed company to create and agree a reporting structure with their investors. With this booklet, we are helping to solve that problem”.
[private_Member Level]Angel Reporting guidelines and best practices[/private_Member Level]
Patenting Strategy: A Pocket Guide
This booklet is aimed at anyone who has to deal with patents at practical level, with particular emphasis on companies new to IP such startups.
[private_Member Level]Patenting Strategy: A Pocket Guide[/private_Member Level]
Early-Stage Global Impact Investing
Toniic Institute Introduces New 7-Step Framework to Global Early-Stage Impact Investing: Impact investing in early-stage enterprises, although challenging, can be extremely rewarding and potentially provide both financial and social or environmental returns. It allows investors to improve the lives of the poor or vulnerable—locally and globally—while providing a return on capital. Sourced from the experiences of the Toniic Network’s member investors, this e-guide is a fundamental reference for anyone seeking to understand how to successfully invest at the early stage for both a financial return and social or environmental impact.
[private_Member Level] Early Stage Global Impact Investing [/private_Member Level]
Equity Financing of Early Stage Growth Firm in Skane.
This master’s thesis attempts to map the equity market of Skåne for early stage growth companies. The providers of capital in this market are primarily venture capital firms, business angels and family offices. Family offices are excluded from the study in favor of the other two investor categories, of which business angels is the category most thoroughly investigated.
[private_Member Level] Equity Financing of Early Stage Growth Firms in Skåne. Karl Fogelström and Christoer Nilsson[/private_Member Level]
Society and Business Angels – a Partnership made in heaven?
Why many European governments care so much about Business Angels ! – The economy and the trends of angel investing in Europe. By Paulo Andrez, President EBAN
Co-Investment funds in Europe. By Bjom Tremmene, Head ERP-Dachfonds, European Investment Fund.
The Tax System as catalyst for early stage Investing. By Modwenna Rees -Mogg. Founder,CEO, AngelNews
Panel debate (in danish). Joachim B. Olsen, Liberal Alliance Benny Engelbrecht, Socialdemokraterne Brian Mikkelsen, Det Konservative Folkeparti Andreas Steenberg, Radikale Venstre
[private_Member Level] Society and Business Angels -a Partnership made in heaven? [/private_Member Level]
Best Practices for BA.
FiBANs “Best Practices for Business Angels” has developed over time and is continuing to live and change; we are regularly adding good advice as we learn. FiBAN is the biggest network of private investors in Finland, and actually one of the biggest ones in Europe in terms of the amount of members.
The first version of these Best Practices is based on the collective work of a team of experienced FiBAN founding members, who together have experience of making over 100 investments, leading dozens of start-ups and succeeding to do several profitable exits
We have in 7 chapters collected Best Practices and advice to consider as a Business Angel when looking and preparing for an investment, managing the investment and exiting the investment.
[private_Member Level] Best Practices for BA . Suomen Yksityissijoittajat [/private_Member Level]
Venture Capital Term Sheets 101: Understanding Critical Terms of your Early Stage Venture Deal.
Shelowitz & Associates is a business law firm with extensive expertise representing U.S. and international entrepreneurs and businesses in a diverse range of industries.
Objectives of this presentation is to provide:
- Overview of venture capital investment transaction.
- Understanding of critical deal terms.
- Foundation for win-win venture transaction
[private_Member Level] Venture Capital Term Sheets 101: Understanding Critical Terms of your Early Stage Venture Deal . Mitchell C. Shelowitz [/private_Member Level]
Financing Social Impact – Funding social innovation in Europe – mapping the way forward.
This report argues that improved access to funding is crucial for social innovation to grow and develop, and that the European Union has a critical role to play in mobilising ﬁnancial resources and coordinating activity.
This report comes at time when Europe is at a critical juncture, and it shows how the European Commission can use social innovation to deliver on Europe’s priorities for the future.
[private_Member Level] Financing Social Impact – Funding social innovation in Europe – mapping the way forward. European Commission [/private_Member Level]
Code of Conduct for Syndicated Cross-border Investments.
The following Code of Conduct establishes a minimum set of principles and standards for the business angel, seed and venture capital industry, in order to build trustworthy and reliable relationships in the framework of cross-border syndicated investments.
