Transnational research for diagnosing the current situation of the BA Markets in the MED and in the...

7/27/2019 Transnational research for diagnosing the current situation of the BA Markets in the MED and in the EU

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RESEARCH FOR BA MARKETS IN THE MED AND IN THE EU VERSION: 011

C3: Best practice analysis of sustainable measures and perspectives for theadvancement of the Business Angel Market in the MED

EXEMPLAS

Issue date: 30/09/10 MACC-BAM EXEMPLAS S-PU D3.1 Research BA in MED_EU MCA 011.doc Page 1 of 18

Measures to Accelerate the Mediterranean

Business Angel Market

Transnational research for diagnosing thecurrent situation of the BA Markets in the MED

and in the EU

30th

September 2010

Programme co-financed by the European Regional Development Fund


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Document History

Version Main Author Date Description Pages

006 MCA 15/07/2010 Final draft to be approved 18

010 MCA 21/10/2010 Final Version 18+Annex

Attached Documents

File Name Short Description

Appendix I: Country feedback information From Italy, Greece & France

MACC-BAM

Transnational research for diagnosing the current situation of the BA

Markets in the MED and in the EU

Author:

Martin Carr


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Table of Contents

1 Background........................................................................................................................... 42 Methodology..................................................................................................................... 43 Partner Findings.............................................................................................................. 4

3.1 France......................................................................................................................... 43.1.1 Management of Networks......................................................................................... 53.1.2 Financing Networks .................................................................................................. 53.1.3 Promotion/Awareness ............................................................................................... 63.1.4 Public Policy ............................................................................................................. 63.1.5 Financial Guarantees ................................................................................................ 63.1.6 Other findings from Research and feedback ............................................................ 7

3.2 Greece........................................................................................................................ 83.3 Italy............................................................................................................................. 8

3.3.1 Management of Networks......................................................................................... 93.3.2 Financing Networks ................................................................................................ 103.3.3 Promotion /Awareness ............................................................................................ 103.3.4 Public Policy ........................................................................................................... 10

3.4 UK............................................................................................................................... 113.4.1 Challenges facing networks .................................................................................... 113.4.2 Challenges facing Investees ...................................................................................... 113.4.3 Challenges facing Investors ....................................................................................... 123.4.4 Good practices ........................................................................................................ 123.4.5 National Financial Environment ............................................................................. 13

4 Summary of findings.................................................................................................. 134.1 Management and operation of Business Angel Networks.................... 13

4.1.1 Funding ................................................................................................................... 134.1.2 Management ........................................................................................................... 134.1.3 Provision of services ............................................................................................... 144.1.4 Recruitment of Angels ............................................................................................ 144.1.5 Angel Syndication .................................................................................................. 15

4.2 Financial Tools and Instruments.................................................................... 164.2.1 Guarantees .............................................................................................................. 164.2.2 Co Investment Funds .............................................................................................. 16

4.3 Promotion and awareness raising of Business Angel Activity............ 164.4 Public Policy............................................................................................................. 16

Appendix I: Country feedback information............................................................... 18


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1 Background

The Macc-Bam project has been established to accelerate the Business Angel market andactivity in the Mediterranean region of Europe.

One of the aims of the project is to identify activity in the main partner countries of the

project (France, Greece and Italy) and networks and practices that are in existence and

also to identify good practices that can be introduced.Good practices in respect of management of networks, financing of networks, promotion

and awareness of the concept of Business Angel activity and public policy.

2 Methodology

Each partner country conducted research in their own country by sending out

questionnaires to national associations and networks in order to gather information aboutactivity in countries and gather good practices.

At the same time each partner was able to obtain feedback on the challenges and

problems facing networks and indeed awareness in communities and business of BusinessAngel activities.

Research was also carried out in the UK, as the UK has a well established Business Angelmarket where the concept has been around and heavily promoted in the last 12 years.

Following on from the questionnaires and research documents that were completed around

table meeting, which was held in the UK in early January 2010 where representatives fromthe participating countries met to discuss findings, best practices and challenges facing

partners in raising awareness of the Business Angel concept and to discuss best practicesand procedures that partners used or were aware of.

A summary of the findings of each country is given below together with a summary of

those findings towards the end of the report (in the appendix).

