STATISTICS COMPENDIUM

BASED ON THE INFORMATION PROVIDED BY BUSINESS ANGEL

NETWORKS HAVING RESPONDED TO THE SURVEY CONDUCTED
IN 2007

Version 3 February 2008

Prepared by the EBAN Secretariat
Rue Abb Cuypers 3
B-1040 Brussels
T : +32 2 741 24 70
F : +32 2 741 79 10
E : info@eban.org
W: www.eban.org
EBAN is supported by:

Warning

By nature, the informal venture capital industry is difficult to quantify.

The data presented and analysed in this document are based on figures provided to the EBAN
Secretariat either by national federations of networks or regional business angel networks in Mid-2007,
concerning activities undertaken by the networks in 2006.

We would like to remind that the Statistics Compendium is the accompanying document of the
Directory of Networks. The numbers listed represent the figures gathered from responding networks in
Europe and aggregate data provided by federations of networks in several countries, and by no
means the extent of business angel activity existing in Europe.

The figures presented do not quantify the larger angel activity which takes place outside of business
angel networks.

They are an illustration of trends in the industry and not a global picture of the importance of business
angel finance in the support of the creation of new enterprises in Europe.

Executive Summary of the findings on business angel activity recorded by networks

In 2007, on a total of 234 networks identified in Europe1, EBAN has analysed information coming from
117 networks (50% return rate).
This number comprises information provided both by national federations and regional networks to the
EBAN Secretariat. Activity from member and non-member networks is recorded.
Aggregate data was used when available. The following federations of networks have provided
aggregate data based on complete information received from their member networks:
- SVCA (Sweden)
- France Angels (France)
- CIDEM (Catalonia)
- BBAA (UK except Scotland)
- LINC Scotland (Scotland)
Most of the aggregate data available concerned:
- Number of deals done
- Amount invested in 2006
- Average amount of the investment
- Number of angels recorded by the federation
Figures using aggregate date provided by the national federations are marked with an *
2004

2005

2006

111

97

117

12.773

8.227

10.331*

Number of women investors

n/a

246

248

Number of members recruited in the last year

n/a

n/a

1942

Number of women recruited in the last year

n/a

n/a

78

Number of projects received by the networks

n/a

n/a

13.1892*

Number of projects submitted to the investors

9.471

6.066

4.4043

Ratio deals received/deals submitted

n/a

n/a

33,39%

Ratio deals submitted/investments made

n/a

n/a

19,15%

Number of deals

580

653

843*

Total amount invested

n/a

130.716.719

149.473.857*

Average amount of the deal

n/a

200.178

177.311

Number of networks in operation

228

211

234

Number of commercial/for profit networks recorded

35

23

15

Number of responses
Number of active angels

Based on the estimates from its national federations on total angel activity (not only activity recorded
through angel networks), EBAN estimates that the total number of angel investors active in Europe is
around 50.000, investing around 3 billion Euros a year.
1

Excluding Russia, Turkey and Israel. Including these three countries the number of networks 243. Due to the low
level of information provided, these countries have not been included in the analysis.
2
Does not include figures from the online matching platform Angel Investment Network
3
Does not include figures from the online matching platform Angel Investment Network

Characteristics of European business angel networks

The following findings correspond to an analysis of the information collected from the business angel
networks in operation in 2006. Individual data is to be found in the Directory of Networks 2007.
Funding sources
68 networks answered the question about how the business angel network is funded.
-

24 receive some form of regional funds (from 10% to 100% of the networks budget)
12 receive funding from national funds (from 8% to 100% of the networks budget)
15 receive funding from European funds (from 8% to 100% of the networks budget)

All networks in operation in Poland receive European funds to support their operations (from 83%
to 90% of their funds). This finding illustrates the importance of the impact of European funding
(European Regional Development Fund) to support the creation and first year operations of
business angel networks in Eastern Europe.
-

38 charge fees to business angels (representing 1% to 100% of the networks budget).

5 networks are only funded through fees charged to their member business angels.
-

23 charge fees to entrepreneurs (representing 3% to 100% of the total budget).

Only 1 network surveyed is funded solely by fees receives from entrepreneurs.

-

2 use private funds

31 receive some form of sponsorship
22 use other funds (municipal funds, registration fees at events, success fees).
60%
50%
40%
30%
20%
10%
0%
National Regional

EU

BA

Sponsor

ENTR

Private
funds

Other

Origin of networks' budget

9 networks charge success fees on entrepreneurs as a percentage of the investment made by the
angel (s), from 2 to 5%.
8 networks charge success fees on angels as a percentage of the investment made in the company,
from 2.5 to 5%.

