4th Annual Internet of Things Conference – financing panel
4th Annual Internet of Things Europe Conference, 13 November 2012, Brussels
The key points coming out of the Financing panel discussion, which I moderated, at the IoT Europe Conference in Brussels included the following:
• Business angels can be vital for seed and start-up financing and are increasingly filling some of the gap left by VCs who are moving to later-stage or growth equity investing. But we need more business angel capital in Europe: how do we find more angels (and angel syndicates) to invest in early-stage ventures / how can they be accessed?
• Is there a lack of investable opportunities in Europe (compared to the USA)? One of the issues with young companies seeking financing is that they are often not properly prepared for the financing process. More investment readiness training is needed (perhaps an opportunity for accountants and other advisers).
• Another issue is whether companies have the ability to scale sufficiently.
• The EIF appears to invest significantly in only three countries – this should be expanded throughout Europe.
• There is a need for less bureaucracy in the provision of sources of government funding – less form filling.
• US VCs still tend to be largely “zip-code” investors so difficult for European companies to access US VC financing.
• European companies (certainly in Germany) are reluctant to give up control to outside investors, preferring to keep equity ownership “in the family”.
• We should stop continuously comparing ourselves with the USA and develop our own models here in Europe.
The panel members comprised:
Stephane Goubau, Managing Director Western Europe Region, Intel Capital
Paulo Andrez, President, The European Trade Association for Business Angels, Seed Funds and other Early Stage Market Players (EBAN)
Adam Gould, CEO, Sensinode
Thibaut Kleiner, Member of Cabinet for Vice President Kroes, European Commission.
Clearly these areas are worthy of much more discussion and generation of possible solutions.
