0100 Conferences: Rabatt for Investoren-Event

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Die 0100 Conference in Wien vernetzt Investoren aus Ost- und Westeuropa. Für diesen exklusiven Event können wir 10% Rabatt anbieten. Einfach auf der Webseite von 0100 Conferences gehen und beim Kauf den Code VC17BIA eingeben.

Details zum Investoren-Event:

Datum: 16. Februar 2017
Start: ab 09:00 Uhr
Ort: Hilton Wien, Am Stadtpark 1, 103o Wien.

 

Die Veranstalter rechnen mit mehr als 350 Teilnehmern mit Fokus auf Family Offices, High Net Worth Individuals, Venture Capitalists, Private Equity und Pensionsfonds-Manager.

 

Zur Webseite von 0100 Conferences

Investor and Startup Events in Europe

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If you want to be successful as Business Angels you need to get connected with founders and other investors. Events are listed according to date. If you miss one event, please give us a hint!

AUGUST

01.08.2017 – 2nd BMVI Startup Pitch, Germany, Berlin
It will take place on 1 August 2017 in the Federal Ministry for Transport and Digital Infrastructure (BMVI) in Berlin. The BMVI invites young entrepreneurs, start-ups and founders to present their ideas and solutions to high-profile representatives of large companies, who often invest in start-ups. The three most innovative teams also receive the prospect of 10,000 euros funding.

 

02.08.2017 – NPM: New Platform Marketing Germany, Hamburg
The NPM Conference is a one-day event dedicated to uncovering the newest chances and opportunities from all around the digital marketing universe. Whether it’s the latest approaches, trends or untapped channels, NPM (New Platform Marketing) delivers tangible insight and knowledge to advertisers, brands, publishers, influencers and anyone else looking for an edge in their marketing.  www.omr.com

 

03.08.2017 – She loves Tech: Global Startup Competition Germany, Berlin
The She Loves Tech Global Startup Competition is designed to give the world’s most promising women entrepreneurs and women-impact startups a unique opportunity to showcase their businesses to a global audience of investors and influencers from the tech community.

 

16.08.2017-17.08.2017 – The Conference 2017 Sweden, Malmo
You can expect everything from brain scientists and activists to marketing experts and cool makers who’ll cover topics like UX, psychology, ai, marketing and so on. In the end, it all comes down to exploring our three main themes: Human behavior, new technology and how to make it happen.

 

23.08.2017 – Co-Found Berlin: Summer Event Germany, Berlin
After 39 successful events together, 3 years plus and more than 3,000 Members to date, Come celebrate our 40th event like no other. We’re honored to have created the Co-Founding event catergory and have been ranked by meet-up as the NUMBER ONE Co-Founding event in the World! Hosted by one of our sponsors atop Potsdamer Platz, with great food, drinks and the best panoramic terrace and view in Berlin.
Co-Found Berlin

 

31.08.2017 – Growth Marketing Summit Germany, Frankfurt am Main
World class optimizers meet at the growth marketing SUMMIT. Experience international top speakers like Gary Vaynerchuk, Chris Goward and Bryan Eisenberg, and get inspired by their experiences and methods. Experience a knowledge-packed business event with an entertaining factor! Look forward to an experience for all senses in a top location with top catering and live DJ! www.growthmarketingsummit.com

 

SEPTEMBER

06.09.2017 – 22. Handelsblatt Banking Summit Germany, Frankfurt
Meet over 500 decision-makers from banking, fintech, media and compliance sectors. Listen to industry movers and shakers, and opinion leaders. Be inspired by fintechs and awkward and intransigent thinkers. Engage digitally, using apps for questions, live surveys and networking. Network at the Future Banking World event and the evening event in the Palmengarten.
Banking Summit Frankfurt

 

06.09.2017-07.09.2017 – Pirate Summit Germany, Cologne
An event that links entrepreneurs with venture capitalists and business angels.
www.piratesummit.com

 

