Business Angel Network in CEE

I have been very busy the last few weeks and this explains the lack of input in my blog. With the coming Xmas season, I do not hope to do any better!

Anyhow, one of the big issues for entrepreneurs (from East or West) is to pass through the equity gap (the so called “Valley of Death”). The Valley of death is the time when a start-up deeply needs to raise funding between 25K to 500K Euros.

One “new” investment tool to in Europe address the problem is the development of BAN (Business Angel Network). However, the east-west divide is strongly felt on the subject. In 2005 there are a registered around 240 BAN in Europe (according to EBAN, the European association of BAN). There is only an estimated 10 in CEE countries. To make the matter worse these 10 BANs are concentrated in 3 cities: Moscow (4), Warsaw (2) and Prague (2).

So for entrepreneurs and innovators of Central and Eastern Europe access to this essential tool to pass over the Valley of Death is extremely difficult. This was discussed last week in an international conference on Entrepreneurship in Vilnius (link)

In the Eastern Baltic region there is no known BAN. However, a glimpse of hope exists in 2 initiatives. Connect Latvia is reportedly preparing to set-up the first BAN in Riga. In Lithuania, the Sunrise Valley (in Vilnius) with the help of my organisation (e-coventure) will be launching early 2006 the first BAN in this region.