GREG HANDS UK’s M n ster of State for Trade and Investment
WBAF CHAIR BAYBARS ALTUNTAS
"Events such as the WBAF are a v tal part of th s support network, g v ng a chance for entrepreneurs to meet the r ght nvestors and real se the r amb t ons."
Founder / NEZIH DEMIRKENT F
ECONOMY
POLITICS
13 February 2017 • Monday
THE WBAF, COMMITTED TO EMPOWERING WORLD ECONOMIC DEVELOPMENT / 02
The world’s most mportant angel nvestors gather n Istanbul
BAYBARS ALTUNTAS You are sure to find WBAF 2017 a rewarding experience!
The most comprehensive FinTech platform
2 As a global organ sat on, the World Bus ness Angels Investment Forum 2017 s br ng ng together key players of the global equ ty markets LONDON STOCK EXCHANGE GROUP İS THE HEALİNE SPONSOR
Global key players partner up to support WBAF 2017
(Istanbul) Building on the success of the previous Forum, this year’s event, with the theme of ‘Partnering with Corporate Ventures from Startup to Scale-up to Exit’, will focus on how corporate businesses can foster open innovation and deliver more business value through partnerships with angel investors, start-ups, and SMEs. Corporate venture capital is booming globally. In the first quarter of this year, venture capital funds accounted for nearly 17% of the total venture capital dollars invested,
more than double its share five years ago. In aggregate, corporate venture groups invested $5.4 billion across 775 deals last year. As a global organisation, the World Business Angels Investment Forum 2017 is bringing together key players of the equity market to debate the benefits and challenges for the angel investment community in achieving successful growth for their businesses and to discuss what more can be done to connect the early-stage market ecosystem. The Forum will gat-
her at the Swissotel The Bosphorus– Istanbul 12–14 February 2017 with the theme of ‘Partnering with Corporate Ventures from Start-up to Scale-up to Exit’. LSEG is the main sponsor. The importance of business angels to the equity capital industry has grown significantly in recent years. With the recent formation and growth of angel syndicates, equity from business angels is becoming more and more important to the global equity capital industry.
ARDA ERMUT / GLOBAL PRESIDENT OF WAIPA & CHAIR OF THE PRIME MINISTRY INVESTMENT SUPPORT AND PROMOTION AGENCY
2017 act on plans to leverage cross-border nvestments globally
The World Business Angels Investment Forum is fortunate to have the support of numerous prestigious institutions as partners and sponsors for the 2017 event. In addition to the headline sponsorship of the London Stock Exchange Group, WBAF 2017 co-sponsors are BNP Paribas’s TEB Angel Investment Forum and Istanbul Technical University’s ARI Technopark. Sponsors in other categories include the
LUCA PEYRANO / LONDON STOCK EXCHANGE GROUP, ELITE CEO
KENAN COLPAN / ITU ARI TECHNOPARK, CEO
2 Europe's Innovation and early-stage investment community
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Global organizations such as WAIPA become even more crucial in such an uninspiring condition. WAIPA globally signals the continuous need to catalyze the engines of investments, as it shares best practices of promotion with investment agencies all around the world. FDI thrives in activity and falters in dormancy as WAIPA is involved in plenty of events and as it ensures results-oriented procedures on FDI all-year-round. WAIPA, having decades of experience and a stellar strategy document, has led nations out of their investment slump into more creative ways of being open to investment. We have promoted the idea of regional cooperation and unbounded use of technology to improve investment facilitation quality. We have stepped up our engagement with our key stakeholders: the private sector. Private companies account for most of the FDI around the globe. WAIPA has taken great strides in getting the private sector engaged and on board, particularly during our World Investment Conferences. This event was hailed as the connector between private companies and investment agencies, especially from Europe, Asia and Africa. Moreover, we participate in international events including regional meetings and business forums as a lead FDI promotion body and a global reference point for FDI.
following distinguished companies: Calik Holding as the Silver Sponsor; Intel and Samsung as Tech Sponsors; FinTech Istanbul, powered by the Interbank Card Center (BKM) of Turkey, as the Content Sponsor; Fineksus and Nexchange as the Investment Forum Sponsor; AA as the global communication partner Bloomberg HT as the Media Sponsor; and Para Weekly and Dunya Daily as Press Sponsors.