08.09.2017 – Startupnight 2017 Germany, Berlin
Startupnight is one of Europe’s largest startup events, where startups present themselves to corporates, investors and potential customers. It will take place for the 5th time on Friday, September 8th 2017 in the heart of Berlin with 5000+ participants and 250+ startups from around the world in categories like mobility, energy, communication, AI, AR/VR, health and many more. www.startupnight.net

 

14.09.2017-17.09.2017 – New Mobility World Germany, Frankfurt am Main
The New Mobility World 2017 is the place at the IAA where pioneers meet and innovation comes to life. Digital experts, technology companies, startups, disruptors and the automotive industry come together to discuss and build the future of mobility.
www.newmobility.world

 

15.09.2017-17.09.2017 – Innospace Weekend 2017 Germany, Cologne
We invite all aspiring entrepreneurs to join us over an extended weekend in Cologne where you will where you will create a startup in just 60 hours. Whether you are a student, graduate, or young professional or want a change of career direction, INNOspace Weekend is for you!
www.innospace-weekend.de

 

18.09.2017-20.09.2017 – SaaStock Ireland, Dublin
SaaStock 2017 will be the biggest conference in Europe for global SaaS companies of all stages to meet and network. If you want to build your sales pipeline and meet with SaaS investors, then SaaStock is the place to be. Whatever your objective for attending Europe’s leading SaaS Marketplace, the outcome is growth for your SaaS Business.
www.saastock.com

 

19.09.2017 – Signal London 2017 UK, London
If you’re a developer, product manager, enterprise architect, CTO or CEO, then SIGNAL London is the event to be at on Sept 19th. This year, SIGNAL will be opening up three content tracks filled with inspiring developer and strategy sessions, there will be loads of networking with more than 600 liked minded Doers, and the legendary $BASH party will arrive in London for the first time! www.twilio.com

 

19.09.2017-21.09.2017 – Zukunft Personal Messe/Start-Up Village Germany, Cologne
The start-up area also has plenty of surprises up its sleeve. A new spirit of change can be sensed at the exhibition stands! The challenges of the modern working world require new technologies, recruiting approaches and working methods – this has spurred many young entrepreneurs into action. In the Start-up Village HR, young entrepreneurs show you the new products they have developed at first hand.
www.zukunft-personal.de

 

21.09.2017-22.09.2017 – NEXT 2017 Germany, Hamburg
Two days, more than 1,300 digital minds, a vibrant and inspiring atmosphere: Join the conversation on how emerging technologies and digital products are shaping the world we live in – and explore what that implies for you and your business at NEXT Conference 2017 at Reeperbahn, Hamburg.
www.nextconf.eu

 

24.09.2017-26.09.2017 Bits and Pretzels, Germany, Munich – (recommend)
With 5.000 participants the biggest German startup event. You can get 10% discount with the promotion Code Venionaire.
bitsandpretzels.com

 

25.09.2017-26.09.2017 – Sigfox World IOT Expo Czech Republic, Prague
Sigfox, the world’s leading provider of connectivity for the Internet of Things (IoT), and SimpleCell, the exclusive Sigfox Operator in the Czech Republic invite you for the first Sigfox World IoT Expo, taking place in Prague, Czech Republic, on September 25th – 26th 2017.

 

OCTOBER

04.10.2017-06.10.2017 South Summit Spain, Madrid
South Summit is the leading Event from the south, connecting the most innovative entrepreneurs with the most important investors in the world and the corporations seeking to improve their global competitiveness through Innovation.
investors. southsummit.co

 

04.10.2017-05.10.2017 – IP Expo Europe UK, London
IP EXPO Europe is Europe’s number ONE IT event for those looking to find out how the latest IT innovations can drive their business forward.

