Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - NordicAIP (Nordic Angel Investment Program)

Teaser

Nordic Angel Program (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...

Summary

Nordic Angel Program (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 (Arctic15, Latitude 59, Slush, etc) in the Nordic & Baltic region, 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.

The 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

Nordic Angel Program aims to help European high-tech start-ups and innovative SMEs to grow and scale up at pan-European and global level.

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.

The Nordic AIP project 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.

Work performed

Nordic Angel Program has finished its first year of operations with two batches of the program run by the four business angels networks in Estonia, Finland, Norway and Denmark. The program has launched successfully with good results in the pilot batch and great results in the second batch. The project is on track to reach its goals with most work still to be done in attracting more cross-border investors and increasing the investment sum.

The following was achieved:
• ca 900.000 stakeholders informed about Nordic Angel Program’s activities, including startups, investors, ecosystem stakeholders, general public
• 8 Angel Investment Programs (NAPs) were organized in 4 countries
• 922 startup applications were received for the NAPs
• 237 investors involved in the trainings, workshops and due diligence process
• The average amount of cross-border investors was 18%, as the average amount of cross-border investors in batch 1 was 16%. The program average goal 20% was surpasses in batch 2 with 21% international investors involved
• 1,135,000 EUR invested (money transferred) into the 6 ICT startups and scaleups, additional 413,956 EUR committed by investors in the running batches, meaning that €1,548,956.00 is invested or commited to invest into ICT startups by NAP syndicates

There have been several investments, that have been strongly influenced by the program, including co-investments with the syndicates and investments in runnerups of the program both by NAP investors as well as external investors. Altogether 12 investments into ICT startups have been carried out or are committed, including the NAP syndicate and additional investments totaling €2,517,612.

In order 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. The following was achieved:
• The improved version of NAP Toolbox was completed and disseminated within the Business Angel Network managers. The final version will be finished by the end of the 3rd Nordic Angel Program batch. The toolbox will be designed and published publicly on websites and newsletters
• Funnel management system developed and tested as follows:
- Eight Nordic Angel Programs organized in 4 countries
- Altogether 922 startups applied for participating the program. (NAP1 - 473 startups, NAP2 - 449 startups).
- Trainings, workshops and study trips. 237 investors involved in the NAP trainings, workshops and due diligence process:
* Altogether 32 Trainings for angel investors (4 trainings per NAP per BAN)
* Altogether 27 workshops for investors and startups (ca 3 workshops per NAP per BAN)
* 3 study trips for NAP investors and angel group - Tel Aviv, Copenhagen and Silicon Valley, US.
• Technology platform ICT startup Includer was used by all partners, with all 4 modules fully completed within the timeframe

Final results

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 very good, considering that there have been multiple co-investments with NAP and investments into runnerups of the programs. This is evidence of trust in NAP\'s selection and evaluation process. The investments total €2,517,612.

During 24 months Nordic Angel Program project will deliver the following outputs:
• 200 000 stakeholders are informed about NordicAIP activities
• Technology platform ICT Startup Includer developed for facilitating cross-border investment processes
• 16 Angel Investment Programs (AIPs) are organized in 4 countries
• 1000-1600 applications are received for the AIPs (50-100 in each)
• Selection of 360 ICT startups and scaleups in total, 20 per AIP to enter the program
• 400 investors are involved in the AIP trainings, workshops and due diligence process of the AIPs (25 investors in each AIP) and make an actual investment of ca 10 000 EUR
• 20% of the investors are cross border from the Nordic region and beyond
• 16 innovative ICT startups and scaleups receive funding via the AIPs, further syndication activities are stimulated through the joint sessions in the AIP
• 4 million euros are invested into the ICT startups and scaleups in total (approximately 250 000 per AIP)

The expected long-term impacts to be generated from previously mentioned Nordic Angel Program activities are:
• 8 companies manage to scale at European level and get next round financing:
• 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
• Increased business activity and competitive position of EU industry
• Smarter and more efficient services and business processes available
• Sustainable economic growth and development

Website & more info

More info: https://www.nordicangelprogram.com/.