Estonian Business Angels Network (EstBAN)

1. Signe Viimsalu
CEO
Estonian Business Angels Network
European Entrepreneurship & Innovation Thought Leaders
Stanford Engineering
January 13, 2014

2. EUROPE IN 2012:
5,1bln EUR invested by angels vs
1,9 bln EUR invested by VCs
19% visible angel market growth
460 BANs identified
260,000+ business angels
operating through BANs
www.eban.org

3. EUROPE IN 2012:
almost 3000 companies financed
almost 18000 jobs created
for every 100 BAs -
16 companies got funded
fastest growing markets =
Finland, Ireland and Turkey
www.eban.org

4. What’s
happening
in Estonia?"

6. EstVCA investing
members in 2012:
7461
employees
Buyout
10
€ 192
m
Funds
under
management
Expansion
8
Growth
20
Sector
distribu8on
IT
20
Business
&
Industrial
Services
10
Consumer
Services
13
Computer
&
Consumer
electronics
8
Business
&
Industrial
Products
7
Life
Sciences
7
CommunicaSons
6
Energy
&
Environment
5
Seed
14
*2360
in
Estonia
(32%)
Turnover
82
Por$olio
companies
621m
Startup
23
Headquarters
Early
Growth
7
www.estvca.ee
*
378m
in
Estonia
(61%)
Estonia
40
Latvia
13
Lithuania
8
USA
7
Finland
3
UK
3
Singapore
2
Other
6

7. EstVCA vision for year 2020
€
SEED
EstVCA members =
1 billion under management
VC
€
100m
FoF
€
200m
PRIVATE
EQUITY
/
MEZZANINE
€
700m
Baltic
Innovation
Fund
I,
II

8. What’s so special
about EstBAN?

11. A shared
experience is the
best experience!"

13. EstBAN is: "
*the 1st BAN in Estonia
*established in late 2012 &
proactive since March 2013
*1st umbrella organization in Europe
established only by private individuals
*full member of EBAN and EstVCA
since April 2013
*partnering with FiBAN & SoBA

14. In 2013 we have invested in

15. Membership – NOT
ONLY FROM
ESTONIA!!!
http://
www.estban.ee/forinvestors/members

16. We don’t care which phone you use.
The passion & ability to invest in startup –
that’s what matters!

17. Each new applicant must have a
recommendation of two existing
members

18. Where to invest?
STARTUPS –
http://
www.estban.ee/forentrepreneurs/apply

19. Founders
commitment
& TEAM"

20. Super"
stuff"

21. How to use Estonia
for investing?
http://
www.financeestonia
.eu/why-estonia/

22. Invest through Estonian
Company."
Collect dividends to an
Estonian Company."
Dividends collected from your
investment are not taxed until
distributed."
Redistribution of dividends
received is often exempted
from Corporate Income Tax.
No withholding tax (more
favorable than Payment
Services Directive)."
Thus, the total cost of passthrough dividends is often the
tax paid at the source country."
"
Shareholders
"
Dividends
Estonian Company
Dividends
(holding at least 10% +
some other criterias)
Investment

23. Estonian Company could be
used successfully as an
intermediary for cross border
financing."
Payments collected to Estonian
Company are not taxed until
distributed."
Interest payments from
Estonian Company to overseas
are not subject to taxation and
withholding in Estonia unless
exceed arm’s length interest
(more favorable than Interests
& Royalties Directive)."
There are no thin capitalization
rules."
."
Financing company
"
"
Repayment +
Loan
Interest
Estonian Company
Investment Payment
Other Group
companies

24. In conclusion…
http://www.estban.ee/events
Estonian ICT Week & Latitude59.eu
in April, 28-29
http://estonia.eu/ictweek/
FinanceEstonia 2nd International Forum
in June, 17-18
http://www.financeestonia.eu/summary/

25. Thank you&
welcome to
Est(BAN)onia!
Skype:signeviimsalu
www.estban.ee
signe@estban.ee