 

06.10.2017-07.10.2017 – IdeaLab! – Germany, Vallendar (recommended)
The event is organized by the university WHU – Otto Beisheim School of Management in Vallendar, Germany. It offers Investor Speeddating, Workshops and Pitch Battles.
www.idealab.io

 

09.10.2017 – Shoptalk Europe Denmark, Copenhagen
Shoptalk Europe is the only large pan-European event for innovation in retail and ecommerce, and covers the evolution of how consumers discover, shop and buy. We fill a major industry gap by bringing together over 2,000 innovators, including 250+ world-class speakers, from all of Europe, all ecosystem stakeholders and all industry verticals.
www.shoptalkeurope.com

 

12.10.2017-13.10.2017 – herCAREER Germany, Munich
herCAREER the career exhibition for female graduates, women in specialist and executive positions and female founders. herCAREER contrasts with other career exhibitions due to the wide exhibition offers.
www.her-career.com

 

13.10.2017-14.10.2017 – Deutsche Gründer- und Unternehmertage DEGUT Germany, Berlin
The deGUT is the largest trade fair for start-ups and entrepreneurship in Germany. It provides information, advice and inspiration on starting off in the world of selfemployment and running an own business.
www.degut.de

 

16.10.2017 – WHS Startup Track 2017 Germany, Berlin
Held under the high patronage of Hermann Gröhe, Germany’s Federal Minister of Health, the WHS Startup Track 2017 is looking for outstanding ideas that have the potential to revolutionize healthcare and improve global health. It provides young entrepreneurs with access to world leaders in science, industry and politics, and gives them unparalleled opportunities to set up future collaborations and get to know potential mentors, investors and advisory board members. WHS Startup Track 2017

 

18.10.2017– Webrazzi Summit  – Turkey, Istanbul
The most influential internet conference in Turkey.
www.summit.webrazzi.com

 

21.10.2017-22.10.2017 – Entrepreneurship Summit 2017 – Citizen Entrepreneurship Germany, Berlin
The Entrepreneurship Summit brings entrepreneurs, artist, scientist, etc. together to share, learn and to connect.
www.entrepreneurship.de

 

25.10.2017-26.10.2017 – The Business Booster by Innoenergy Netherlands, Amsterdam

TBB is a two-day international networking event that connects leading industries and bright minds from business start-ups, leading energy companies and SME’s to enable tomorrow’s sustainable energy solutions today.

 

25.10.2017-29.10.2016 – Os!o Innovation Week – Norway, Oslo
Oslo Innovation Week is a five-days series of events held in Oslo, Norway each October.With 61 events, 184 speakers, 100 pitches and 10700 visitors (in 2016) the Olso Innovation Week it is one of the biggest startup events in the north.
oiw.no

 

NOVEMBER

02.11.2017-03.11.2017 – NOAH 2017 London UK, London (recommended)
Focused on connecting capital with great companies and helping service providers to find relevant customers.
NOAH Berlin

 

06.11.2016-09.11.2017 – Web Summit, Portugal, Lisbon – (recommended)
Hugh startup event with more than 50k attendees with top-tier speakers and leading corporations participating.
www.websummit.com

 

15.11.2017 – Big Data London UK, London
Big Data London will host leading, global data and analytics experts, ready to arm you with the tools to deliver your most effective data-driven strategy.
www.bigdataldn.com

 

14.11.2017-16.11.2017 – Smart City Expo World Congress Spain, Barcelona
Over 16.000 participants and 420 speakers attended the event 2016. The congress will bring together over 400 global influencers and innovators to share knowledge, debate the challenges faced by our cities, encourage out of the box thinking and inspire a worldwide call for action in order to develop smarter and more sustainable cities.
www.smartcityexpo.com

 

23.11.2017-25.11.2017 – Zurkow Startup Festival Poland, Krakow
The Zurkow StartUp Festival connects the vibrant StartUp communities in Zurich and Krakow. Get inspired by interesting talks and workshops. Network in a relaxed atmosphere or enjoy live music by Swiss and Polish artists in one of our partner clubs.
www.zurkow.org

 

