European Business Angels Network held their annual congress in Dublin, Ireland and yesterday they presented the “Startup Investors Manifesto“, a policies recommendations document with the aim of growing early stage investment market of Europe from €7bn today to €15bn by 2017.
The manifesto is subscribed by startup investors from all EU28 & accession countries and according to EBAN board memebers is a result of a joint effort of EBAN with the EU Commission.
According to the official document, Startup Investors Manifesto complements the Startup Manifesto that was drawn by 9 of Europe’s most successful tech entrepreneurs in 2013 and brings light into some of the issues that prevent investors to invest even more in these early stages.
EBAN estimates that if the actions and policies featured in their manifesto get adopted by EU Member-States, it is possible to achieve the goal of 15 billion euros of investment translated by the following figures:
| 2013 | 2017 | 4-years growth | |
| business angels | 5,5 | 11,7 | 113% |
| early stage VC funds | 2 | 2,9 | 45% |
| equity crowdfunding | 0,08* | 0,5 | 525% |
Figures in billion euros, Source of 2013 data: EBAN, EVCA (*Estimation based in multiple sources)
In a nutshell the Startup Investors Manifesto recommends the following policies and actions:
| KEY ACTIONS | ACTORS | |
| Inspiring a co-investment culture amongst different market stakeholders | – Set up co-investment funds with public and private funds – Focus on cross-border co-investment to attract funds to emerging markets – Change mindsets and convert grants into financial instruments |
national and European policy makers; corporate investors; international venture capital funds |
| Taxes as drivers for innovation and re-allocation of funds | – Incentives to change passive capital into wealth and jobs generating investment – Save startups from heavy tax burden |
national authorities |
| Increasing market liquidity to avoid equity gaps | – Raise venture capitalists capacity with a “fund of funds” facility – More engagement from corporate investors – Adapt regulation to the needs of growing startups or how to prevent them to go public in the US – Easy on capital adequacy requirements for institutional investors of early stage VC funds |
national and European policy makers; corporate investors; capital markets’ regulators |
| Raising awareness and changing mindsets towards a favorable risk culture | – Education for both entrepreneurs and investors – Campaign: “Proud to be an investor” – Recognise investees and investors |
national and European policy makers; academia; startup ecosystem stakeholders |
| Making investment easier and clearer for both businesses and investors | – Standardise and facilitate company creation anywhere in Europe – Set a common definition for business angel – Better data collection |
national and European policy makers |
You can read the whole manifesto and sign it (if you want to) here: http://www.startupinvestorsmanifesto.eu.