[private_Member Level] EASY: Code of Conduct for Syndicated Cross-border Investments. [/private_Member Level]
Executive Summary of a Shareholder’s Agreement.
The purpose of this Executive Summary of the Shareholders’ Agreement is to cover and summarize the main terms and conditions to be defined and agreed by the parties involved in a cross-border syndicated investment in an early stage initiative (hereinafter referred to as the Initiative or the Company) as regards among others the terms of the investment, relations between the parties, governance of Company and exit conditions.
[private_Member Level] EASY: Executive Summary of a Shareholders Agreement. EBAN [/private_Member Level]
[private_Member Level] Shareholders Agreement EN. [/private_Member Level]
Sources of Legitimacy for New Venture Investors
In this presentation, we focus on the information asymmetry between angels fund and start-up companies. We looking for angel and legitimacy, which do have backward relationship: in one side angels should contribute to legitimacy: on another side angels influence by legitimacy.
[private_Member Level] Sources of Legitimacy for New Venture Investors. Jeffrey E. Sohl and John Becker-Blease [/private_Member Level]
Business Angels Network Flanders.
The presentation shows importance of promoting Business Angels Network Flanders. The platform where capital seeking entrepreneurs and private investors meet.
[private_Member Level] Business Angels Network Flanders . Hendrik Van Veldekesingel [/private_Member Level]
Business Angels: Investment Evaluation Guide
Business angels aim at maximizing the benefit from the capitals to be invested. Profit maximization means collection of higher cash flows in a period. There are however two significant issues:
The role of profit and the role of time
The role of profits, especially accounting profits, obeys a series of rules (legislation, accounting principles etc). The use of the concept of profit as a criterion of behaviour helps taking sound decisions as ignorance leads to losing a significant tool in understanding the progress of an enterprise and the ability to manage it. Proper decisions for the enterprise’s resources lead to maximization of its (accounting) profits. The role of time is especially significant. Every capital asset is evaluated on the basis of the profits and losses of its holders. Profits and losses, though, are created in periods of time, so the dimension of time plays a very significant role in decision making.
[private_Member Level]Business Angels: Investment Evaluation Guide. [/private_Member Level]
Effective Measures and Critical Points to Accelerate the Business Angel Market in the Mediterranean
This guide is written to help companies and entrepreneurs looking for funding to understand how the investment process works, what to do if seeking funding , and explains what Investors and lenders look for in a proposition and how they like propositions to be presented to them.
This guide should be used in conjunction with other MACC BAM1 guides and tools which explain greater depth in each of the processes, such as Business Plan preparation, profit and loss forecasting, legal and so on.
The aim of this guide is to give entrepreneurs an outline of the process and points that need to be considered when raising finance and investment. It is suggest seeking the helps and advices from a Business Angel Network Manager available through the MACC BAM support centres.
[private_Member Level]Effective Measures and Critical Points to Accelerate the Business Angel Market in the Mediterranean. Holdings Limited [/private_Member Level]
Halo: Rebooting a BAN and Ecosystem.
The presentation highlights history of Halo and keys to success. Halo is the business angel network for Northern Ireland and is sponsored by InvestNI and IntertradeIreland. Its role is to match companies with growth potential with high net-worth individuals – the angels – who may wish to invest in them.
[private_Member Level] Halo: Rebooting a BAN and Ecosystem . Alan Watts[/private_Member Level]
Can the Stock Markets Provide the Business Angels with an Exit?
- Stock markets have created ”entry markets” for SMEs
- Stock markets are not in direct competition with Business Angels:
- There are advantages and drawbacks in both alternatives
- The best choice for a company depends on its maturity
- Good news for Business Angels: exits can happen sooner
[private_Member Level] Can the Stock Market Provide the Business Angels with an Exit? . Frédéric de Laminne[/private_Member Level]
Study on the Impact on the State Fiscal Revenue of Tax Incentive of 30% Granted to Business Angels’ Investment.