28.11.2017 – hub.berlin Germany, Berlin
hub.berlin is Europe’s interactive business festival for digital movers and makers. Key players of Europe’s leading industries, politics and 500+ startups come together in a unique environment to discuss, shape and experience the digital transformation.
hub.berlin

30.11.-01.12.2016 – SLUSH  Finland, Helsinki
Slush brings together the leading actors of the global tech scene to Helsinki for something very special. Described by many as “Burning Man meets TED”, the event has grown in just a few short years to 17,500 attendees and 1 million live stream viewers.
www.slush.org

 

DECEMBER

06.12.2017-08.12.2016 – OEB 2017 Germany, Berlin
23rd global, cross-sector conference on technology supported learning and training.The conference is likely to attract over 2,200 education and technology professionals, entrepreneurs and policy-makers from over 100 countries.
oeb.global

 

Le Web France, Paris
The #1 European Internet event, where more than 4000 entrepreneurs, leaders, investors, bloggers and journalists gather together.
www.leweb.co

 

Who is a typical Business Angel in Austria?

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Austria has a long tradition in excellent universities, technology and economics. Combined with several government efforts to support startups, this has led not only to a higher number of startups, but also to a more tangible startup culture in the country. On the other hand every startup ecosystem needs smart money to florish. So who are these venturesome people, investing in early-stage companies?

The typical Business Angel in Austria is

  • male,
  • in average 46.48 years old,
  • married with children,
  • and has done 7,6 investments
  • for a total of € 1.078 Million

Information and communication technologies constitute the most popular sector by far. If you want to find out more about Angel Investors, we are always happy to help.

Training program for business angels

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Investing in startups often turns out to be much more complex than it may seem at first glance, and it generally involves a high degree of risk.

Training courses for professional angel investors
You need to know a lot to be successful as a business angel: How do I guarantee a high-quality deal flow? What is the methodology behind efficient startup analysis? How do I professionally monitor and manage my portfolio? These are important topics you will learn in our early stage investment training program. The program is modular and very flexible. The course  is divided into two parts: during the first part – “pre-investment” – participants will learn how to set up a professional investment process and how to implement it, followed by financial planning methodologies and major contract terms negotiations. The second part – “post-investment” – revolves around the necessary steps once the investment has been made. It includes modules such as exercises and mediation methods for the active portfolio management, business development, follow-on financing and the successful exit strategies. The course is suitable both for active investors who want to refine their expertise and their methodological skills, as well as for first time angels.

The world’s first ISO certification for business angels
Our classes can also be attended in order to prepare for the world’s first business angels ISO certification, the “Certified Business Angel (CBA)”. The CBA serves as a seal of quality for startups as well as for fellow (co-)investors. It consists of a written exam and an oral presentation, carried out by the WKO quality academy Incite.

For more information about the program, have a look at the details or contact us.

Qualitätssiegel für Business Angels verliehen

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Wien, 19.03.2015. „Business Angels sind unverzichtbare Impulsgeber für die Wirtschaft. Als erfahrene Unternehmer geben sie neben Geld auch ihr Wissen und ihre persönlichen Netzwerke an die nächste Generation weiter“, stellte Alfred Harl, Obmann des Fachverbandes Unternehmensberatung und Informationstechnologie (UBIT) der Wirtschaftskammer, gleich bei der Begrüßung fest. Gestern Abend lud die incite, die Qualitätsakademie seines Fachverbandes, zur feierlichen Verleihung des Titels „Certified Business Angel (CBA)“ ins Hotel Sacher. Das Zertifikat verliehen bekamen (Foto von rechts) Christian Vogrinec, Gründer der Grazer Value Impact Consulting, Otmar Kühner vom Science Park Graz, Carlos Fernandez de Retana vom INiTS Gründerservice und der mehrfache Unternehmensgründer David Dietrich. Die vier Manager hatten sich in einem sechs Module umfassenden Kurs beim Business Angel Institute erfolgreich auf die Prüfung vorbereitet. Anschließend zur CBA-Urkundenverleihung lud der CMC Masters Club zum Austausch mit Außenminister Sebastian Kurz ein, der unterhaltsam über seinen Werdegang und über aktuelle Herausforderungen in der Außenpolitik erzählte.