The Angel Investment Scene in South East Asia
Insights from the Middle East
3 Growing interest from the African diaspora
3 World Excellence Awards
3
GOKHAN MENDI / TURK ECONOMY BANK (TEB) EVP / HEAD OF RETAIL & PRIVATE BANKING TURKEY
London Stock Exchange Group proposes a un que programme
The scale-up center for technology start-ups opens
TEB Angel Investment Platform supports start-ups and scale-ups
LSEG proposes a unique programme, ELITE, an integrated service designed to help SMEs prepare and structure for the next stage of growth through access to long term financing opportunities. PAGE / 4
Recently, a new kind of incubation center has opened at ITU ARI Teknokent, which is the technology development zone of Istanbul Technical University (ITU). PAGE / 2
As one of only three bank-backed investment platforms in the world (and the only one in Turkey), Mendi shares bank’s learnings from their experience with WBAF delegates. PAGE / 3
MOU signed with World Start-up Expo / 2 Samsung’s Strategies to support start-ups and scale-ups / 3 World Excellence Awards / 3 WBAF Academy Courses for entrepreneurs, startups and angel investors / 4
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ITU Magnet: The gateway center for scale-ups
Baybars Altuntas Chair, World Business Angels Investment Forum (WBAF)nt
You are sure to f nd WBAF 2017 a reward ng exper ence!
I
n the past, inventions were important for the economic development of societies. In the 21st century, however, it is not invention but innovation that counts. In those earlier times, entrepreneurial skills were not needed to get an invention to the market because it was a seller’s economy, where customers were ready to buy anything new. Times have changed, and the rules of the game have changed. Today’s inventors need more than just a clever idea. They need a complex set of skills to move their innovative idea into the market and to ensure it succeeds. Ours is the age of the entrepreneur (the buzz word of our century). The current, highly competitive economic environment means that scaling up businesses demands special skills of entrepreneurs, who are obliged to secure financing as quickly as possible. Yet finance alone is not sufficient to create global success stories. The entrepreneur needs not simply finance, but the best finance.
What s ‘the best f nance’? The best finance is a miracle that happens when one is able to combine money, know-how, mentorship and networking. This is perhaps better termed smart finance. Consider the various sources of finance available to entrepreneurs: Beyond basic bootstrapping, there are corporate ventures, angel investors, crowdfunding platforms, accelerators, VCs, banks, public grants, co-investment funds, business plan competitions, technology transfer offices, family offices, private equity investors and stock exchanges. With the notable exception of angel investors, all these sources provide only money, nothing more. The only true sources of smart finance are angel investors, who are able to influence a country’s economic development by providing more than just money to entrepreneurs and SMEs. They contribute their own know-how, provide mentorship, and share their own networks in contributing to the businesses they invest in. They are thus the main drivers of innovation and the natural leaders of the world’s early-stage investment markets. In 2015, more than 300,000 angel investors invested more than $25 billion in startups in the US, and more than 310,000 angel investors invested more than 6 billion Euro in Europe. The estimated total global market size of angel investment is over $50 billion every year. Angel investors support entrepreneurs in starting up, and they support SMEs as they scale up their businesses, creating hundreds of thousands of new jobs worldwide every year. It is rewarding to see that governments around the world have understood the importance of angel investment for boosting their economies. During the Presidential Summit on Entrepreneurship in
2010, President Obama’s response to concerns I expressed about making available public grants for entrepreneurs was promising. In a special meeting with me, he agreed with and supported my position on the importance of angel investors in terms of converting public money to ‘smart money’, that is, cash that is invested by parties who are experienced, well-informed, and well connected. Many governments, particularly in Europe, offer generous tax incentives for angel investors. The UK and Turkey have already passed angel investment legislation to support such a system. A number of Middle East countries, particularly in the GCC, have discovered the angel investment system and are keen to pursue it because, among other key reasons, it is 100% compatible with Islamic investment principles. In fact, the Islamic Development Bank included angel investment on the list of recommendations proposed for consideration at its annual conference in Jakarta, in May 2016. The World Business Angels Investment Forum invites all governments and policymakers to take advantage of