This research explains the tax incentive granted to Business Angels is, beyond any doubt, an important measure to revitalize the Portuguese economy, with clear benefits to the Fiscal Revenue. The present study shows that the referred tax incentive is not merely a decrease in revenue or increase in tax expense for the State Fiscal Accounts. Rather, it is a recovery engine for the economy with the guarantee of a quick return of the tax incentive granted with tax revenue increase in a few months. It is a risk free investment for the State: the expected rates of return are high, the payback occurs in the first months of activity of the company incorporated with the Business Angel’s investment
[private_Member Level] Study on the impact on the State Fiscal Revenue of tax incentive of 30% granted to Business Angels’ investment . FNABA [/private_Member Level]
Financing High-Growth Firms: The Role of Angel Investor
This report covers seed and early-stage financing for high-growth companies in OECD and non-OECD countries with a primary focus on angel investment. Following the recent financial crisis and continued difficult economic environment, angel investors have been playing an important role in filling financing gaps left by banks and venture capital firms. This report provides an in-depth look into angel investment, including definitions, data and processes. It reviews developments around the world and identifies some of the key success factors, challenges and recent trends. It then discusses policy measures for promoting angel investment, with examples from countries which have been active in this area.
[private_Member Level] Financing High-Growth Firms: The Role of Angel Investors. OECD Publishing [/private_Member Level]
Conflicts between Entrepreneurs and Investors: the Impact of Perceived Unethical Behavior
This paper examines the impact of perceived unethical behavior by entrepreneurs, angel investors and venture capitalists on their conﬂict process. For this purpose, we use an embedded case study design to provide a diversity of perspectives on the topic at hand. From the eye of the beholder, i.e. investor, entrepreneur or both, 11 conﬂict situations were analyzed for any perceived unethical behavior.
[private_Member Level] Conﬂicts between Entrepreneurs and Investors: the Impact of Perceived Unethical Behavior. Veroniek Collewaert and Yves Fassin [/private_Member Level]
Should Government Support Business Angel Network? The Tale of Danish Business Angels Network
This article discusses the possible rationale for governments to support BANs and what criteria to apply when evaluating such networks. The article is based on an in-depth observation study of the whole life cycle of a national BAN – the Danish Business Angel Network (DBAN) – and a comparison with a similar national angel network in Wales. Results show that applying traditional evaluation criteria for assessing BANs may provide only a partial picture.
[private_Member Level] Should Government Support Angel Network? The Tale of Danish Business Angels Network. Jesper Lindgaard Christensen [/private_Member Level]
Access to Finance for Innovation: The Role of Venture Capital and the Stock Market
Financial constraints for young and small firms can prevent them from supporting innovation and employment creation. We analyze two of the various institutional mechanisms which have been proposed to circumvent it: the development of venture capital market and the stock market access. We will use the information provided by two Scoreboards – used to monitor innovative activity in Europe: the Innovation Union Scoreboard and the R&D Scoreboard.
[private_Member Level] Access to Finance for Innovation: The role of Venture Capital and the Stock Market. Francesco Bogliacino and Matteo Lucchese [/private_Member Level]
Angel Investment Decision Making as a Learning Process.
This paper extends the literature on the investment decision-making of business angels. Using insights from entrepreneurial learning theory, particularly the use of heuristics and the nature of learning from experience, we explore whether angels learn from experience, how they learn and what they learn. These issues are addressed using verbal protocol analysis, a methodology for examining decision-making in real time, on three groups of business angels with differing levels of investment experience, and on follow-up interviews with these angels. This reveals some differences in the speed of decision making and the emphasis given to various investment criteria. There is some evidence for the use of heuristics in the decision making process, and for the critical role played by vicarious learning from the experience of others. Learning in the individual angel decision making process is a social as well as individual phenomenon.
[private_Member Level] Angel Investment Decision Making as a Learning Process . Donald J. Smith, Colin M. Mason, Richard T. Harrison [/private_Member Level]
Investment Readiness Programmes and Access to Finance: a Critical Review of Design Issues.
Access by SMEs to finance is constrained by demand-side weaknesses. Most businesses are not investment ready. Their owners are unwilling to seek external equity finance and those who are willing do not understand what equity investors are looking for or how to „sell‟ themselves and their businesses to potential investors. These weaknesses, in turn, compromise the effectiveness of supply-side interventions, such as initiatives to stimulate business angels or which create public sector venture capital funds. This has highlighted the need for investment readiness programmes which seek to increase the pool of investable businesses. This paper reviews the design and delivery of investment readiness programmes in the UK and draws out lessons for best practice.
