CONCLUSIONES Y RECOMENDACIONES - Atrapados o flexibles?

1. Raising awareness of business angels and angel networks.

By supporting the early stages of the development of a functioning business angel market in partnership with the private sector, the public sector can cost-effectively contribute to its overall

economic development and job creation goals. Sustained awareness-raising campaigns are needed in all those Member States and candidate countries where the business angel concept has not yet reached a critical mass. Such campaigns should be arranged by the public and the private sector acting in partnership. The campaigns should increase the level of knowledge of both entrepreneurs and potential angels, including angels from underrepresented groups.

2. Collecting data from the business angel marketplace

Business angels contribute to the development of new enterprises by providing equity investment, managerial experience, and their own contacts in the business community. Business angels are an important factor in sustaining new enterprises, and through that the economic development of an area, and an economy. To increase the visibility of the market and to support the public policies aiming at supporting the angel market, a concentrated Europe-wide effort is needed to gather more data on business angels.

3 Creating a business angel panel to discuss topical issues affecting the angel community.

Its informal nature leads often to a low visibility of the business angel investment market. To address this and to provide a forum where business angels could discuss topical items and report on these, it is recommended that an European-level business angel panel is convened in cooperation with the actors representing the risk capital community. Such a panel would help the European Business Angel Network in increasing the visibility of the angels at European level.

4. Paying attention to the effects of taxation on business angel activity.

The taxation of risk capital and equity investments has an effect on their attractiveness, as it directly affects the return the investor receives from his investments. A tax environment that encourages risky investments can be favoured by low capital gains tax for business angel investments, or by introducing tax breaks for eligible investments. An unfavourable taxation framework might deter investments and thus act as a drag on wealth and job creation.

5. Ensuring public financing of business angel network operations

Many angel networks already receive public support from local, regional or Member State authorities. Public sector support has also been channelled through the European Regional Development Fund. This public sector support enables the networks to increase investment readiness, facilitate matching, organise awareness raising, training and other support activities. Through these activities the networks support local wealth and job creation. Particularly local and regional authorities can reap great benefits for their region through active business angel networks, and they should seriously consider financial support programmes particularly for newly established business angel networks.

6. Promoting high ethical standards of business angel networks

Many angel networks already subscribe to a code of conduct, but more should be encouraged to do so. The development of the business angel marketplace is best supported by transparent rules of behaviour promoting high ethical standards for both investors and entrepreneurs.

ANNEX Members of the expert group

Mr Bernard Surlemont Université de Lausanne

BFSH1

CH-1015 Lausanne