the know-how, mentorship, and networking of qualified angel investors and to convert public money to smart money by establishing close collaboration between public institutions and private resources such as business angel networks, corporate ventures and VCs. As a global organisation, the World Business Angels Investment Forum is bringing together key players of the equity markets to discuss the benefits and challenges of achieving successful growth for businesses and to explore additional possibilities for empowering the world economy. In the wake of the global economic crisis, it was far from easy to reach out for any kind of finance, smart or otherwise. The World Business Angels Investment Forum focuses on developing innovative financial instruments for entrepreneurs and SMEs as a part of its global agenda. To focus on the ‘smart’ factor in innovation in the context of entrepreneurial ecosystems, the World Business Angels Investment Forum directs its attention to developing smart investors, smart finance, smart exits, and smart entrepreneurs, startups and SMEs. By working together across borders, with a common vision, and with these smart dynamics in mind, we are well placed to bring about positive change in the global economy. As the Chair of the World Business Angels Investment Forum, I invite you to join our global efforts to ease access to smart finance to create more jobs and more social justice worldwide. Your efforts to convert the world economy to a smart economy in cooperation with the World Business Angels Investment Forum will be highly valued.
angel news Meeting with the Investment Minister of Kazakhstan The World Bus ness Angels Investment Forum Cha r met w th the Investment M n ster of Kazakhstan on 21 Apr l 2016 n Astana. At the conclus on of the meet ng, the M n ster and the WBAF Cha r agreed to s gn a protocol that would foster the development of the early-stage nvestment market n Kazakhstan.
Collaboration with the Zambia Government The World Bus ness Angels Investment Forum Cha r was nv ted by the Zamb a government to connect the Zamb a early-stage nvestment market w th global markets. The Deputy M n ster of Commerce, Trade, and Industry of Zamb a and the WBAF Cha r agreed on further collaborat on to ease access to f nance for SMEs n Zamb a.
MOU with World Startup Expo The World Bus ness Angels Investment Forum has s gned an agreement w th World Startup Expo. Forecasted to be As a’s largest expos t on for the startup ecosystem, World Startup Expo connects the most nnovat ve and d srupt ve startups w th execut ves from the world’s top corporat ons, government agenc es, nvestors, VC funds, banks, and technology compan es.
sultants, independent coders, designers and engineers are also invited to apply for membership at ITU MAGNET, as they are very important in creating a diverse community for start-ups. To become a member, start-ups and entrepreneurs should a) have a satisfactory level of competitive advantage and growth potential with their intellectual property or their trade secrets targeting an attractive market b) have already launched their products in their respective markets, have started invoicing their customers or are very close to commercialization c) have the necessary initial investment or capital to grow and to look for new funding for faster growth.
Recently, a new k nd of ncubat on center has opened at ITU ARI Teknokent, wh ch s the technology development zone of Istanbul Techn cal Un vers ty (ITU). The center s called “ITU MAGNET” as t a ms to br ng together all the startup ecosystems of Turkey and the EMEA reg on. How would you def ne ITU MAGNET? ITU MAGNET will be the center for high-potential and highgrowth technology start-ups that have finished the initial product development and have started their commercial life. ITU MAGNET aims to grow a community of growth-focused, high-potential technology start-ups in order to fulfill a very important function in the start-up ecosystem. ITU MAGNET’s primary objective is to help technology start-ups scale-up in order to get ready for international competition. High potential start-ups that have finished the early stages and have launched their products are welcome at the co-working space of ITU MAGNET after an initial screening. Besides, ITU MAGNET is established as an approximately 2.000 m2 office space with a capacity of 280 people working at the same time. What was the mot vat on beh nd establ sh ng that k nd of growth stage startup commun ty? I believe that the start-up ecosystem really needed an advanced incu-
bation center that is dedicated to advance start-ups at a later stage. ITU MAGNET is an important initiative that will be used to fill this gap. It will be the place to go for anyone who wants to work with or invest in technology start-ups, as well as attract potential employees and mentors. ITU MAGNET has been designed to take the best incubation centers in the USA as models and will assume the
roles of “incubator of incubators”, host for private incubation and accelerator of programs to support different start-ups.