Compared to data collected in 2006, the trends concerning the origin of the budget of business angel
networks is the following:
Regional funds

Networks in mature markets receive less and less

support from their regional or national authorities, and
increase their share of budget from sustainable
sources. They are slowly striving to become
independent from public forms of support
Support from European funds is growing as new
networks are being created in regions of Europe
lagging behind the EU 15, i.e. Southern and Eastern
Europe, and Objective 1 regions.
Regional funds are particularly used in Belgium,
Spain, the United Kingdom and Ireland.
National funds are particularly used in Finland and
Austria.

National funds
European funds
Fees from business
angels
Fees from
entrepreneurs
Private funds
Sponsorship
Other

Annual budget of business angel networks

33 managers provided information on the average annual budget of their business angel networks.

16
14
12
10
8
6
4
2
0

Budget

<50.000

51.000100.000

101.000200.000

>201.000

>600.000

The 3 main cost items are: staff costs, marketing costs, and organisation of events for members.

Matching services used by the business angel networks

68 networks answered this question. The distribution of answers is illustrated in the graph below:
77%
80%

67%

70%
60%

59%
53%

44%

50%
40%

31%

31%

30%
20%
10%
0%
Newsletter

Database

Workshops

Investment
Clubs

Investment
Forums

Online
matching

Other

Tools used by business angel networks to recruit entrepreneurs

70 networks answered this question. The distribution of answers is illustrated in the graph below:

80%

72%

Newsletter

70%

70%
60%

Events

77,14%

74,28%

Targeted publicity

57%

Visit to enterprises

50%

44,28%

42,85%

40%
30%

Regional press

32%
28,50%

Cooperation agreements with local

staekholders
Word of mouth

20%
Investment Readiness Programmes

10%
Other

0%

Tools used by business angel networks to recruit investors

69 networks answered the question. The distribution of answers is the following:

Events

78,26%

80%

Newsletter

67%

70%

60,80%

60%

Targeted publicity

60%

Contact with alumni associations

48%

50%
40%

Contacts with large corporations

37,68%

37,68%

Article in national/regional press

30%

31,88%

Cooperation agreements with local

stakeholders

30%

Word of mouth

20%

14,50%
Investor readiness programme

10%
Other

0%

Sectors of investment of the deals concluded through the networks in 2006

52 networks reported on the sectors of investment of deals concluded in 2006 by their investors.
11 networks reported 100% of deals done in the ICT sector.
Other sectors included: environment, films, games, tourism, food, electronics, culture and security.
84,61%
90%
80%
ICT

70%

Biotech

60%

53,84%

52,00%

Energy

50%

Retail & Services

38,46%

38,46%

40%
28,84%

Health related

30,76%

30%

Manufacturing
Other

20%
10%
0%

Number of investors per group

30
25
20
n investors

15
10
5
0
>50

50-100

100-150

150-200

>200

Number of employees
The 74 networks reported 184 employees in total.
14
12
10
8

n employees

6
4
2
0
0

0,5

1<X>2

2<X>3

X>3

Co-investment funds
In 2006, 22 networks reported co-investment funds operating alongside business angel networks.
5 of the 22 operate in the United Kingdom, including 1 in Scotland (Scottish Co-investment Fund).
Exits
11 exits were reported by responding networks.

Qualitative analysis
This year, EBAN added three new questions in relation to:
The evolution of the number of investors belonging to the network
The perceived main reasons why entrepreneurs projects are rejected
Pre-money valuation analysis
This will enable readers to:
Have an understanding of current evolution of the business angel network industry
Identify and understand the requirements of angels investors
Identify the main areas necessitating support in order to improve the number of projects
receiving finance from business angels.
Description of the evolution of the number of investors belonging to the networks in 2006
82 networks provided information on this question.

60

52
The number grew significantly

50
The number grew slightly

40

The number remained the

same
The number decreased slightly

30
18
20

11

12

10

The number decreased

significantly

The general trend is towards an increase in the number of investors per network in the future.
Description of the three main reasons why entrepreneurs projects are rejected by the
investors
67 network managers provided information.
The two outstanding reasons why entrepreneurs projects are rejected are:
Problems related to the management team (47 answers)
Weak business model/no clear Unique Selling Point (USP) (48 answers)
Other important factors included:
Weak business plan (14 answers)
Issues with the pre-money valuation (14 answers)
The project does not belong to the target group/sector of the investor (s) (18 answers)
The stage of development is too early or too advanced (12 answers)
Lack of investment readiness (9 answers)
Capital needs exceed funding capacity of the business angels (5 answers)
Too short time to investment, too high risk (5 answers)
The rest of the answers (from 1 to 4 answers) included the following perceived pitfalls: lack of strategy,
not in the regional focus, lack of availability of the investors, lack of financial commitment from the
founders, inability to scale the business, communication weaknesses.

