Periodic Reporting for period 2 - NordicAIP (Nordic Angel Investment Program)
Reporting period: 2019-01-01 to 2019-12-31
Nordic Angel Program (NAP) aims to help European high-tech start-ups and innovative SMEs to grow and scale up at pan-European and global level by training angel investors in investing to early stage start-ups and encouraging cross-border syndicated investments.
NAP is an international training and investment program for startup investors run by Nordic & Baltic angel networks EstBAN, FiBAN, DanBAN and BANNorway supported by Civitta and the Nordic angel network NordicBAN and powered by the investment platform Startup Includer.
Programs run by the angel networks cover a 3-month angel training period, including joint study trips, evaluation of startups and networking with experienced angel investors. NAP links with some of the leading startup events in the Nordic & Baltic region (Arctic15, Latitude 59, Slush, sTARTUp Day, etc), culminating in a syndicated investment chosen by the investor group.
The main services of the program include investor trainings led by experienced business angels, facilitation of group investments, deal flow management with an investment platform and links to some of the main Nordic startup events.
One program spans over three months and consists of four parts:
• Building the investment group: 20-25 participants in each program
• Training sessions for participants: four training sessions and workshops in each program
• Group evaluation of startup applications from a startup conference: access to the Startup Includer platform
• Culminating with a group investment and follow-up: approximately 250.000€ invested in each program
Direct objectives of the project are:
• To enlarge the pool of active early stage investors (investors doing at least 1 investment per year) with relevant understanding of market trends, business models, investment mechanics and instruments and practical business angel skills.
• To provide the investor and ICT startup community in EU relevant up to date tools and practices for networking, learning and cooperative investment management.
In addition to direct financial support raised for SMEs through this project, NordicAIP also contributes to the elevation of business angels’ investment and managerial skills and sustainability of the established BANs in the Nordic region. This in turn ensures the sustainability of the project results.
NAP is an international training and investment program for startup investors run by Nordic & Baltic angel networks EstBAN, FiBAN, DanBAN and BANNorway supported by Civitta and the Nordic angel network NordicBAN and powered by the investment platform Startup Includer.
Programs run by the angel networks cover a 3-month angel training period, including joint study trips, evaluation of startups and networking with experienced angel investors. NAP links with some of the leading startup events in the Nordic & Baltic region (Arctic15, Latitude 59, Slush, sTARTUp Day, etc), culminating in a syndicated investment chosen by the investor group.
The main services of the program include investor trainings led by experienced business angels, facilitation of group investments, deal flow management with an investment platform and links to some of the main Nordic startup events.
One program spans over three months and consists of four parts:
• Building the investment group: 20-25 participants in each program
• Training sessions for participants: four training sessions and workshops in each program
• Group evaluation of startup applications from a startup conference: access to the Startup Includer platform
• Culminating with a group investment and follow-up: approximately 250.000€ invested in each program
Direct objectives of the project are:
• To enlarge the pool of active early stage investors (investors doing at least 1 investment per year) with relevant understanding of market trends, business models, investment mechanics and instruments and practical business angel skills.
• To provide the investor and ICT startup community in EU relevant up to date tools and practices for networking, learning and cooperative investment management.
In addition to direct financial support raised for SMEs through this project, NordicAIP also contributes to the elevation of business angels’ investment and managerial skills and sustainability of the established BANs in the Nordic region. This in turn ensures the sustainability of the project results.
Nordic Angel Program has finished its second year of operations with four batches of the program run by four business angels networks in Estonia, Finland, Norway and Denmark (16 batches in total). The program launched successfully with good results which were elevated for the latest batch once stakeholders' attention and interest was attracted. The project finishes with all KPIs successfully reached while most work is to be done in attracting more cross-border investors and increasing the total investment sums that are invested into European ICT startups.
To address the first direct objective and enlarge the pool of active eraly stage investors, the following was achieved:
* Ca. 1,600,000 stakeholders were informed about Nordic Angel Program’s activities, including startups, investors, ecosystem stakeholders, general public.
* 16 Angel Investment Programs (NAPs) were organized in 4 countries.
* 1877 startup applications were received to take part of NAPs.
* 560 investors were involved in the trainings, workshops and due diligence process.
* 20% cross-border investors were involved in NAP on average.
* Approx. 3,250,000 EUR was invested (money transferred) into 19 ICT startups and scaleups chosen as NAP winners and additional 1,700,000 EUR committed to another 3 companies from NAP deal flow by investors influenced by the program that joined in the running batches or invested to runner-ups. As a result, close to €5,000,000 was invested or commited to invest into ICT startups by NAP-related syndicates in total.
The second objective of the proejct was to provide the investor and ICT startup community in EU with relevant up to date tools and practices for networking, learning and cooperative investment management the partners designed and implemented Nordic Angel Program methodology supported by the Startup Includer technology. With regards to this objective of the project, the following was achieved:
* A final version of NAP Toolbox was developed, completed and disseminated within the Business Angel Networks in Europe and beyond.