3 Partner Findings

3.1 France

In France there is a national Business Angel Network France Angels - and other BusinessAngel networks. We received formal responses from Sophia Business Angels, Sud Angels,

Var Business Angels, Grand Delta Angels, Lyon Angels, Savoie Angels, AlumniEntreprendre and Provence Business Angels.

France Angels is a national association formed in 2001 and provides support for networks

in France who agree to be members and sign up to the organisations code of conduct.


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The organisation monitors activity in France and provided us with statistics indicating thatthey have 81 active Business Angel networks and 38 associated members (investors and

professionals). At end of 2009 they had 81 Business Angel network members representing4000 Business Angels. They completed 380 deals raising 64m.

Details of history of the organisation and its activities are stated as:

Promote investment by Business Angels in France in order to quickly and stronglyincrease their number and thus make this resource available to as many entrepreneurs

as possible who are looking for funding;

Represent Business Angels within French and European institutions, public and private,notably in order to create favourable conditions for the development of this activity;

Accompany the development of Business Angels networks and professionalize theiraction by facilitating the exchange of best practices between networks themselves,

and between the networks and external partners (seed funding and venture capitalorganizations in particular), at a regional, national and international level.

From the information provided by France Angels and the other networks who responded

and input from French partners the following was identified:

I have broken the findings down into key areas

3.1.1 Management of Networks

France Angels:-

Supports the creation of Business Angels networks: the creation of a Business Angels

network is very specific, in particular in a region, and must be adapted to every specific

case. Thus, France Angels provides its know-how and contacts. Organisation of Business Angels Schools to support the creation of Business Angels

networks, and recruit and stimulate new Business Angels.

Organisation of training cycles for leaders and major partners of Business Angelsnetworks.

Provides tools and a technical support to leaders of Business Angels networks - inparticular with the creation and coordination of a Resources Centre.

The organisation also provides tools and help and advice on its website and a regularnewsletter.

3.1.2 Financing Networks

One of the major problems facing Angel Networks is the financing of their activities From

our research that we carried out we were able to ascertain that in France the variousnetworks used a wide range of Funding sources. Examples given are regional grants,

Member contributions both Investor and corporate memberships, Income from events andconferences, public funding both regional and National, and Sponsorship and from banks.


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3.1.3 Promotion/Awareness

France Angels ( the national network in France) sees its role to promote angel activity

in France, to raise awareness of angel activity, and obtain investment for companies. Itcarries out activities in the following ways:-

Systematic communication actions towards networks, partners and actors who createand fund innovative companies, potential Business Angels, project holders and the

media.

Creation of a Business Angels networks directory.

Every year, organisation of the Business Angels Week (in November): during 5 daysand in 5 cities, 5 events meant to present the Business Angels activity to the general

public, to entrepreneurs, investors and partners. Organisation every 12 to 18 months of a national major symposium about Business

Angels and seed capital.

3.1.4 Public Policy

France Angels carries out the following activities:-

Lobbying actions towards public and local authorities.

Cooperates closely and provides its particular knowledge to the major national actors

((Ministries, Chamber of commerce, Development Agencies, CDC (Bank for officialdeposits), APCE (Business start-up agency), AFIC (French private equity association),RETIS (French network of academic incubators, business innovation centres and

sciences parks and technopoles), UNICer (Organisation bringing together venturecapital companies investing in regional businesses in expansion)), Croissance Plus.

Takes part in the major European, national and regional events related to businessstart-up.

Study made every year about the activity and profile of Business Angels in France.

Tax incentives for investing have been introduced (Law Madelin and Law Tepa).

They are regarded as important and should be seen as the icing on the cake forinvestors but not the only catalyst for growth of Business Angel activity. They are

however considered good to encourage activity.

3.1.5 Financial Guarantees

In France there are guarantees available for investors. The guarantees are made available

by OSEO.

The guarantees are not available to individual investors but to a company that must becomposed of at least 3 members. The Angel Investors therefore set up a company to

make the investment.


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Investments can be made into early stage companies less than 7 years old. Theguarantee is for 50%, increased to 70% in the case of companies less than 5 years old.

An annual guarantee fee of 0.30% is charged on the amount of the investment.