Characterisation of the pre-money valuation as perceived by business angel network managers

60 answers were received.
28

30
25

Considerably over-valued
Slighly over-valued
On target
Slightly under-valued
Considerably under-valued

20
14
15
10

13

5
0

10

Evolution of the number of networks in Europe

1999

2000

2001

2002

2003

Mid 2004

Mid 2005

Mid 2006

Mid 2007

66

132

155

177

197

231

228

211

2364

250
200
150
100
50
0
2000

2001

2002

2003

Mid2004

Mid2005

Mid2006

Mid2007

The number of networks has stabilised or sometimes decreased in recent years in the mature
countries: the United Kingdom, Sweden, Germany, France, Belgium, Italy and the Netherlands. This is
due to the gradual professionalisation of the industry, when the most performing networks continue to
operate after the first years.
The number of networks has increased dramatically in Spain and Portugal over the years. France has
also witnessed a sharp increase in the number of networks created in 2006, mainly due to the high
awareness of the role of BANs created by the organisation of the Business Angel Week. The number
of networks is expected to reach 50 by the end of 2007.
Networks in Eastern Europe are also slowly being set up, with Poland taking a lead with 3 networks
and 1 co-investment fund operational since 2007.

Excluding Israel

11

Country
Andorra
Austria
Belgium
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Israel
Italy
Latvia
Luxembourg
Malta
Monaco
Norway
Poland
Portugal
Russia
Slovenia
Spain
Sweden
Switzerland
The Netherlands
Turkey
UK
TOTAL
Transnational networks

1999 2000 2001 2002 2003 Mid 2004 Mid 2005 Mid 2006 Mid 2007
0
1
4
0
0
1
4
1
0
0
1
0
2
0
0
0
0
0
0
0
0
0
0
1
1
1
1
49
66
0

0
1
6
0
1
1
13
43
0
0
1
1
5
0
0
0
1
0
0
0
0
0
1
2
3
1
1
52
132
0

0
1
7
0
4
1
32
36
0
0
1
1
12
0
0
0
1
1
0
1
0
1
1
2
3
2
1
48
155
0

0
1
7
1
6
1
48
40
0
0
1
1
11
0
0
0
1
1
0
1
0
1
2
2
2
2
1
48
177
0

0
1
75
1
8
1
48
40
0
0
3
2
10
0
0
1
1
3
0
1
1
1
3
97
3
3
1
518
197
0

0
1
5
2
86
1
40
40
1
1
1
2
12
0
1
1
1
7
1
1
4
1
11
28
7
3
2
519
230
1
231

0
2
6
2
8
1
38
43
1
1
1
12
1
1
1
0
7
2
1
4
1
20
28
7
5
2
3510
227
111
228

0
2
6
2
7
1
35
41
1
1
1
11
1
1
1
0
6
3
2
2
1
21
23
7
4
1
34
211
312
215

1
2
5
1
7
1
41
38
1
2
1
2
10
1
1
1
0
8
4
7
4
1
33
21
6
5
2
36
240
413
243

4 BANs operating in Flanders have merged into a single network called BAN Vlaanderen, with regional
antennas. Since the beginning of 2004, 4 networks are working together under the name EuBAN, referring to the
EuroRegio Meuse Rhine.
6
2 networks to be created in Autumn 2004, AgroBAN and CreativeBAN.
7
22 networks are in process of creation following a new program from NUTEK, the national BAN in Sweden.
8
Figures provided by NBAN up to Mid 2003. The figure for 2004 is derived from an update of the Directory of
Network 2003-2004 published by NBAN in 2004.
9
Estimation. Figures for that period not available.
10
Data provided by the British Business Angel Association, the new professional federation of UK BANs created
in 2005.
11
EuBAN as a tri-national network is counted in the Belgian, German and Dutch number of networks but not only
once for the total number of networks.
12
EuBAN, Go Beyond Ltd, and Icon Angels.
13
EuBAN, Go Beyond Ltd, Media Deals, and Icon Angels. EuBAN is already counted once in the total of
networks.

12

Comparison with the United States

Below are a few points of comparison with the United States. The data is issued form the latest study
from the Angel Capital Education Foundation, linked both to the Ewing Marion Kauffman Foundation
and the Angel Capital Association (www.angelcapitalassociation.org).
The main elements of distinction are the following:

Angels are organised in groups rather than in networks

Americans refer to investment per round where Europeans refer to deal. They use
investment per deal to refer to the individual angel investment.