„Wir haben gemeinsam mit einem internationalen akademischen Beirat und der incite die Zertifizierung ‚Certified Business Angel (CBA)‘ entwickelt, um die Kompetenzen und Erfahrungen von Business Angels gegenüber Startups transparent zu machen und die Entwicklung der gesamten Szene voranzutreiben. Wir wollen mit unserem Programm neben etablierten Business Angels auch die heranwachsende Investorengeneration ansprechen und sie umfassend auf diese verantwortungsvolle Aufgabe vorbereiten“, erklärte Berthold Baurek-Karlic, Mitgründer des Business Angel Institute. „Insgesamt spielen alternative Finanzierungsformen und Angel-Investments für die Unternehmensfinanzierung und damit für die Wirtschaft eine immer wichtigere Rolle. Denn gerade Startups können zu Beginn nur unzureichend auf Kredite von Banken zurückgreifen. Business Angels schließen diese Finanzierungslücke und leisten damit einen gesamtwirtschaftlich enorm wichtigen Beitrag“, ergänzte Business Angel Institute Präsident Herwig Rollett.

 

Location, Location, Location

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There is an old saying in real estate that the three most important factors are location, location, location. Given the hype around startup hubs, one might think that the same holds true for company and investment prospects.

Lots of places around the world have been trying to position themselves as the next Silicon Valley (while at the same time, people have criticized the echo chamber nature of the Valley). Even with favorable trends, Europe certainly still has some homework to do: Among the top 20 cities of the world as measured by venture capital investments in the $5-200m range, 5 are in Asia compared to currently only 2 in Europe (London and Paris; no, not Berlin, and not Vienna yet either), the recent study Rise of the Startup City: The Changing Geography of the Venture Capital Financed Innovation found. However, Europe does continue to get more and more attention as a location for startup hotspots, as evidenced in a recent Forbes article.

While the hype is often superficial, there are sound economic and policy reasons for supporting specifically the kind of companies that are also attractive to early-stage investors like business angels and venture capitalists. Companies geared towards high growth are responsible for disproportionately high contributions to important economic indicators. The Octopus High Growth Small Business Report examined the situation in the United Kingdom and concluded that high growth small businesses (defined as £1-20m turnover and >20% average annual turnover growth), while accounting for only 3.4% of gross value added in absolute terms, contribute 36.2% to the growth of national gross value added, and a whopping 68% to employment growth.

No wonder then that countries like Austria are not content with qualitative indications like the tremendously successful annual Pioneers Festival (which regularly sells out its 2,500 available tickets to participants from all over the world), but also start to look at quantitative measure in earnest.

Now where does all this leave us with respect to the overarching question of how to deal with the location factor? Everybody seems to agree that among all kinds of economic growth, the growth of startup ecosystems is particularly desirable. But maybe we should look beyond the pure numbers and the “we (try to) get the largest slice of the pie” mentality by remembering some old wisdom of early-stage investors: That making a larger pie together can benefit everybody much more than fighting over how to slice the existing pie ever could. This also applies to locations for startups and investors. We should promote more and better knowledge transfer not just within startup ecosystems, but also across borders. Let’s all talk. Let’s all win.

FFF – Family, Friends, Fools

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Love Money vs. Smart Money

Small start-ups are always in search for promising financial support. Usually there are two favored options, either to turn to family members and friends or to hire a Business Angel in order to get the business started. In other words we are speaking of love money adverse to smart money. However, what exactly does this mean? Love money is received primarily from the people in the environment of founders like friends and family, whereas smart money takes a step forward and provides money, besides knowledge and important know-how. Smart-money investors are generally sophisticated business people, who bring an understanding of the financial markets, strong networks and an intuition for spotting trends before others with them.