3.1.6 Other findings from Research and feedback

From findings of CCIDR (Sonia Bertonnier) it is considered important in order to succeedthat:-

it is very important to integrate/recruit news members: to have a greater financialcapacity, to ensure the network has the capacity to both support undergoing projects

and identify and analyse new ones (question of time, of investment capacity, in and outmembers)

it is also important for a Business Angel Network (BAN), to have the capacity to identifyand support added value projects (innovative and with a great growth capacity): first to

advertise the BAN to potential investors and stakeholders / to motivate the currentmembers / to ensure new financial capacity for members when selling their shares with

success.

and the last but not least, to have partnerships with local, regional and even national

stakeholders (to be visible, to be powerful in order to finance greater projects and toobtain more credibility and institutional support) for eg partnership with OSEO, the

national organisation financing innovation and providing guarantees to investee projects

and also Investment Society networks if they are coming from BAN (if not, fundsare not guaranteed).

Important points from feedback from Angel networks in FranceVery important to choose membership Quality rather than Quantity

(Sophia Business Angels Network)

Difficulty to find new Business Angels

(Sud Angels)

Project fail because of lack of quality of the management teamBad potential of output (sale)

(Var Business Angels)

Lack of good projects(Lyon Angels)

Taking care when selecting projects. The manager of the company has to be good(Savoie Angels)

Reasons for failure: bad management and lack of indictors

(Alumni Entreprendre)

Problem for entrepreneurs after matching the negotiation of enterprise valuation(Provence Business Angels)


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3.2 Greece

The Business Angel market in Greece is less well developed than in some other EUcountries.

There appears to be only two networks that operate and it is stated that there is a strong

need to raise awareness about the benefits of Business Angels and to inform potentialBusiness Angels and entrepreneurs about the advantages of Business Angel networks and

the benefits that they bring. There are however 12 venture capital companies operating inthe country.

It is interesting to note that from reports received that most Business Angel investment

comes from close family and friends rather than from outside investors. It is a view heldin Greece that informal investment appears to be mainly a family affair. This we conclude

to be a cultural issue as it was not a comment that we received from other countries.

Certainly it has not been raised as experience in UK. There is a widely held view that agood source of finance, certainly for amounts of Equity up to 25K euro, is family andfriends. However from feed back received from Greece it appears to be more widely used

in Greece than other countries.

We have been advised that there is a view held in Greece that very few efforts have beenmade for the development of Business Angel networks and there is a big opportunity to

grow this supply of investment capital and activity.

3.3 Italy

In Italy there is a national Business Angel Network IBAN. The organisation is non-profit

making and has 130 members comprising BANs investor clubs, Business Angels andprofessionals in matching investors with entrepreneurs.

It provides its members:

Studies, research, stats about the sector

Lobbying activities towards public authorities in order to create a better environment for

Business Angels. Scouting and helping the financing of start-ups and SMEs (Investment Readiness)

Setting up of Business Angel networks and clubs (ready to invest).

Organising Investment Forums between investors and companies searching for capital.

Organising Business Angel academy training events.

Stimulating the exchange of experience among Business Angel networks and

encouraging good practice. Website

Increasing the sources of finance for unlisted SMEs and start-ups.

The organisation also has many tools available to members:-

Setting up a BAN.


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Networking and exchanges of best practice.

Business Angel academy toolkit.

Guide to setting up a business with Business Angel.

Code of conduct that clarifies the rights and duties of BANs and Business Angels.

Legal and fiscal handbook for Business Angels.

In 2008 they had 310 Business Angels and matched 123 projects raising 31.5m.

We are advised that typically they receive 225 business plans, of these 120 are acceptedand 105 declined. Every month investors receive approximately 10 business plans to

consider for investment.

IBAN also has a dedicated sector ICT run by IBAN for the whole of Italy. IBAN offersentrepreneurs tools and slides to assist entrepreneurs in presenting their proposals. They

also provide Investment Readiness programmes that they consider essential to improve

entrepreneurs chances of obtaining funding. They consider that if they are presented with700 propositions typically 130 will be funded.

We received feedback, via IBAN, from 11 Business Angel networks. Key points from

network comments are summarised below together with feedback from IBAN.

Good quality of management team is essential for investment to take place(BAN Liguriaa)

Sustainable Business Models are essential

(Digital BAN)

How money raised will be used

The Business Angels roleExit route

(IAG association Italian Angel for Growth)

Lack of understanding by entrepreneurs concerning the role of Business Angels and

characteristics of his/her investment(Ban Bresica)

Business Plan not well developed and sustainable

(Ban Lazio)

No clear exit(Digital Ban)

3.3.1 Management of Networks

To train Business Angel managers in particular with deal scouting, recruiting BusinessAngels and organising Investment Readiness events.

