EUROPEAN BUSINESS ANGEL NETWORK EUROPEAN ... - Idepa
EUROPEAN BUSINESS ANGEL NETWORK EUROPEAN ... - Idepa
EUROPEAN BUSINESS ANGEL NETWORK EUROPEAN ... - Idepa
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1. Background<br />
<strong>EUROPEAN</strong> <strong>BUSINESS</strong> <strong>ANGEL</strong> <strong>NETWORK</strong> - Directory of Network 2005<br />
CZECH REPUBLIC<br />
2005<br />
Since the fall of communism in the then Czechoslovakia and now The Czech Republic, there<br />
have been several attempts to create an informal marketplace to match private investors and<br />
investee companies.<br />
Although over the past 14 years several transactions which could be classified as Business<br />
Angel deals have been done, there has not been a structured approach which would marry up<br />
the best practices from advanced European and US markets.<br />
The primary problem is the lack of awareness of both the investment process and the<br />
implications for both sides of the equation and without this awareness the deals which will be<br />
taking place are likely to be rather random and haphazard.<br />
BANET is the brainchild of Michael Prokop, an experienced London based Business Angel<br />
who decided to set up a formal Business Angel network in Prague in conjunction with a local<br />
company BID services s.r.o.<br />
The aim is to not only provide a matching service for investors and investees but also to add<br />
value by providing educational backup as a pre requisite to successful matching.<br />
The intention is to carry on with the successful UK experience of Ready4Growth and<br />
Ready2Invest seminars which will provide the necessary awareness to both sides of being<br />
Investment Ready and providing Intelligent Capital.<br />
Therefore, throughout the summer of 2004, over 6000 SMEs are being contacted in a<br />
concerted Direct Mail drive with the intention of selecting the most promising initial deals to be<br />
trained up in September 2004 in Investment Readiness, i.e. the ability to put together a<br />
sensible Business Plan and the skills to make a visual presentation to a group of investees.<br />
The first BANET meeting is planned for November 2004.<br />
2. Statistics<br />
There are no reliable statistics available at the moment as the business angel market is rather<br />
latent and unregulated. However from anecdotal evidence, the number of deals which could<br />
be classified as Business Angel finance (i.e. equity purchase of up to 500 k Euro from<br />
investors who are not related to the investees) is less than 30.<br />
3. BAN Legal Status<br />
At the moment, BANET is a subsidiary of Bid Services s.r.o. and following the first Business<br />
Angel meeting in November 2004 will become a s.r.o. (Limited company)<br />
4. National Association<br />
BANET<br />
5. Lobbying<br />
Lobbying has been carried out by making presentations at various SME conferences in<br />
Prague and Brno, several presentations to the main Venture Capital players and the Ministry<br />
of Trade and Industry, Czechinvest, major commercial banks and Cesko Moravska Zarucni a<br />
Rozvojova Banka (CMZRB). The lobbying has included the attempt to obtain tax breaks for<br />
investors and to provide support for both investors and investees from the Structural Funds<br />
and from the CMZRB in the form of soft loans to match the Angel investment.<br />
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