The advantages of love money are obvious: good rates, lenient credit standards and the chance for FF-investors to take part in the start-up entrepreneur’s success. However, there are some notable disadvantages to love money that should be considered too. First of all, relations can suffer. The personal connection might lead love money-investors to ignore the uncertainty of such a high-risk business venture. Expectations regarding repayment, for instance, can be too high which leads to disappointment, if the friend or family member had not been clear about the possible risks. Another problem could be a lack of documentation. If an agreement is too unclear and not properly documented, it could lead to troubles later on. Furthermore, if the terms and conditions are documented, another potential obstacle could be failing to follow them. The best paperwork is useless, if you do not care about supervision.

 

 

Conflicting interests

One special case concerning troubles in this area of investments is now a Business Angel who takes on the role of an FF-investor. This of course could happen, if a family member or friend needs financial help to build up an enterprise. A Business Angel – usually investing in third-party companies – finds himself in the situation of providing both, love money as well as smart money. Obviously this is a very attractive combination for any aspiring entrepreneur, but it brings definitely some difficulties for the investor with it. The most important difference for a Business Angel who invests in some friends or family member’s start-up, is the way of communication which will not be the same as with any stranger. Everything will be discussed in a rather cautious manner, since you are dealing with very familiar people. They may very well address the “private” person in you, however the issues are predominantly relating to business. This leads to a discrepancy that is not so easy to handle.

Warning and advice

To manage the delicate tightrope walk between being the generous friend or a family member on the one hand and a cautious as well as a reliable investor on the other hand, it is extremely important for the Business Angel to be aware of the risks behind such an FF-investment. It could easily happen that you don’t judge things the same way you would do with a normal business client. Regular updates from the start-up entrepreneur, for instance, take a crucial part in the mentoring process. If they are missing, appear in irregular intervals, or do not address critical business issues in-debt, a Business Angel would normally disapprove. On the contrary, the same Angel is in danger to overlook this behavior, if he knows the person very well in private. But then look out: a nice friend might not necessarily be a good businessman! As for any other investment as well you should always keep in mind that the friend or family member could also fail. Some Angels do not invest, if there was no FFF-seed investment placed, as they will figure: “Not even the family of a founder trust him, why should I?” All in all handling the circumstances and paying attention to separate emotional and business issues as clearly as possible should be of first priority.

 

 

Caroline Ramberger, Bakk. phil.:

Miss Ramberger finished her studies of Journalism and Communication Science at the University of Vienna and is currently studying International Business Administration at the Vienna University of Economics and Business.

 

 

Sources:

Debaise, Colleen: The family plan: https://online.wsj.com/article/SB119562618703400389.html# (2013-07-25)

Ennico, Cliff: Accepting money from friends & family: https://www.entrepreneur.com/article/51542 (2013-07-09)

Robbins, Stever: Asking friends and family for financing: https://www.entrepreneur.com/article/44612 (2013-07-09)

Zwilling, Martin: How to get funding from friends and family: https://www.entrepreneur.com/article/217651 (2013-07-09)

Zwilling, Martin: Don’t hurt friends and family investors who love you: https://www.forbes.com/sites/martinzwilling/2013/04/16/dont-hurt-friends-and-family-investors-who-love-you/ (2013-07-09)

The Deals of VIPs – Celebrity 4 Equity

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Celebrity 4 Equity is a big trend in the venture industry but why? Being famous opens doors to events, people, media and wealth. The combination of access to a great amount of capital, a worldwide network and experience of dealing with the public view through media is very attractive for fortunate entrepreneurs. Big businesses have been using this for years, investing a lot of money in testimonials to align their brand with some star appeal – think of George Clooney and Nespresso. Celebrities and their public impact have proven to be one of the best marketing strategies, but it need not be remunerated in cash. Start-ups are usually in a constant shortage of cash, which makes them very creative when it comes to media impact, like guerrilla marketing for instance. Celebrity for equity is a concept where celebrities offer their media effectiveness as a testimonial, receiving equity (company shares) or participation in sales in return. Convincing the right star, with significant impact in target groups and markets can lead to phenomenal results.

