HeBAN aims to provide a variety of services to existing and potential private investors, such as:
- Organization of educational seminars, training workshops, events, and networking opportunities
- Support of start-up deal flow to local investor groups
- Encourage syndicated investments among Business Angels
- Foster cooperation with private and public partners
- Strengthen exchange and cooperation with international partners
- Lobbying of private investor interests to local, regional, national and international authorities
- Communication of latest research, news and insights about Angel investing
- Provision of tools and best practices for private start-up investment
- Help set up of local Business Angels Groups
Studies and Tools
- HeBAN provides you with a list of useful studies and tools related to a variety of topics important for private equity investment. This list is to be continually updated. We gladly receive any suggestions from your side to add to the list.
1. Business Angel Investing
2. Early Stage Investing in Greece
3. Syndicated Investing
- FiBAN Business Angel Week with Bill Payne – Syndication (Part 1)
- FiBAN Business Angel Week with Bill Payne – Syndication (Part 2)
Top Advice for Private Investors
HeBAN is happy to forward the following list of useful tips for Business Angels collected by our fellow BAN in Ireland Halo Business Angel Network.
- The most likely outcome of any one angel investment is failure. However studies show, overall, business angel returns are enhanced by using a portfolio approach to investing;
- It is important at the outset for you to decide how you determine success;
- The relationship between investor and entrepreneur is like a marriage but one with a planned divorce;
- Start the process of relationship building well ahead of when the money is needed;
- You should undertake due diligence on the company prior to deciding to invest;
- Entrepreneurs can also undertake due diligence on you, checking your record of support or otherwise, so be prepared for this…;
- You should commit to a non-executive director or advisory role but not an executive role;
- Make sure that every contact with a company addresses the top three investment criteria in some form;
- The best exit is a trade sale for cash…it usually maximises value for all shareholders;
- The revenue potential of the company must demonstrate a scalable business that is capable of producing significant returns for you;
- The best business plans have a great executive summary – the point of an executive summary is to succinctly sell the investment opportunity, not to just describe the business;
- A compelling and fully costed business plan is essential;
- It is important that the company’s management team understand and be on top of the numbers;
- Investors rarely want to 100% fund a business and will take comfort from other funders;
- Founders should have ideally had made or intend to make a cash equity investment in the company, i.e. have ‘skin in the game’;
- Have a realistic valuation expectation – entrepreneurs have to be incentivised;
- An equity deal is not just about the headline valuation;
- An apparently unattractively high valuation can be mitigated by a liquidation preference;
- When considering an investment, you need to take into account any potential future funding rounds and the effect that may have on your ultimate shareholding and returns;
- Whilst there have been many successes by individual investors, participating in an angel syndicate can have significant benefits; and
- Syndicates need to be well managed to take advantage of the benefits and mitigate the pitfalls; the best syndicates use a charter.
- Investing in private companies, whilst high risk, can be rewarding and worthwhile with positive financial and non-financial outcomes. If it accelerates the growth of company then entrepreneurs will reap similar rewards.
If you are interested in joining HeBAN or one of the local Business Angels groups please contact us:
Membership applications for HeBAN are reviewed and approved by HeBAN’s Executive Committee. We appreciate if you can name two recommendations.
Are you creating a local Business Angel group? Come and talk to us.