Who can jo n ITU MAGNET? Start-Ups, Entrepreneurs and Participants can be accepted as members of ITU MAGNET. Start-up ecosystem participants as well as investors, private acceleration programs, con-
What serv ces are ncluded n the membersh p? Member start-ups can use the advanced facilities, the office space of ITU MAGNET and become a part of a select community of high-potential start-ups. As ITU MAGNET grows, members of ITU MAGNET will also be able to directly access all key players of the start-up ecosystem, including investors, accelerators and media, 7/24 at the convenience of their office space. With its comfortable office space, a full-functional prototyping lab for product development (coming soon), meeting rooms, a conference center, a pitching stage and a video-wall, ITU MAGNET provides a complete infrastructure for start-ups. By organizing regular meetings with investors, mentors and potential corporate customers, ITU MAGNET provides an unparalleled advantage for start-ups to grow.
BKM ( INTERBANKS CARD CENTER) GENERAL MANAGER DR. SONER CANKO
The most comprehensive FinTech platform in South East Europe and the Middle East (Istanbul) FinTech Istanbul is recognised as the most comprehensive FinTech platform in South East Europe and the Middle East. The Interbank Card Center (BKM) is the biggest supporter of this platform. What factors contributed to the BKM becoming one of the biggest players of the FinTech industry—not just in Turkey, but throughout the region? BKM aims to support the ecosystem around it for accelerating innovation, paving way for new en-
terprises and sustaining the competitive superiority of finance industry in line with digital transformation. Within this context, as Fintech Istanbul established in February 2016, we have aimed and conducted activities to ensure that Turkey’s Finctech ecosystem is established upon a solid foundation, to allow players in the ecosystem to familiarize with each other, to create Fintech awareness and to promote Turkey Fintech ecosystem abroad.
INDERJİT SİNGH ,CO-PRESİDENT OF WORLD ENTREPRENEURSHİP FORUM (WENF), SİNGAPORE
CANDACE JOHNSON, PRESIDENT OF EBAN, BELGIUM
The Angel Investment Scene n South East As a
Europe s po sed to leap ahead n early stage nvestment
(Singapore) The start-up scene in South East Asia (SEA) has been developing for the last 15 years, starting with Singapore where through government support, a serious effort was put in place to transform the entrepreneurship landscape. Most of SEA, did not really see any serious effort to organize the angel investors’ community until the last 5 years.
(Brussels) Europe has had a long gestation and incubation period for entering the global arena of entrepreneurship and early-stage investments but 2017 promises to be the break-through year with several advances already made in 2016. It is hard to believe, but actually Europe was ahead of the world with recognizing the need for incubators and business angels — creating EBN (the European Business Incubation Network) in the early 1990’s and EBAN, the European Trade Association of Business Angels, Seed Funds, and Early-stage market players in 1998, almost 10 years before the Kaufmann Foundation gave the money to create the Angel Capital Association (ACA) of the United States. Anxious to replicate the Silicon Valley success which was totally organic and private, stemming from such private universities as Stanford, start-ups like Hewlett Packard
The S ngapore Exper ence In Singapore, the government helped catalyse the entrepreneurship spirit with the formation of the Action Community of Entrepreneurship (ACE). ACE, formed in 2003 focused on a number of initiatives to create a vibrant start-up ecosystem in Singapore. Among the initiatives ACE helped put in place in Singapore that has transformed the entrepreneurship landscape in Singapore, include, changing rules
and regulations, tweaking the education system to create a culture of enterprise and innovation and putting in place many new financing options that where grossly lacking in Singapore.
which grew to be amongst the world’s largest corporations, European governments singly and collectively embarked on creating incubators to encourage the growth of entrepreneurs.