BAN often fail through low entrepreneurial experience of BAN managers.

Entrepreneurs often experience difficulties in evaluating businesses (help should be

provided).


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Need to provide service to help entrepreneurs be clear about exit strategies.

Good to have common code of conduct across all networks.

Standard rules and procedures.

Relationship within national and European network.

3.3.2 Financing Networks

In Italy there are examples of many sources of income to finance the Networks.Our research indicated these to be:

Fees from Business Angels Sponsorship financing from parent organisations

Regional funding

Bank sponsorship

Entrepreneurs join in network fee

Success fees

It was interesting to note that the organisation that stated success fees as a source offunding obtained 34% of their income from these fees. This organisation appeared to be

self sufficient from its Angel Investing activities and stated its income as 33% from Angels,33% from Entrepreneurs and 34% from the success fees.

3.3.3 Promotion /Awareness

Research local organisations with expertise in SME support.

Essential to study and map the local economical and financial environment in order toasses the characteristics of demand and supply.

(i.e. deal flow and investors). Involvement of speakers and testimonials at local events.

3.3.4 Public Policy

There is a good financial climate in which to operate eg tax breaks and incentives forinvestors.

As from July 2008 Capital gains realised on both qualified and not qualified by privateindividual investors ( I e Business Angels )

Not in Business capacity , are tax exempt if Shares have been owned for at least 3 years

Companies that shares are owned in have been established no longer than 7 years.

Companies in which shares are held have to be in Industrial/productive investments

Capital gains must be re Invested into start up companies within 2 years the gain

accrued


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3.4 UK

In the UK the Business Angel market is well established and there are many good practicesin place. This is largely as a result of government intervention through encouraging early

stage investment and Business Angel activity over the last 12 years and the creation of afinancial environment to encourage investment e g tax incentives.

There is a national association of Business Angel Networks - British Business Angels

Association (BBAA) whose role is to assist organisations and investors involved in earlystage financing. This is part government funded and was heavily subsidised bygovernment in its formative years.

In addition to any private activities of Private Equity Investors and Business Angels thereare 23 established Business Angel Networks who are members of BBAA and promote

themselves as Angel Networks with the aim of matching investors with investee companies

looking for funding.

Exemplas carried out a survey with Business Angel Networks in the UK but it has to be

said that the formal response was disappointingly low. In view of this a number ofinformal discussions took place and Exemplas was able to ascertain examples of good

practice, challenges facing companies in raising finance, challenges facing networks andnetwork managers and problems that companies face in obtaining funding.

The UK is fortunate in that Business Angel investing and early stage investment has been

high on government priorities for many years. Below is a summary of the findings in theUK:

3.4.1 Challenges facing networks

Financial sustainability of networks

Shortage of good investors.

Low numbers of applicants that achieve funding

(Only 2% according to Harrison /Murray survey).

3.4.2 Challenges facing Investees

The biggest challenge facing investees ( entrepreneurs looking for investment ) is the

ability to create a good viable business model from a good idea and then going on to beable to present this both in writing and verbally to a potential investor. This has been

recognised as a major barrier in UK and because of this there is now a nationalprogramme of help and support funded by regional development agencies that delivers

Investment readiness programmes. These programmes are specifically targeted atcompanies looking for funding.

The programs educate entrepreneurs into:-

The types of funding that are available and suitable


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What investors look for in propositions

How to create viable business models

Cash and profit forecasting

Business plan writing

Verbal presentation and pitching skills

They also explain the Investment process and the different requirements of funders-

whether it be Bank finance or Equity Investment.

3.4.3 Challenges facing Investors

There are three main challenges facing investors and potential investors:-

lack of understanding of how to invest and the implications,

lack of funds for follow on rounds

locating good investment opportunities.

These problems have been identified in the UK and many Business angel networks nowprovide help, advice and services in order to attract new investors to their networks. Such

help often include:-

Seminars for virgin investorsSeminars that explain how private equity works, what is expected of investors, tax breaks,

and often encourage syndicates where investors can group together with an experiencedlead investor. In this way risks for the investors are spread in that they can invest in more

propositions as they are investing less in each deal and also become more experienced asthey invest in more deals and share experience

Co Investment FundsFunds that are put together with public or private monies and co invest along side

business angels. The fund manager often relies upon the due diligence carried out by theBusiness angel investor and the funds leverage up the funds of Angel Investors. The skills

and input of the Angel is therefore available to more companies. Also the funds can belarge and can fund follow on investment rounds when often an Angel has run out of cash

that he is able to invest further into a company at what can often be a critical stage.