ACA/EBAN data
Groups/Networks in
operation
Groups/Networks in
development
For profit networks
Investors operating in
group
Investment per round

Number of deals
Total amount invested
Montant moyen de
linvestissement

2006 (2005 activity)

United States
Europe
230
211

2007 (2006 activity)

United states
Europe
250
234

22

12

18

21

48% (of ACA

members)
~9,700

23.5%

48% (of ACA members)

6,4%

8227

~11,000

10.331

$241,528
(average for ACA
members)
n/a
n/a
n/a

200.178

For first 6 months,

average for ACA
members is $211,087
n/a
n/a
$241.528
(168.461)

177.311

653
130.716.719
200.178

13

843
149.473.857
177.311

Global European Perspective

Below is a table putting in perspective the recorded activity of angels in 2006 (active through
responding networks) and the European venture capital industry in the seed phase14.
Answers including data provided by the national federations are marked with an *
2004
European
Seed
Industry
Number of
deals
Amount
invested
Average
amount of
the deal

2005

2006

EBAN
Statistics

EVCA
Statistics

EBAN
Statistics

EVCA
Statistics

EBAN
Statistics

EVCA
Statistics

580

355

653

409

843*

477

n/a
n/a

147.771.000 130.716.719 96.497.000 149.473.857* 197.704.000

416.256

200.178

235.934

177.311

414.473

Figure 1: Evolution of the amount invested in the seed phase by recorded venture capital funds
(EVCA) and business angel networks (EBAN).

250.000.000
200.000.000
150.000.000

EBAN

100.000.000

EVCA

50.000.000
0
2005

2006

Figure 2: Evolution of the average amount invested by venture capital funds and business angels in
the seed phase.

500.000
400.000
300.000

EBAN

200.000

EVCA

100.000
0
2004

2005

14

2006

Seed phase according to the EVCA definition: Financing provided to research, assess and develop an initial
concept before a business has reached the start-up phase.

14

In 2006, the amount invested by the venture capital and private equity industry increased by 48.8%
compared to 2005. However, the role of business angels as main financial actors of the seed phase is
reinforced by the following graphs published by EVCA:
Figure 3: Stage distribution by percentage of amount invested in 200615
Seed

0,3%

8,0%

Startup

16,0%
Expansion

5,0%
Replacement
Capital

70,7%

BuyOut

Figure 4: Stage distribution by percentage of number of investments in 200616

Seed

4,4%

Startup

23,1%
25,8%
3,6%

Expansion
Replacement
Capital

43,1%

BuyOut

Comparison with the United States 2002-2005

Type of investment
VC Investments (billion USD)
Angel investments (billion USD)
Number of VC Investee companies
Number of angel investee companies

2002
21.8
15.7
2608
36000

2003
19.6
18.1
2409
42000

2004
22.0
22.5
2559
48000

2005
22.7
23.1
2626
49500

Source: Sohl 2006 and VentureXpert/PwC Money tree as of September 2006, published in Risk
capital for growing world-class companies: challenges for European policy, Markku Maula (Helsinki
University of Technology) and Gordon Murray (University of Exeter), published in September 2006.

15
16

EVCA Year Book 2007, p.49

EVCA Year Book 2007, p.52

15

Breakdown by country
Below is an illustration of the evolution of the number of deals, amount invested and average size of
the deal over the last two years, by EVCA members in the seed phase and recorded business angel
activity by EBAN (figures from national federations are marked with an *). EVCA figures are based on
the EVCA Year Book 2007.
Short summary of the findings:
The number of investments made by business angels in 2006 has increased, while the
average size of investment has in general slightly decreased. This finding echoes EBANs
other research which concludes that with the rise of syndicated investments business angels
are making smaller investments and diversifying their portfolio.
The number of investments in the seed phase by funds has increased overall in Europe. In
some countries the number has significantly increased (Germany, United Kingdom), and in
some cases has significantly decreased or is inexistent (France, Belgium, Switzerland).
The average amount invested is still superior by the venture capital funds, although in some
countries investments made by funds or business angels in the seed phase are not too
dissimilar.
The findings confirm the necessity to encourage further business angel activity in the seed
phase, as VC funds are not interested in this segment of the market and have a low to nonexistent record in some countries. In the latter business angel activity appear to be the main
solution to finance new innovative start-ups in the early phases of development.