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3 TA N S U Y E G E N / V I C E P R E S I D E N T, S A M S U N G T U R K E Y
Samsung’s act on plans to foster global entrepreneursh p (Istanbul) We as Samsung Electronics, partner with innovators to build ideas into products, grow products into businesses and scale businesses that leverage and transform the Samsung ecosystem. Some of our activities managed by
1 3 F E B R U A R Y, S W I S S O T E L T H E B O S P H O R U S , I S T A N B U L
World Excellence Awards and VIP Gala Dinner
Samsung Next, which started in 2013 on a mission to create breakout software and services and foster a startup culture at Samsung. What began as a small group has since become a global organization working to realize this vision in
close partnership with innovators everywhere. Each of our partners shares our passion for building deeper connections and seamless experiences to inspire the world and create the future. We provide entrepreneurs with funding, resour-
TEB Pr vate Bank ng, support ng the local ecosystem Banks n the future w ll not only be tempted to re structure the r asset l ab l ty pos t on ng n favor of fund ng SME’s, they w ll also start restructur ng the smart money they manage on behalf of the r cl ents by tra n ng, adv s ng and del ver ng the r know how.
(Istanbul) With its Excellence Awards, the World Business Angels Investment Forum looks beyond borders. It seeks to promote and nurture startups, angels, and a dynamic business community throughout the world. From business angels to policymakers to academics, the Awards salute those who stand out in imagining, discussing, and shaping the future of an entrepreneurial world. Given the diverse challenges the world is facing in the twenty-first century, it is important to recognise that entrepreneurship can have a major impact on our future, offering new ways to increase economic opportunities and to foster social justice. The World Business Angels Investment Forum aims to contribute to that impact by driving positive changes that will facilitate entrepreneurship. Fostering entrepreneurship whose effects can be felt in both economic and social arenas is a hallmark of the World Business An-
gels Investment Forum. On the evening of 13 February in Istanbul, the World Business Angels Investment Forum will host a VIP reception and Gala Dinner for the presentation of the World Excellence Awards.
World’s Top Awards & VIP Gala D nner Winners are announced in VIP Gala Awards Dinner event which brings together over 200 leading players from across the early stage investment industry to join in celebrating the Awards winners highlighting the year’s most innovative angel- backed businesses and investors from across the world.The VIP Gala Dinner brings together over 200 thought-leaders in angel and early stage investment each year for an exclusive black-tie celebration. With excellent opportunities for corporate hospitality, we invite you to join in and celebrate the year’s most prominent successes in the risk capital market.
AHMET VEFIK DINCER, CHAIR, FINEKSUS
There are only 7 SWIFT Business Partners in the world (Istanbul) Dincer says ‘’Our goal to be a global company was a big motivation as well. In addition to SWIFT, participating in fairs such as SIBOS is quite important to extend your vision. 3 years ago we opened our Dubai office to manage our Middle East operations. In the mean time we renewed our SWIFT Business Partner agree-
ment in the way it includes Middle East region. I would like to add that there are only 7 SWIFT Business Partners in the world and we are one of them. Our partnership with SWIFT made it easier for us to expand our company and portfolio. Today we have many clients from Hong Kong to London.’’
ces and deep domain expertise to build ideas into products and launch startups ready for scale, through early stage funding and operational support. As well as we fuel the momentum of startups to help them grow into thriving businesses.
As one of only three bank-backed nvestment platforms n the world (and the only one n Turkey), what lessons have you learned from your exper ence w th the TEB Angel Investment Platform that you can share w th the World Bus ness Angels Investment Forum delegates and world-class angel nvestors? One of the greatest and most exciting goals we have identified for ourselves for the last couple of years is to act as a unique reference point for both angel investors and for entrepreneurs. This goal required two main business lines to flourish; Angel Investment Advisory Services within our Private Banking Department and Startup banking under our SME Business Department. Before acting as a bridge between the entrepreneur and the angel investor we built a very strong bridge between those business lines. This synergy model is unique in Turkey, unique in banking industry in terms of creating a powerful synergy between commercial and private banking business lines. So allow me to say that first lesson would be to ensure the commitment of the policy makers within a corporation in order to capture the opportunities that are brought through being exposed to such a dynamic and rapidly evolving eco system. We see this as a continuous learning curve where both our stake holders as well as our clients would benefit in the long term since investment opportunities would be non- traditional and institutions which lack the ne-
Gokhan Mend Turk Economy Bank (TEB) EVP / Head of RetaIl & PrIvate BankIng Turkey
TEB, like many other Banks have access to a very valuable information and insight; its client’s current and forecasted behavior analysis.
cessary information and intelligence to follow–up the global trends might be left outside this game. TEB Private Angel Investment Platform is a perfect example of a commercial Bank like ours to start looking at the innovation and digitalization pace embracing its global players as well as supporting the local eco system through leveraging our financial and networking power. TEB, like many other Banks have access to a very valuable information and insight; its client’s current and forecasted behavior analysis. Our unique approach car-
ried us to an understanding of acknowledging how it is important for well established corporates like us to learn agile methodologies and easiest way is to learn this through working with start-ups.