Business angel networks.

Investors often complain that it is very difficult to locate good opportunities. It is for thisreason that Business Angel Networks were established in the UK and that these networks

provide the services to Investees in order to make their propositions attractive to

Investors.In UK networks are encouraged to join the National Association, supported by the

government, and to join networks have to agree to operate to a code of conduct.

3.4.4 Good practices

National association provides tools, code conduct, advice, workshops etc for Angel

Networks.

Networks obtain sponsorship to help make then financially viable.


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Availability of national Investment Readiness programme to assist companies indeveloping viable fundable businesses.

3.4.5 National Financial Environment

Good tax incentives to encourage investment in qualifying companies. Historically money has been made available to encourage National Business Angel

association which has provided a good over arching association that promotes theindustry to entrepreneurs, investors and lobbies government and other influentialbodies. It also provides support for all of those involved in the industry.

4 Summary of findings

Clearly there are many good practices throughout Europe that can be shared and manychallenges facing Business Angels, Business Angel Networks and Economies that need

good level of small and growing companies in order to create wealth and employment.

Finance for these companies is now becoming harder to obtain as bank funding appears tobe harder to obtain and is becoming scarcer. Yet we are at a time when if economies are

to grow they need to encourage wealth and job creation through the encouragement ofsmall and growing enterprises.

Below we list our findings under four main areas Management and Operation of Business

Angel Networks, Financial Tools and Instruments, Promotion and Raising Awareness ofBusiness Angel Activity, and Public Policy.

4.1 Management and operation of Business Angel Networks

4.1.1 Funding

A major challenge facing all is the funding of networks as early stage companies have littleavailable cash to pay for services they need. There are good exemplas of government

funded operations eg BBAA in the UK which was subsidised in its early stages of formation

by the UK government. There are examples of Business Angel Networks seekingsponsorship to support their networks -e g from banks and other interested parties thatare keen to be involved with early stage companies). Also local governmental andregional organisations who have an interest in developing businesses and early stage

companies.

4.1.2 Management

It is regarded as key to have a network manager who has good entrepreneurialexperience. We were provided with an example from Italy of a network that failed due tothe lack of experience of the network manager.


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The experiences and skills required can are summarised as below:

Broad experience in dealing with Companies and their financial requirements.

Full understanding of types and sources of finance available

A good understanding of what Investors /Lenders look for in a proposition and how

they expect proposals to be presented to them. (Both in writing and verbally).

Experience and Knowledge of business plans and financial projections.

Ability to be able to see challenges and problems with a proposition.

Ability to be able to recognise a good Investor that will bring skills to a company inaddition to cash ; rather than an Investor looking for a Salary who will bring little to

the company other than an initial cash injection. . Confidence to challenge and probe both the Directors looking for investment and

potential Investors Good interpersonal skills ability to get on well with a broad range of clients and

investors (from Inventors with very specialist technical knowledge, but little

commercial experience, to every experienced and wealthy Investors and ventureCapitalists).

Good networking skills (in order to promote the Business Angel Network to Investors,companies, entrepreneurs and intermediaries).

Good level of appropriate contacts to network with (e g Wealthy Investors, Bankers,Accountants, Chambers of Commerce, Incubation units, trade associations,

intermediaries etc.)In order to generate leads for potential Investors and Companiesseeking funding.

Ability and confidence to be able to lead and Chair events workshops and seminarsand speak at public events when required

4.1.3 Provision of services

It was felt a factor key in increasing the chances of Entrepreneurs in obtaining funding is

the running of investment readiness programmes programmes that help entrepreneurs

develop viable business plans, write good plans, and be able to pitch effectively toinvestors. Basically help and support that entrepreneurs need in obtaining investmentcovering all aspects from how the process works, what investors look for in propositions

and how to effectively present proposals.

This was felt to be a key issue identified in feedback from France, Italy and the UK and is

also held up by EBAN and others as being essential.