A recent example for this type of investment is given with the famous Rap-Super-Star “50 Cent”, who supported the Vitamin Water Glaceau as a testimonial. Glaceau was sold in 2007 for 4.1 Billion Dollar in cash. In exchange for his marketing and brand-building activities “50 Cent” received 10% in shares of Glaceau which resulted in a profit of almost 400 million dollars. Celebrities investing in startups may be seen as classical Business Angels, like Ashton Kutscher. Ashton has been investing in quite a few US and Berlin-based startups yet.

Entrepreneurial Investments

In contrast to business angel investments, some celebrities place conventional venture capital or private equity investments via associate companies. One of these famous companies is Elevation Partners founded by Bono (U2) in 2004. Apart from investments in media, entertainment and technology businesses Elevation Partners bought 2,3% of Facebook in 2009 for 90 million dollars. After the initial public offering IPO of Facebook, the stake was worth about 1,5 billion dollars.

Another celebrity who turned into an entrepreneur is the television personality Kim Kardashian who founded a clothing brand D-A-S-H [Update: Dash closed in 2018] together with her sisters Kourtney and Khloe which leads to the so-called classical celebrity investments like restaurants, fashion-labels, nightclubs, record labels or fragrances. Probably these businesses are easier to understand and therefore celebrities feel more comfortable with them.

However, there are very few celebrities with such a strong commitment to the startup scene like Ashton Kutcher but the demand for start-up-multipliers in Europe is rising. Nevertheless not every celebrity is capable of offering expertise to support a project with the so-called traditional way with funding, deep business know-how, the knowledge of classical management competences and network.

What about social entrepreneurship and celebrities?

Some celebrities are serial entrepreneurs like Victoria Beckham or P-Diddy. Both of them have built quite a decent amount of businesses, like Bad-Boy Entertainment, a holding for various companies or DVB Style, a fashion label by Victoria Beckham. Even so, both use their fame to improve awareness for some social issues like funding a business school in Harlem or supporting a fashion campaign against skin cancer together with Marc Jacobs. Another example of social and clean-tech investment is Kevin Costner’s oil-water separator, which was used in the BP-Deepwater Horizon oil rig disaster in the Gulf of Mexico in 2010. Kevin Costner invested about 20 million dollars over more than a decade into the business.

How about failing?

Of course, there are some celebrities who failed in business-like “The Hills” star Heidi Montag who founded a clothing line called “Heidiwood” which failed poorly after one year. Another example is “The Fashion Café”, which was established by the four mega supermodels Claudia Schiffer, Naomi Campbell, Elle McPherson and Christy Turlington, which had do be closed after three years of struggling.

The idea of uniting synergy effects between celebrities and startups is a very well-known and proved concept of investment even though these projects can fail. Generally spoken celebrity for equity can be a serious benefit for both sides.

“Talk to as many angels as possible before you start investing!”

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While the European Business Angel Ecosystem is yet to mature, it is already well established in North America. In our interview, Marianne Hudson, Executive Director of the Angel Capital Association, explains differences and similiarities in the angel ecosystem in Europe an North America.
First, please tell us a little bit about yourself so that our readers get to know you better.
I have led the Angel Capital Association, the professional association of angel investors in North America, for six years and helped in its startup before then. ACA has 200 member angel groups, which is about 8,500 check-writing business angels.  I’m based in the Kansas City, Missouri area – right in the middle of the United States – because our angel education and research work got its start from the Ewing Marion Kauffman Foundation, a philanthropic foundation in Kansas City and I wanted to stay here.  I am an angel investor myself and belong to two angel groups in Kansas City (both ACA members, of course).  It has been great fun to work with angels here and other parts of the world. While no two think the same way, I find they really want to share their experiences and ideas with each other, and are just a lot of fun.

How well are business angels organized in North America?