What new roles w ll banks play n early-stage nvestment markets n the post-global econom c cr s s? According to the Word Bank and State Department of US one can talk about a potential 6 Billion$ innovation financing in the developing world. Diversification benefits and higher expectations of investment returns are increasingly
driving investors to alternative investments, and recently I came to read a special article in NY Times about how the wealthy portion of the world is willing commit about $500 million to Uber’s latest round valuing the San Francisco-based company at $62.5 billion. People with deep pockets are investing in hedge funds, private equity vehicles and, of course, in young private companies like Facebook, before it went public. For this reason, we began offering that concept to our clients as an alternative investment vehicle in May 2013. At a time when traditional investment products are slowly losing their attractiveness, we regard alternative investment vehicles and new ideas such as becoming an angel investor as opportunities that shouldn’t be missed. Banks in the future will not only be tempted to re structure their asset liability positioning in favor of funding SME’s, they will also start re- structuring the smart money they manage on behalf of their clients by training, advising and delivering their know how in the entrepreneurship eco system. That I believe will have effects more than only increasing the credit portion to SME’s and start- up companies because the latter would have a chain effect in waking up the investable wealth of the whole World. The risks associated with such re-modeling naturally do exist but I believe eventually every key participant of the international financial system will accept the new Paradigm of technological innovation together with the importance of supporting early stage markets and find ways to integrate their client’s future prospects into this new World. Our organizational model is unique built over two main pillars of the eco system; entepreneurship support through our Start Up Banking Division and Angel Investment Advisory services through our Private Banking Department.
ABDUL MALEK JABAAR, PRESIDENT
H . TO M I DAV I E S , P R E S I D E N T
MIDDLE EAST BUSINESS ANGELS NETWORK
AFRICA BUSINESS ANGELS NETWORK (ABAN)
Ins ghts from the M ddle East nvestment ecosystem and nnovat on market
Grow ng nterest from the Afr can d aspora to startups and scaleups
(Dubai) President of the Middle East Business Angels Network says’’ Recently we have seen an impressive ecosystem in Dubai being evolved. The Future Accelerator in Dubai stands as one of the most promising initiative. From its name, this accelerator opens its door to any entrepreneur who wants to put his innovation into action to shape the future of Dubai. Smart Dubai Office is looking for innovative smart solutions to make the life of dubai residence happier, smoother and to guarantee the best experience in the world.
(Lagos) President of ABAN says’’ The African entrepreneurial base and early stage ecosystem has dramatically grown over the last few years, and the quality of the ventures being created have also improved. These key factors have resulted in three key trends that are considerably influencing the African early stage investment landscape. The first of these trends is a growing interest from African diaspora to invest in startups in their country of origin. African Diaspora entrepreneurs who run businesses in their destination countries are increasingly setting up businesses in their countries of origin as well. In addition, a significant number of people who are not entrepreneurs in their destination countries are using their experience and skills to start up new commercial ventures in their countries of origin. In each
Few years ago when I started with Mena Apps, the road looked very long and at certain moments I felt it will take a long time before we see real initiatives. We started small initiatives in Jordan and Palestine. I participated in start up conditions and boot
camps in few places. I was not saying. I to any invitation I receive to talk about innovation and start ups as well as the importance of building the ecosystem to enable the arab world to face the challenges that are we are living of ahead of us.
case, there are multiple motivating factors.’’ Setting up business in their countries of origin enables Africans in diaspora to profitably transfer the knowledge, skills, experiences and opportunities gained in their destination countries.