4.1.4 Recruitment of Angels

Key to an effective network is a good database of serious investors. Quality investors who

are ready willing and able to invest, rather than a large number of poor investors isrequired if Investments are to be made. Investors who are able to bring skills and contacts

are particularly valuable.

Investors fall in to 4 categories:

1) Job seeking:

Investors who have cash to invest , invest money into a company and who wish to beinvolved in the running of the company but who want to take monthly salary from the


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company. Their investment in the business is therefore withdrawn over a period of timeand their benefit can be severally limited unless they are able to quickly add value to the

business. Often such investors have received large pay offs in the form of redundancypayments from large companies. They are used to making decisions by committee and arenot familiar with having to make decisions alone quickly. They can therefore often be a

drain on a business and slow it down.

2) Financial:

Investors who have cash to invest, do not want to be involved in the day to day running ofthe business, but expect periodic reports which they use to monitor progress of the

company in terms of financial outputs and the reaching of agreed milestones. They aregood in that they provide capital but do not always have skills etc to bring to the business.

3) Entrepreneurial

Often regarded as the best type of investor for an early stage growing company. The

investor who has skills, contacts and experience of running a similar business. This type offunding is often referred to as smart money.

These investors are often cashed out entrepreneurs who have developed and built a

business themselves and then sold it. They are accustomed to the challenges of smallbusinesses and are used to having to make decisions independently without large boards

and large resources. They often have good contacts that can help to develop the business,particularly in the area of sales.

4) Altruistic

Investors who have made money and are keen to make investments in order to helpsociety rather than being driven by personal gain. They often are very wealthy and

frequently invest in localities where they had, or have, their business or in towns where

they were brought up. They are attractive to companies as they are keen to developbusinesses to create wealth and jobs and are not so much driven by financial returns,

They are also often happy to be involved in the running of the business.

4.1.5 Angel Syndication

It is felt to be very important to encourage more investment and increase fundingavailable for investment to facilitate the syndication of deals. Syndication can encourage

virgin investors to invest into their first deal investing alongside experienced angels, thusencouraging new investors. It also spreads the risks for investors as they can invest in a

number of deals rather than put all their money into one deal.Syndication is practiced in Italy, France and the UK and other countries. Many networks

encourage syndication and facilitate meetings etc..


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4.2 Financial Tools and Instruments

4.2.1 Guarantees

Guarantees for investors are seen as a way of encouraging new investors into the

industry. Guarantees for investors obviously give them less risk and makes themmore comfortable about investing.

Good examples from France where guarantees are available for early stage

companies from OSEO.

There are other examples in Belgium and Austria.

Feedback from Greek partners was that this would be particularly welcome inGreece.

4.2.2 Co Investment Funds

There are good examples of co investment funds available in the UK and Italy. Some funds

are privately funded, others publicly funded. Such funds invest alongside Angel Investorswho bring good skills to the companies and carry out extensive due diligence. Co

Investment funds leverage up Business Angels funds that are frequently limited. By usingCo Investment funds the skills and experience and contacts of the Angels can be brought

to more deals. Co Investment funds generally Invest on the same terms as the Angel

Investors.

4.3 Promotion and awareness raising of Business Angel Activity

The promotion and awareness raising of Business angel Activity is key to the

establishment of investor networks and Business Angel NetworksThe benefits of a healthy investment market are seen as key to wealth and job creation,

certainly in the establishment of businesses, and for the funding of growing companieswhere bank finance is often not available.

From Feed back we received and research conducted it is seen as important that thebenefit and activities are promoted nationally by such organisations as British BusinessAngels Association and France angels and IBAN. Also activities should be promotes locally

and regionally by interested parties such as Universities, Chambers of commerce, and withBusiness Support organisations

4.4 Public Policy

Public policy has a very significant effect on the market and activity. In the UK there has

been a great deal of emphasis placed on the importance of private sector Investment andBusiness angel activity for many years. There is also evidence in other counties where

measures have been introduced to encourage this activity. Measures such as raising

awareness through government campaigns and funding for organisations that promote theIndustry: funding to assist the establishment of Business Angel Network, and tax

incentives to give Investors incentives to invest. These include tax breaks on investment


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where tax can immediately reclaimed and reductions in capital gains tax for profits madeon qualifying investments. Many however regard this as the icing on the cake and no

replacement for a good investment opportunity. It can however encourage investment intoa marginal proposition.


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Appendix I: Country feedback information

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