[private_Member Level] Investment Readiness Programmes and Access to Finance: a Critical Review of Design Issues. Colin Mason, Jennifer Kwok [/private_Member Level]
Angel Awareness Campaign  – .
The presentation gives an overview to important findings of recent research on angel investing and shows importance of promoting Business Angel finance through an Asset Class to wealthy and sophisticated individuals in the UK. It highlights how Industry Experience, Due Diligence and Board Involvement influence outcomes of angel investing. Built on these research results, numerous awareness campaigns and events have been organized to support the recognition of this Asset Class.
[private_Member Level] Angel Awareness Campaign  – . Anthony Clarke [/private_Member Level]
Business Angel Investing: A guide to the Legal, Tax & Regulatory Issue.
The BBAA puts forward its new Guide to the Legal, Tax and Regulatory Issues concerning Angel Investing as part of their Awareness Campaign. The Guide aims to address the many queries that may arise by those considering Angel Investing for the first time, ranging from initial considerations about Angel Investing and surrounding issues of eligibility to become a Business Angel to post investment/exit matters and the legal and regulatory issues involved in this process. Both potential and experienced Angel Investors will find this Guide useful.
[private_Member Level] Business Angel Investing: A Guide to the Legal, Tax and Regulatory Issues . BBAA [/private_Member Level]
Business Angel Syndicates in Scotland: an Exploratory Study of Gatekeeper.
As informal investment markets in many countries have matured, syndicated angel investment has been taking a greater share of overall informal investment. Yet, in contrast to their increasing importance, business angel syndicates have been subjected to little examination. The objective of this report is to address this gap in knowledge and understanding by examining the role of the individuals who control access to and manage much of the day-to- day operation of these investment syndicates, namely business angel gatekeepers.
Business Angel Syndicates in Scotland: an Exploratory Study of Gatekeeper . Stuart Paul, Geoff Whittam
Why Angels Invest Deconstructing the Data Behind $16.5M of Invested Capital.
As this is the first of many data reports, the initial focus on this report is on the scored and unscored attributes of each venture and the influence that they had on the investors final decision.
The foundation of analysis criteria used in the venture analysis were developed through the ongoing Venture Phenome Project which works with hundreds of Angel investors and entrepreneurs to isolate and identify the key attributes and environmental factors that are considered during the Angel investment due diligence process
[private_Member Level] Why Angels Invest Deconstructing the Data Behind $16.5M of Invested Capital . Venture 360 [/private_Member Level]
Introduction to Business Angels and Business Angels Network in Europe.
This publication gives you an introduction to business angel activity in Europe. By providing entrepreneurs with two essential elements, finance and advice, business angels contribute to a more innovative and entrepreneurial Europe. This is important for the European Commission because we believe that innovation and entrepreneurship are the only lasting way to improve our competitiveness, growth and employment.
[private_Member Level] Introduction to Business Angels and Business Angels Network in Europe . EBAN [/private_Member Level]
Co-investing with Business Angels.
The presentation gives an overview to important findings of recent research Scottish Enterprise Co-investing with Business Angels. It highlights Scottish Seed Fund, Scottish Co-investment Fund, Scottish Venture Fund.
[private_Member Level] Co-Investing with BA . Scottish Enterprise [/private_Member Level]
Best Practice Guidance for Angel Groups: Deal Structure and Negotiation.
The article is primarily concerned structuring the deal as a key aspect of completing an angel round of financing. Negotiating and structuring the deal can be the most complex aspects of angel investing.
- Angel investing groups generally aim to take 20 to 50 percent ownership stake of early-stage companies. Therefore, structuring the deal and negotiating the terms begin with the valuation of the company.
- The valuation of a company is a critical component to whether the deal occurs or not. How the entrepreneur approaches the valuation is very revealing about the management and can make or break the deal.
- Structuring the deal entails defining the ownership. Equity ownership structures commonly used are common stock, preferred stock, participating preferred stock, and convertible notes.
- The key aspects that underpin negotiating the deal include reduction of risk, amount of control, and provisions for liquidity.
[private_Member Level] Best Practice Guidance for Angel Groups: Deal Structure and Negotiation . Ann-Marie Koss [/private_Member Level]
Best Practice Guidance for Angel Groups: Due – Diligence.