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04 (Istanbul) Ahmet Calik, The founder and Chairman of Calik Holding, says ‘’As one of the fastest growing financing models of the world, crowdfunding globally provided more than USD 40 billion in financing in 2016. In a very pleasant development for our country in this issue, a “Draft Bill on the Amendment of the Capital Markets Law” was sent to the Grand National Assembly of Turkey by the Cabinet on 21 November 2016. According to the draft bill; crowdfunding will only be possible through the platforms allowed by the Capital Markets Board and investors will be provided with transparency and a safe environment. I immensely value this positive development, and as an entrepreneur, I believe that it will contribute greatly in the process to bring to life innovative ideas with great added value and the ability to meet investors in our country.’’
Ahmet Calik: ‘’I believe the new crowdfunding law of Turkey will contribute greatly to the process of bringing life to innovative ideas’’ 1 4 F E B R U A R Y 2 0 1 7, I T U A R I T E K N O K E N T, I S T A N B U L
LUCA PEYRANO CEO, LONDON STOCK EXCHANGE GROUP ELITE
WBAF Academy Courses
It is the position of the WBAF Academy that when investors have had the advantage of training in the best practices of negotiating deals for early-stage investment, they are in a better position to ensure good returns on their investment. On the second day of the Forum, 14 February, delegates will have an opportunity to attend one of four WBAF Academy courses, all taught by WBAF Academy Faculty Members. The first course (How to become a business angel) is for potential angel investors, and will be offered by WBAF Academy Faculty Member Harry Tomi Davies, from the UK, Chairman of the African Trade Association for Business Angels (ABAN). The second course (How to set-up a business angel network – BAN) is for business angel
network managers, and will be delivered by WBAF Academy Faculty Member Peter E.Braun, an EBAN Board member from Switzerland. The third course (How to raise fund from angel investors) is for entrepreneurs, start-ups, scale-ups and SMEs aiming to raise funds from angel investors. This course will be run by WBAF Academy Faculty Member Modwenna Rees-Mogg, Founding CEO of Pitching4Management and Chair of AngelNews, UK. She is also the author of Dragons or Angels, an internationally known book about the TV show Dragons’ Den. The fourth course (How to mentor entrepreneurs efficiently), for mentors and start-ups, will be led by WBAF Academy Faculty Members from Greece, Adriane Thrash and Argyrios Spyridis, Co-founders of Innovation Farm.
’Today, stock exchanges are more keen to open the r doors to SMEs’’ (London) London Stock Exchange Group proposes a un que programme, ELITE, an ntegrated serv ce des gned to help SMEs prepare and structure for the next stage of growth through access to long term f nanc ng opportun t es.It targets SMEs w th a sound bus ness model, clear growth strategy and a des re to obta n fund ng n the near future. It now accounts for more than 200 compan es of d fferent s zes and sectors, more than 150 partners and more than 70 long term. Enjoy the exclus ve nterv ew w th Luca Peyrano. What s ELITE?
The world’s f rst sc ent f c research on Start-up Compass
(Thessaloniki) The world’s first scientific research on Startup Compass Theory (STC): on start-up success will be released at the World Business Angels Investment Forum.The World Business Angels Investment Forum will host the launch and presentation of research on the Start-up Compass Theory (SCT). The novel aspect of this research is that it is the first empirical study attempting to validate an existing method of increasing the success chances of a start-up; the research involved scrutinizing the processes of successful practitioners in the field. A research team led by Prof Panayiotis H. Ketikidis of the International Faculty of the University of Sheffield first explains the Start-up Compass Theory (SCT), which involves several stages: (1) before starting the business, also referred to as wannapreneurship, (2) starting up the business, which involves innovation, entrepreneurship, marketing and sales, (3) growing the business, including branding, institutionalization
Prof Panay ot s H. Ket k d s and franchising and (4) maturing the business, involving leadership and angel investment. Unlike existing theoretical frameworks developed by academics, the SCT was developed by an experienced entrepreneur and businessman. The theory has thus already been tested in the real world for its effectiveness in guiding a start-up to success. Participants in the research indicate that the majority of factors described in the SCT are ones they themselves embrace for their value in enhancing or even determining a young company’s success. The SCT is promising from both a scientific and a more applied perspective.