It’s interesting.  ACA has about 375 American angel groups in our database, which may be the most of any country in the world.  However, about five percent of all American angels belong to angel groups.  Instead they invest individually or through informal groups of friends.  I believe the groups are very important as the hubs of deal flow in their communities, often connecting with other smart investors in their social networks.  They also syndicate with “unaffiliated” angels, family offices, VCs, and other private equity investors.

Many American and Canadian angel groups are very active and sophisticated, and importantly they have become very good at co-investing with each other in order to provide the amount of capital that innovative entrepreneurs need while diversifying their investments.  About 70 percent of these groups are networks, in which each investor decides whether they want to invest in a particular company.  Another 22 percent are funds, where members pool their capital up front and then take a majority vote on investment opportunities, and the remainder are networks with sidecar funds, kind of a cross between networks and funds.  In North America, all angel group members must meet specific requirements for wealth or income because of our securities regulations, and many groups set guidelines for total investment and participation in the group, such as serving on a due diligence team.


Do individual business angels tend to behave differently in North America than elsewhere?

That’s a good question, and I don’t completely know the answer.  From the people I’ve met, I would say there are often similarities in how angel investors throughout the world make investment decisions.  It may be that North Americans are not quite as conservative or risk averse as investors in other continents, but I always need to point out that much of America is very different than Silicon Valley or Boston – there is plenty of fear of failure in large parts of the US and Canada.  Another difference might be that American angels are more privately based than many other countries, meaning that there is less connection to government support programs and policies.

In the US and other countries that have been involved in formal angel investing for a longer period, there is likely a larger percentage of the business angel community focused on what happens after an investment is made.  How do we as angels make sure the entrepreneurial company successfully grows and exits?  There is considerable focus on mentoring, being a good board member, connecting companies to follow-on investors and partners, and helping portfolio companies through the corporate acquisition process.  This is good for the entrepreneur and the investor.


What kind of training for business angels do you have in North America?

ACA’s education and research partner, the Angel Resource Institute, is a global leader in educating angel investors, entrepreneurs, and other key parts of the startup support community.  ARI conducts 60 to 70 in-person seminars and workshops every year, mostly in the US but increasingly in other countries.  The focus is on practical best practices in angel investment, from thinking through portfolio strategies, to finding deals, screening and due diligence, term sheets, valuation, and supporting the companies post-investment.  ARI also has courses on how to start an angel group, trends and statistics in raising equity capital, and pitching to investors.  ACA supports these workshops with two professional development conferences each year – 660 investors attended our 2013 ACA Summit in April.

These one-day or half-day courses are a great way to build investment skills and activity.  Many long-time angels have said they wished they had taken the seminars earlier, as it would have saved them lots of money they lost.  We know, however, that many angels need shorter, on-going training via the Internet or through monthly angel group meetings.  So ACA, ARI, and other organizations put on Webinars and provide quick background for quick education sessions.

What would be your most important advice for future business angels?
There are so many things, but I think it is important to talk to as many angels as possible before you start investing and read up on best practices and experiences of good angel investors.  This can help you set expectations, understand some basic terminology and practices, and help begin your personal strategy for angel investment.  It may also help you understand the value of angel groups and getting some education in the practice of angel investment.

Launch of the Business Angel Institute

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The Business Angel Institute professionalizes angel investors through research, education and networking.

During today’s EBAN Congress the new Business Angel Institute is officially launched and presented. Founded and sponsored by Venionaire Capital, the Institute is an international organization located in Vienna, where this year’s Congress is held. The Institute

  • approaches the subject of business angels on a scientific level
  • promotes an international exchange of experience
  • and provides further education to existing and future business angels.

“Alternative forms of financing and angel investments are becoming ever more important for funding companies. Therefore, we look at business angels and their relationship with startups from a scientific perspective”, explains Dr. Herwig Rollett, president of the Business Angel Institute. The Institute’s establishment is also geared at making angel investments more widely known as a source of funding.