12
de Maig
de
2016
Act.
12
de Maig
de
2016
If you are an entrepreneur and run into a business angel, it will most likely be a man between the ages of 35 and 55. Someone who basically invests in the start-up and digital and internet sectors, with around five years experience in investing and who is willing to put money into projects all over Spain. However, when he does invest, he usually does not do so alone. This is, in general terms, the overview of a business angel in Spain according to the first annual report on the profile of investors produced by the Spanish Association of Business Angel Networks (Aeban, in Spanish) and the Iese business school. The study shows that most Spanish business angels come from the IT sector (32.4%) and the financial sector (16.2%); with their previous posts being CEOs, board members, director generals or managers.
José Herrera, the Aeban president, insisted during the presentation of the report on Wednesday that "the business angel is a key figure for the survival of the entrepreneurial ecosystem. It is they who back start-ups in their initial stages, before venture capital comes into play, risking their own pockets."
The director of the business angel network at Iese, Amparo San José, pointed out that the profile of these investors "is younger and more international than in previous periods, with a clear preference for joint investment." The conclusions are taken from 200 one-to-one interviews carried out for the study.
How old are they?
Some 44% of business angels are under 44. However, 81% of these investors are between the ages of 35 and 54. Yet, some 60% began investing in the past five years and only 17% have spent more than 10 years injecting capital into start-ups.
How much money do they invest?
Even though business angels cover a wide range of investment, according to this study, most of the contributions are in two ranges: from 25,000 to 50,000 euros, and from 100,000 to 200,000 euros.
However, very few of these investments are made individually, as those types of contributions do not even come to 2% of the total. The vast majority (88.8%) invest alongside other business angels. It is a situation that no doubt benefits from the growing number of networks and investment clubs.
Also notable is the presence alongside business angels of public programmes, such as those of the ICF or Enisa (62.7% of cases); while more than half of these investors (56.3%) have been involved in joint investments of venture capital. Therefore, the sharing economy appears to have reached investment.
Where they invest?
While business angels are normally associated with local investment in their own territories, the truth is that the Aeban study suggests that they are increasingly roaming further afield. More than half (55.5%) have investments all around Spain and only 16.6% stay within their own sphere. Also notable is the percentage of investors with international projects in their portfolios (29.3%), quite a bit more than the British, for example, the figure for which stands at 22%.
What do they invest in?
Some 75% of the investment ends up in internet and digital start-ups. Media, digital content, trade and distribution or e-commerce are the most popular sectors. However, this does not mean that they do not invest in offline companies. Most business angels insist that a quarter of their portfolios is devoted to these types of companies; and 10% say they have an investment portfolio that only includes offline companies. On the other hand, some 47% only invest in online start-ups.
Where are the women?
To talk about business angels is, even today, to talk about men. In Spain, only 8% are women, a percentage that is well below that of the 14% in the United Kingdom and the 20% in the United States.
What do they contribute apart from money?
The role of the business angel in a start-up, apart from contributing funds, is a recurring discussion. There are those who use their business experience to advise entrepreneurs, while others limit themselves to injecting capital. According to the results of this study, most choose the first option, as only 7.5% have an entirely passive role.
In more than 80% of cases they offer strategic advice as well as money; and on two thirds of occasions the entrepreneurs also benefit from the business angel's network of contacts. However, the situation in which an investor also has an executive position in the company is less than 16%.
José Herrera, the Aeban president, insisted during the presentation of the report on Wednesday that "the business angel is a key figure for the survival of the entrepreneurial ecosystem. It is they who back start-ups in their initial stages, before venture capital comes into play, risking their own pockets."
The director of the business angel network at Iese, Amparo San José, pointed out that the profile of these investors "is younger and more international than in previous periods, with a clear preference for joint investment." The conclusions are taken from 200 one-to-one interviews carried out for the study.
How old are they?
Some 44% of business angels are under 44. However, 81% of these investors are between the ages of 35 and 54. Yet, some 60% began investing in the past five years and only 17% have spent more than 10 years injecting capital into start-ups.
How much money do they invest?
Even though business angels cover a wide range of investment, according to this study, most of the contributions are in two ranges: from 25,000 to 50,000 euros, and from 100,000 to 200,000 euros.
However, very few of these investments are made individually, as those types of contributions do not even come to 2% of the total. The vast majority (88.8%) invest alongside other business angels. It is a situation that no doubt benefits from the growing number of networks and investment clubs.
Also notable is the presence alongside business angels of public programmes, such as those of the ICF or Enisa (62.7% of cases); while more than half of these investors (56.3%) have been involved in joint investments of venture capital. Therefore, the sharing economy appears to have reached investment.
Where they invest?
While business angels are normally associated with local investment in their own territories, the truth is that the Aeban study suggests that they are increasingly roaming further afield. More than half (55.5%) have investments all around Spain and only 16.6% stay within their own sphere. Also notable is the percentage of investors with international projects in their portfolios (29.3%), quite a bit more than the British, for example, the figure for which stands at 22%.
What do they invest in?
Some 75% of the investment ends up in internet and digital start-ups. Media, digital content, trade and distribution or e-commerce are the most popular sectors. However, this does not mean that they do not invest in offline companies. Most business angels insist that a quarter of their portfolios is devoted to these types of companies; and 10% say they have an investment portfolio that only includes offline companies. On the other hand, some 47% only invest in online start-ups.
Where are the women?
To talk about business angels is, even today, to talk about men. In Spain, only 8% are women, a percentage that is well below that of the 14% in the United Kingdom and the 20% in the United States.
What do they contribute apart from money?
The role of the business angel in a start-up, apart from contributing funds, is a recurring discussion. There are those who use their business experience to advise entrepreneurs, while others limit themselves to injecting capital. According to the results of this study, most choose the first option, as only 7.5% have an entirely passive role.
In more than 80% of cases they offer strategic advice as well as money; and on two thirds of occasions the entrepreneurs also benefit from the business angel's network of contacts. However, the situation in which an investor also has an executive position in the company is less than 16%.