ELITE is a two year programme for high-growth, ambitious companies designed to provide their CEOs and senior management with access and support from blue chip advisors and investors, as well as a bespoke management course delivered by various business schools across Europe. We launched ELITE because we know that entrepreneurs often find that that their passion and ideas are enough to launch them a business, but accessing on-going growth finance from institutional investors, private equity funds or venture capital is much harder. ELITE facilitates company access to a full range of funding options, increases company profile and visibility, promotes relationships and opportunities with potential investors, and supports management best practice and entrepreneurship.
How many compan es have jo ned the programme? We have welcomed more than 400 companies to the ELITE programme as well as over 150 financial advisers and professional bodies. In addition, the programme now also boasts more than 100 institutional investors including private equity firms as we all as specialist debt investors. The 400 companies come from 23 European countries, the programme having been rolled out across Europe in 2015. The companies have a combined revenue of more than EUR 33bn, come from 33 sectors and employ more than 140,000 employees. This is now a very serious and impressive pan-European programme. Why d d LSEG launch th s programme across Europe? High growth SMEs are the major source of new, high quality jobs. For the EU economy to grow we need to ensure these types of companies are nurtured and supported as
fully as possible. We want to create a community for Europe’s most ambitious high growth businesses. We have brought together over advisors and investors, including leading accountancy and legal firms; business angels, VCs and private equity houses; institutional investors; PR firms; banks; brokers, as well as the major trade and investment bodies.
How do you select the part c pants? Do they have to pay to be part of ELITE? We look for high quality, highly ambitious businesses. This can include an established successful family run business as well as a high growth, high tech next generation company. All applicants are selected following detailed discussions with the ELITE team. There is a financial commitment from the companies participating to cover the cost of running the programme - €10,000 per year. How have compan es performed s nce jo n ng ELITE? The results have been truly impressive: • 45 Companies have completed a deal with a Private Equity firm • 15 Companies publicly announced an intention to IPO • 21 Companies have issued bonds, raising EUR 410m • 120 M&A / JV deals completed by ELITE comapnies Can ELITE also be a useful tool for nvestors and adv sers? Certainly, it allows the investor and adviser community the opportunity to engage with a pool of high quality, dynamic companies and entrepreneurs. Advisers can sponsor the admission of their best clients / contacts to ELITE, in order to accelerate their understanding of the capital markets. Investors can sponsor the admission of their portfolio companies to ELITE, raising their corporate profile within the local and inter-
national financial community, laying foundations for structuring, well in advance of an exit strategy.
As well as attract ng new compan es, how w ll you cont nue to develop the platform? It’s a good question and one we take seriously. In July, we launched ELITE Club Deal (ECD) which is an online private placement platform designed to streamline the capital raising process for ELITE companies. ECD will offer over 400 ELITE companies the opportunity to actively seek and raise capital professional investors (institutional investors, VCs, private equity firms etc.) offering them a host of funding options (equity & debt) in an online integrated environment. We are in pilot phase testing with five European ELITE companies now, with a full go-live planned for late 2016. How does t work? A company seeking capital, supported by an ELITE Partner, opens an “Opportunity” on the Platform and creates initial deal Terms & Conditions (based on a standard format set by ECD). The company then agrees T&Cs with a Cornerstone Inves-
tor(s) – Cornerstone Investors must commit to minimum percentage of the deal. Follow-on Investor(s) submit their orders on the same terms and conditions agreed by the Issuer and the Cornerstone Investor(s). All documentation is uploaded and stored in the ECD Data Room. The Platform manages the order collection and book building process. Issuers will be charged a one-off fee, calculated as a percentage of the value of the deal brokered on the platform. ECD will redistribute the fee among the participants involved in the deal (e.g. Agents selling fee, ELITE Partner advisory fee & Settlement bank fee).
How can compan es f nd out more? The website, www.elite-growth. com/ is the best place to start. We have information there about the programme: what CEOs can expect once they join ELITE as well as information for partner institutions, outlining the types of companies they can get access to via ELITE. WE have a great team who will always be happy to answer any questions, so do get in touch: elite@lseg.com
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