Allowed the creation of a large community of potential investors to become real business angels. It attracted expertise, networking and provate money to the Portuguese entrepreneurial ecosystem.
Paulo Andrez, Ricardo Luz, Francisco Banha, Luis Costa (President of IAPMEI in 2009)
PME Investimentos (PT)
Start-up means in this context companies less than 4 years old.
Initially the government wanted to fund only 20 investment vehicles (770.000 euros of investment each vehicle) but due to the quality of proposals, the government was “forced” to co-invest with 54 investment vehicles.
Initially the government wanted to invest form its side 10 million euros but in the end, due to the high quality of proposals, increased that amount to 29.275.000 euros, matching 16.324.000 euros from the private investors.
Total amount invested by Business Angels Investment vehicles: 45.600.000 euros
Total amount invested by State: 16.324.000 euros
Number of BA investment vehicles: 55
Number of Business Angels involved: 268
Number of companies supported: 158
Number of investments: 307
New jobs created: 398
Jobs created and maintained: 826
And the best result, is that it started a new era of access to finance to entrepreneurs in Portugal
In terms of lessons:
- Some investment vehicles were not located in urban areas so they had some difficulty in finding deal flow
- There were some geographical restrictions of the investments
- Some excessive bureaucracy in the beginning of the scheme, that was improved afterwards
- Existence of templates of shareholder agreements would help a lot to speed the processes
- Very quick process of approval (less than one month on average), after each operation was submitted by the investment vehicles.
- Training for investors was very important
- Initial roadshow to attract investors was really important
- Certification of business angels prior to selection of investment vehicles made a positive impact