To: Carlos Moedas, Commissioner for research, innovation and Science European Commission

Subject: BAE input to European Innovation Council

Brussels, 24 February 2016

Dear Commissioner Moedas,
Following our interesting meeting on 29 October, where we discussed several relevant topics
for the entrepreneurial and early stage ecosystem, and your recent call for ideas on the
European Innovation Council we are pleased to send you a summary of the main points raised
during our discussion.
1) Leveraging on the Business Angels and other Early Stage investors in improving the
impact of H2020 research projects:
Since the very initial Framework programs (i.e. the Value Programme during the 3rd
Framework Program in the early 90s for research & innovation) exploitation of results and
reduction of the innovation gaps has been one of the key objectives.
Today, Horizon 2020 has undoubtedly made further progresses along this road but still Europe
lags behind.
Giving a stronger role to early stage investors such as the Business Angels inside a
research project, to bring a clear market and financial perspective to the table early on in the
lifetime of an innovative project, accordingly to our experience would likely increase the
success rate of exploitation activities.
This could be encouraged at the level of evaluation of projects to be funded, especially
favoring the participation of investors as partners in each and every project, eventually
giving a higher score to those project involving these innovation players.
2) The importance of lowering the barriers for European startups to expand within
Europe:
Europe is becoming everyday richer of hubs for new innovation and startups. However, when
the new companies manage to have some initial results they tend to go to the US and
increasingly towards the emerging markets, often moving most of their activities to these
geographies. One of the key reasons is that for a small team entering Europe is still seen as
entering 28 countries with 28 different legislation and cultures. Lowering these barriers is
Business Angels Europe vzw/asbl
The European Confederation for Angel Investing
Avenue des Arts 12
1210 Brussels
www.businessangelseurope.com

therefore an imperative if these companies are to increasingly consider Europe as the truly
single largest market in the world with 0,5 billion people and the highest GDP in the world.
Business angels willing to syndicate investments cross border should not only face no fiscal
consequence as they are today, but instead should be encouraged to do this more and more,
thus creating entry points for commercial and business contacts in the various countries and
substantially lowering intra communitarian barriers.
Similarly financial instruments favoring cross border investing and with diffuse network
structures should be particularly encouraged, again allowing start-ups to tap into financial
support but especially market and business resources and contacts.
These two topics are examples of a more holistic approach to the disruptive innovation and the
go to market challenges that the Council that you are launching we believe is going to address.
We hope are our input will be useful to be discussed in the context of the Innovation Council.
In parallel, we will respond to the public consultation launched on the subject on 17 February
2016.
We will be very pleased to make further contributions in articulation with other representatives
of the innovation and entrepreneurial ecosystem and remain at your disposal to participate in
any expert group and/or event that you consider relevant.
Yours sincerely

Philippe Gluntz
President
Business Angels Europe (BAE)

Business Angels Europe vzw/asbl

The European Confederation for Angel Investing
Avenue des Arts 12
1210 Brussels
www.businessangelseurope.com