AUSTRIA
Number of
deals/Investments
Amount invested

2005
EBAN Statistics (1
network)
6

EVCA
Statistics
0

2006
EBAN Statistics (2
networks)
10

EVCA
Statistics
2

1.566.000

1.800.000

4.325.000

261.000

180.000

2.162.500

Average size of the deal

BELGIUM

Number of
deals/Investments
Amount invested
Average size of the
deal

FRANCE

Number of
deals/Investments
Amount invested
Average size of the
deal

2004
EBAN
EVCA
Statistics
Statistics
(4 networks)

2005
EBAN
EVCA
Statistics
Statistics
(4 networks)

29

14

44

3.354.000

3.935.000

5.704.200

115.655

281.071

129.641

2004
EBAN
EVCA
Statistics (28
Statistics
networks)
146
13.600.000
93.150

15

3.588.000 7.070.075 126.000

239.200

2005
EBAN
EVCA
Statistics
Statistics
(30
networks)
157
0

55

36.532.000 15.304.000
664.218

16

97.500

2006
EBAN
EVCA
Statistics Statistics
(4
networks)
46
4

153.700

31.500

2006
EBAN
EVCA
Statistics Statistics
(35
networks)
150
0

26.000.000

170.000

2002-2005
EBAN
(1 network)
47
29
15 million

FINLAND
Number of deals/Investments
Number of deals involving angels
Amount invested
Average size of the deal
Share of public/private investments

GERMANY
Number of
deals/Investments
Amount invested

2006
EBAN
EVCA
(1 network)
17
65
17
10.395.500
9.121.000
611.500
140.323
50/50

50/50

2005
EBAN Statistics (7
networks)
26

EVCA
Statistics
27

2006
EBAN Statistics (8
networks17)
28

EVCA
Statistics
141

8.450.000

6.560.000

6.598.000

31.150.000

325.000

242.962

235.640

220.921

Average size of the deal

2006
EBAN Statistics EVCA Statistics
(1 network)
Number of deals/Investments
5
8
Amount invested
550.000
1.966.000
Average size of the deal
110.000
245.770
IRELAND

ITALY

Number of
deals/Investments
Amount invested
Average size of
the deal

2004
EBAN
EVCA
Statistics
Statistics
(12
networks)

12

1.305.300 4.378.000
108.775

486.444

2005
EBAN
EVCA
Statistics (6
Statistics
networks
+activity
recorded by
IBAN near
independent
angels)
35
8
8.050.000
228.000

2006
EBAN
EVCA
Statistics (12 Statistics
networks)

71

15

5.228.000 11.800.000 3.879.000

653.500

166.000

258.600

2006
EBAN Statistics
(14 networks)
18
>604.000
n/a

Spain
Number of deals/investments
Amount invested
Average size of the deal
Of which Catalonia (8 networks)
Number of deals/investments
Amount invested
Average size of the deal

EVCA Statistics
111
32.258.000
290.612

7
2.285.000
190.500

17

Only 5 networks out of 8 mentioned the average amount invested. The activity of one network
(NetzwerkNordbayern) accounts for 6.048.000 out of the total 6.598.000 reported.
17

SWEDEN

Number of
deals/Investments
Amount invested
Average size of
the deal

2005
EBAN
EVCA
Statistics (12
Statistics
networks)
72
47

2006
EBAN Statistics (14
networks)

EVCA Statistics

72

52

8.515.000

8.185.000

12.000.000

14.154.000

118.263

174.148

167.000

272.192

2006
SWITZERLAND
Number of
deals/Investments
Amount invested
Average size of the deal

THE
NETHERLANDS

Number of
deals/Investments
Amount invested
Average size of the
deal

UNITED
KINGDOM

EBAN Statistics (2 networks)

20

EVCA Statistics
1

13.500.000
675.000

581.000
581.000

2004
EBAN
EVCA
Statistics (2
Statistics
networks)
17

22

2006
EBAN
EVCA
Statistics
Statistics
(2
networks)
23
7

1.700.000
100.000

1.305.000
326.250

3.125.000
142.045

0
0

3.950.000 15.298.000
171.740
2.185.428

2004
EBAN
EVCA
Statistics
Statistics
(14
networks
Scotland
excluded)
165
67

2005
EBAN
EVCA
Statistics (2 Statistics
networks)

2005

2006

EBAN
Statistics
(BBAA +
LINC
Scotland
figures)
226

EVCA
Statistics

309.266

241.538

EBAN
Statistics
(BBAA +
LINC
Scotland
figures)
383

EVCA
Statistics

166.245

9.826.088

Number of
91
158
deals/Investments
Amount invested 35.934.875 12.069.000 69.894.340 21.980.000 63.671.988 1.554.102.000
Average size of
the deal

217.787

180.134

For information:
SCOTLAND
Number of deals
Amount invested
Average size of the deal

2005
38
11.790.690
310.281

2006
56
20.370.220
363.753

18