Due diligence in the venture industry is the investigation and analysis the investor performs to see if an investment opportunity meets the investor’s criteria for funding. For angels as well as venture capitalists, the primary objective of due diligence is to mitigate investment risk by gaining an understanding of a company and its business as well as determining the suitability of the investment for the portfolio.
[private_Member Level] Best Practice Guidance for Angel Groups : Due Diligence . David Eyler[/private_Member Level]
Best Practice Guidance for Angel Groups: Post Investment Monitoring.
Monitoring the performance of your investment is essential to being a successful angel investor, and having solid monitoring processes is as important as due diligence. During the pre- investment dance and documentation, you should determine the level of involvement your group will have with the company post investment.
Best Practice Guidance for Angel Groups; Post Investment Monitoring . Paul Stavrand
The Business Cube.
The Business Cube is a simple and intuitive tool to aid in business planning. It outlines the key information components that investors look for when evaluating investment opportunities, and is therefore a useful guide for ensuring that your business plan addresses those key issues in which potential investors will have greatest interest.
[private_Member Level] The Business Cube. Equity Network Business Planning Tool [private_Member Level]
Best Practice Guidance for Angel Groups: Deal Screening.
Investment Aid and Incentives in Spain.
With the aim of fostering investment, employment, competitiveness and economic growth, the Spanish central government and the rest of the public authorities have implemented a wide and comprehensive range of aid instruments and incentives. These are designed to encourage three broad activities: research, development and innovation (R&D&I) projects, the hiring and training of workers with specific characteristics and new business start-ups.
Since Spain is an EU Member State, potential investors are also able to access European aid programs, which provide further incentives for investing in Spain.
Investment Aid and Incentives in Spain . INTERES
Doing Business in Finland.
This publication gives you an introduction to business angel activity in Finland. This document focuses on : Legal System, Foreign Investment, Business Vehicles, Employees, Tax system, Competition and Intellectual Property.
[private_Member Level] Doing business in Finland . Lennart Simonsen, Tero Jormanainen [/private_Member Level]
Returns to Angel Investors in Groups.
Entrepreneurs and investors regularly wonder what the returns are in angel investing. The completion of this research project provides robust data on this subject that has never before been available.
Our findings in this study are based on the largest data set of accredited angel investors collected to date, with information on exits from 539 angels. These investors have experienced 1,137 “exits” (acquisitions or Initial Public Offerings that provided positive returns, or firm closures that led to negative returns) from their venture investments during the last two decades, with most exits occurring since 2004.
[private_Member Level] Returns to Angel Investors in Group . Robert Wiltbank, Warren Boeker [/private_Member Level]
Understanding Term Sheets and Deal Structure.
- Valuation: Percentage of Company
- Control: Board Composition, Protective Provisions and Restrictions on Founders Stock
- Exit Strategy:
- IPO –Registration Rights
- Acquisition –Liquidation Preference
- Down-Side Protection: Anti-dilution adjustment
[private_Member Level] Understanding Term Sheets and Deal Structure . John Fogg [/private_Member Level]
Business Angel Network: Add-on services.
Business angel networks are providing their customers with sophisticated services (angels and entrepreneurs) as well as match-making services. These new services range from the provision of syndication opportunities to various types of complementary investment vehicles. This compendium aims to provide readers with characteristics of those new services available on the European market.
[private_Member Level] Business Angel Network: Add-on services . EBAN & EUREKA[/private_Member Level]
Setting Up a Region Business Angel Network (BAN), Business Angels and Entrepreneurs Academy in the Mersin Region, Turkey.
The Mersin BAN project aimed to build a Business Angels Network (BAN) within a Turkish Chamber to promote regional investments and provide coaching activities to Chambers’ members and entrepreneurs through the services offered by the network in order to stimulate entrepreneurship activities in the region.
[private_Member Level] Setting Up a Region Business Angel Network (BAN), Business Angels and Entrepreneurs Academy in the Mersin Region, Turkey . Mersin Chamber of Commerce & Industry[/private_Member Level]
Scottish Article ( The Companies Acts  – ) and Scottish Investment Agreement.
[private_Member Level] Scottish Articles. [/private_Member Level]
[private_Member Level] Scottish Investment Agreement. [/private_Member Level]