* Funnel management system developed and tested as follows:
- 16 Nordic Angel Programs organized in 4 countries and introduced to other interested BANs in Europe and further.
- 64 trainings, 54 workshops and 9 study trips organized for NAP investors as a way to broaden their knowledge, share skills and encourage best practice sharing.
* Technology platform ICT startup Includer was developed according to BAN managers' needs specifically and exploited by all partners, with its 4 modules targeted to support angel investing (in the interest of this project and its sustainability) fully completed within the timeframe and further developed according to continuous input received from BAN managers running NAPs.
To address the first direct objective and enlarge the pool of active eraly stage investors, the following was achieved:
* Ca. 1,600,000 stakeholders were informed about Nordic Angel Program’s activities, including startups, investors, ecosystem stakeholders, general public.
* 16 Angel Investment Programs (NAPs) were organized in 4 countries.
* 1877 startup applications were received to take part of NAPs.
* 560 investors were involved in the trainings, workshops and due diligence process.
* 20% cross-border investors were involved in NAP on average.
* Approx. 3,250,000 EUR was invested (money transferred) into 19 ICT startups and scaleups chosen as NAP winners and additional 1,700,000 EUR committed to another 3 companies from NAP deal flow by investors influenced by the program that joined in the running batches or invested to runner-ups. As a result, close to €5,000,000 was invested or commited to invest into ICT startups by NAP-related syndicates in total.
The second objective of the proejct was to provide the investor and ICT startup community in EU with relevant up to date tools and practices for networking, learning and cooperative investment management the partners designed and implemented Nordic Angel Program methodology supported by the Startup Includer technology. With regards to this objective of the project, the following was achieved:
* A final version of NAP Toolbox was developed, completed and disseminated within the Business Angel Networks in Europe and beyond.
* Funnel management system developed and tested as follows:
- 16 Nordic Angel Programs organized in 4 countries and introduced to other interested BANs in Europe and further.
- 64 trainings, 54 workshops and 9 study trips organized for NAP investors as a way to broaden their knowledge, share skills and encourage best practice sharing.
* Technology platform ICT startup Includer was developed according to BAN managers' needs specifically and exploited by all partners, with its 4 modules targeted to support angel investing (in the interest of this project and its sustainability) fully completed within the timeframe and further developed according to continuous input received from BAN managers running NAPs.
The mission of Nordic Angel Program is to help European high-tech startups and innovative SMEs to grow and scale up at pan-European and global level. The program aims to achieve this by stimulating European investments in digital sectors. The program has gained great traction so far with overperformance in the number of startups and investors attracted to participate in the program as well as the number of stakeholders reached. The interest from the investor communities towards the program has been excellent, especially when to consider the multiple co-investments made in connection to NAP and investments into runnerups of the programs. This is evidence of trust in NAP's selection and evaluation process.
In addition to delivering results beyond expectations set for NordicAIP, additional success and impact was created as follows:
* An alumni network of NAP investors and startups initiated that wish to continue with similar trainings, workshops and programs.
* Learnings of running pilot projects in four Nordic countries with cross-border investment experience was gathered to be disseminated among other BANs interested in the program.
* More than 20 interested parties have been found among European and non-European BANs that would like to learn about the practice and run it in their home country.
* The pool of cross-border investors raised in all participating countries with evidence of higher and better cross-country cooperation.
The expected long-term impacts to be generated from Nordic Angel Program activities and which should be observed in the next 3-5 years after the project are as follows:
* 8 companies manage to scale at European level and get next round financing thanks to NAP activities.
* 200 business angels participate in cross-border financing after the end of the program investing in sum ca 2 mln EUR into 10 companies per year.
* Indirect impact to EU financial market includes increased business activity and competitive position of EU industry, smarter and more efficient services and business processes available.
* Contribution to the overall sustainable economic growth and development.
In addition to delivering results beyond expectations set for NordicAIP, additional success and impact was created as follows:
* An alumni network of NAP investors and startups initiated that wish to continue with similar trainings, workshops and programs.
* Learnings of running pilot projects in four Nordic countries with cross-border investment experience was gathered to be disseminated among other BANs interested in the program.
* More than 20 interested parties have been found among European and non-European BANs that would like to learn about the practice and run it in their home country.
* The pool of cross-border investors raised in all participating countries with evidence of higher and better cross-country cooperation.
The expected long-term impacts to be generated from Nordic Angel Program activities and which should be observed in the next 3-5 years after the project are as follows:
* 8 companies manage to scale at European level and get next round financing thanks to NAP activities.
* 200 business angels participate in cross-border financing after the end of the program investing in sum ca 2 mln EUR into 10 companies per year.
* Indirect impact to EU financial market includes increased business activity and competitive position of EU industry, smarter and more efficient services and business processes available.
* Contribution to the overall sustainable economic growth and development.