Investing Angels continue to support Colombian entrepreneurs (Translation)
30 June 2010
Bogotá, June 30th 2010. Today, as part of their second Investment Round carried out in Colombia, the leading beverage company in the country, Bavaria S. A., in association with the Interamerican Development Bank - IDB, launched its Investing Angels program. IDB and the Bavaria Foundation will be signing a document to formalize this collaboration, the goal of which being the development of a project called "Bolstering of Angel Investment in Colombia."
The Bavaria Foundation will be charged with the execution of the project at a national level and the IDB's representation in Colombia will be charged with providing technical assistance for optimum performance of the project.
This initiative is an integral part of Bavaria's social responsibility strategy, which, among other things, strives to promote entrepreneurship. Bavaria has been bolstering Columbia's entrepreneurship since 2006 through its Destapa Futuro program, which promotes the consolidation of new and innovative Columbian companies
Karl Lippert, president of Bavaria, had this to say: "First and foremost, Colombia is an entrepreneurial society. It is a place where it is unnecessary to explain the advantages of setting up a business. In fact, according to the Global Entrepreneurship Monitor, Colombia ranks among the top three countries in the world for entrepreneurial drive."
In Colombia, there are two kinds of entrepreneurships: the first being those of local impact, which generate jobs and focus on small or medium markets, locally and geographically distributed within the country. The second kind of entrepreneurship is an innovative project with a high growth potential which is more sophisticated and is expected to earn a greater social and economic return.
Bavaria, through the Destapa Futuro program, has come across both types of entrepreneurships, with those presenting the most complex evolution having the greater potential projection, due to the lack of financial support during the start phase.
It is precisely because Columbia does not have a system in place to provide financial support to burgeoning businesses that Bavaria has decided to build the first Investing Angels Network of Colombia. To that end, Bavaria will be presenting the best projects to an important group of investors who represent a wide swath of the business world.
Through these Investment Rounds, Bavaria hopes to create an environment of trust for investment in rapid growth projects and which will allow entrepreneurs to have access to an innovative form of financing for dynamic entrepreneurship in its early stages. This is taking into account the fact that the first barrier faced by people trying to create a new enterprise is the difficulty of garnering private capital for the development of their business.
Generally, entrepreneurs invest their own resources into the earliest stage of a business, the same as the seed capital provided by Bavaria through Destapa Futuro. Therefore, the great challenge facing innovative projects with growth potential is demonstrating that it is an attractive investment, so that the Angels will provide the necessary capital to sustainable enterprises.
A way to bolster entrepreneurship in Colombia
After the investment round, Bavaria will launch the Emprendimiento Destapa Futuro reality show. Entrepreneurs who start their businesses with the support of Bavaria and participate in this contest are eligible to win the largest prize package in the country, $3.4 billion pesos. This program, conducted by Viena Ruiz, was first broadcast on June 28th, through CM&, with new episodes weekdays at 8:30 p. m., before "Pregunta Yamid."
Notes to the editor:
Profile of an Investing Angel:
- Successful entrepreneurs/businessmen, who aside from supplying financial support, provide business experience and contact networks for the new company in which they invest, which is known as "smart capital".
- Generally in a range around 40 to 70 years of age, with graduate degrees, and experience in company management, and their creation or expansion in international markets
- The have liquid assets available for investment in amounts equal or exceeding US $100.000.
- They commonly invest between US $25.000 and US $200.000, per project, in the early development stages of the companies.
- They wish to become involved in the project without assuming a managerial role.
- They appreciate the role of entrepreneurs and are interested in supporting their efforts.
- They show a fundamental interest in the entrepreneur's capability.
- They invest in projects which are geographically nearby, so they can take an active role in monitoring their investments.
- They seek out businesses with high growth potential, which, through support for management and the necessary information on related markets, can multiply the value of the company.
- Even though they hope for annual returns of 40% more than their initial investment, their primary evaluation metrics are achieving equilibrium, how long it takes for their investment to be returned, and the amount by which their investment is multiplied.
- They dedicate time to entrepreneurship issues such as improvement of the business model and negotiations. Additionally, they are interested in materializing their investments.
- Their contribution is a key element for a company to surpass what is known as the "valley of death," in terms of financing and expertise. That said, this figure of the Investing Angel, due to its relative size, is still the weakest link of the entrepreneurial system.
- They help to promote the economy's growth and to create of more qualified jobs. They are the primary source of financing for entrepreneurs in the early stages of developing a new company.
Bavaria S. A. es la mayor compañía de bebidas de Colombia. Sus marcas Águila, Águila Light, Club Colombia, Cola & Pola, Costeña, Costeñita, Peroni, Pilsen, Póker, Redd´s y Pony Malta son líderes en Colombia en sus respectivas categorías de bebidas.
Para información adicional, por favor contactar a:
GERENTE DE COMUNICACIONES
Juan David Lee Aguirre
Tel. 57 - 1 - 638 9290
Bogotá, D. C.
This SABMiller subsidiary news release has been translated from its local market language to English language for publication on www.sabmiller.com. We have attempted to provide an accu-rate translation of the original material but due to the difficulties of translation slight differences may exist.
Note, the news release was first published in its local market on [30/06/2010].