Luc Colebunders and Jan Lagast ready for road show “investing from the comfort of your couch”

Luc and Jan are ready for the series of events under the heading “Investing from the comfort of your couch”. The content is all set:

  • The difference between capital investment and stake investment
  • The possibilities offered by the current legislative framework
  • What you should pay attention to when you study concrete proposals
  • What are the factors that make a company successful?

The first events have already been scheduled

  • 14/4 at Participium in Zottegem
  • 19/5 in the new co-working space in Knokke
  • 26/5 in Ghent in a former church that, thanks to crowdfunding, was converted into a meeting center

On 19/5 and 26/5 Luc Colebunders outlines the legal framework for investors

Luc Colebunders is wealth manager and financial advisor of ActiveCapital. He is also the chairman of the Belgian crowdfunding association. As a result of these different functions, he has a good knowledge of the legal framework for investing in companies for all budgets.

“For every budget, there is a law”, is one of his statements. You can find out exactly how this works during the two following events: “investing from the comfort of your couch”:

  • 19/5 in Knokke
  • 26/5 in Ghent

The tilted organization at the time of emperor Augustus

And man created God (dutch titles is En de mens schiep God) by Selina O’Grady is a very interesting book. One chapter is on the metamorphosis of Rome at the time of Emperor Augustus, who managed to unite an incredibly diverse empire by introducing an emperor cult. He was clearly not a micromanager. Some interesting fragments:

“By the end of the first century BC, the empire was a patchwork of semi-autonomous cities run by wealthy, local landlords. They were brought together loosely in provinces under Roman rule. The Roman imperial administration was in fact minimal, even towards the end of the second century after Christ. There was only one Roman governor per four hundred thousand inhabitants. ”

“Partly in order to limit the power of the senators, Augustus deliberately strengthened the equestrian class by number and status and incorporated it more and more into the government of the empire. […] Augustus now appointed many Knights, especially in posts concerning the essential task of taxation. ”

“The leasing of tax collection had been a way for the Roman aristocracy and local elites to finance the costs of public life and their own system of patronage. […] Augustus appointed knights for tax collection, with the strict instructions ‘not to claim more money than the fixed amount’. These tax collectors, and even the chivalric governors whom he appointed, were given a fixed salary for the first time. The Augustan regime could thus claim that it liberated the provinces from the worst excesses of Roman exploitation. By allowing them to benefit from their own prosperity, the pax Augusta gave the provinces an incentive to remain loyal to the central authority. ”

This is very similar to a tilted organization, giving teams and people a final responsibility to be dedicated in order to give customers a concrete added value and stimulating them to achieve strong performances within the team, by offering the opportunity to reap the benefits of their work.

This book is highly recommended. ISBN 9789059778436

Content “Investing from the comfort of your couch” exceeded expectations

“Yes, Jan, it was very interesting! The evening has exceeded our expectations”, Luc Bouquet from the start-up Fikz wrote us the day after the session on investing from the comfort of your couch. The duo session Jan Lagast and Luc Colebunders from ActiveCapital and CroFun gave at a Participium proved successful.

Luc started with indicating which legal possibilities exist nowadays in order to invest in a company without having to be at the helm. His statement: “There is a law for every budget now”. Jan Lagast made the remark that investing always involves risks. After 25 years of experience in realizing growth in B2B companies, Lagast knows how important it is to pay attention to some success factors.

The combination of possibilities, warning and success factors, turned out to be a successful blend for our mixed audience of investors, entrepreneurs and bankers. The networking went on merrily into the night.

Participium will soon repeat this event in Knokke and Ghent. They are still looking for other locations where they could be welcomed as a guest speaker duo. For more information, email jan.lagast@participium.eu.

Watch out for the poppies

It is great that there are so many start-ups and incubators. Starting and doing business is hip. Yes! Enterprising Flanders will wake up after all. It is relatively easy to build an app, put together a powerpoint (or prezi), win awards and even make it into the news with a fun project.

Unfortunately, we also see too many poppy flowers blossoming: companies with a business model that can hardly stand a little adversity from a larger party for example, that suddenly comes up with a comparable innovation and pulls the rug out from under the startup with an extensive customer base, a solid reputation and sufficient resources to last a few years. Let’s hope that the very short flowering period of these poppies does not dampen the enthusiasm of entrepreneurs, journalists, investors, friends and family. And for those who still can: check the SWOT analysis and remember the business model!

The same challenge applies for Participium. For each company they evaluate different business models that scale quickly enough in order to be able to become a serious company with European opportunities in the short term. At the same time, we are looking for a business model that is also reasonably solid and can withstand a collision. Do we have a monopoly on the truth? Obviously not. That is why, for every project, we surround ourselves with a few external observers that help us remove the blind spots. We also regularly ask our financiers to think about the companies we want to build. And then we stay down to earth and keep our fingers crossed for our projects to survive the first storms.

“We are going to build companies” (Trends)

Journalist Benny Debruyne articulated it perfectly in his article on Participium in Trends of 7 April 2016: “We are going to build companies”. That is exactly what Participium wants to do: create a business, create a lean start-up company around it, let that company quickly do business with its first customers and then achieve years of growth with a solid capital injection. The role of Participium is not that of an investor, but that of an inventor, entrepreneur and manager.

Francis Dams (left on the photo) is a lecturer at the University of Antwerp, and made Participium realize that, for the early stage, they need a typical entrepreneur such as Jan Lagast (partner at Forte, center of the photo) with a lean team. The years of growth on the other hand are best supported by an experienced manager such as Herman Demarbaix (former top director in the petroleum sector, right on the photo).

Every company gets its own manager, also known by Participium as business leader. They call it that way because they want that person to focus on generating business and coaching the team to develop that business and to take good care of customers. The business leaders of Participium are typically 45+ people who are tired of the corporate environment and yet do not want to take the risk to develop their own company alone. Participium offers them a team consisting of a visionary inventor, a financial planner, a business analyst and a back-office operations manager. Each of them providing support services. They also find a company that has traction in the market already, so they don’t have to (re) invent the wheel themselves. They will find a team that searches together for the capital they need in order for that first nucleus to grow into a beautiful pan-European growth company.

Many financial parties answer “team-team-team” to the question “what do you think are the three most important success factors for the future of a company”. The bringing of this very team is the strength of Participium. Special thanks to Jo Libeer for this reminder.

Click here and read the full article Benny Debryne wrote about Participium in Trends of April 7, 2016.

Omar Mohout states that the Belgian venture capital is doing well

Omar Mohout gave us an excellent summary of the capital investments in start-ups and scale-ups during the first quarter of 2016. He concludes that Belgium started the year pretty well. Good news, in times of a shrinking venture capital market in the US.

A few highlights:

  • Belgium is ranked fifth in Europe as far as the number of deals are concerned.
  • Belgium is ranked ninth in Europe for raised capital.
  • Belgium has the highest number of B2B companies in Europe (75%). The countries where B2B is more dominant than B2C are: Austria, Denmark, Finland, France and UK. In the Netherlands this is 38%. Ireland and Italy are the most B2C oriented with 29%.
  • The top 5 sectors of Europe are a replica of the Belgian startup ecosystem with one exception: manufacturing is ranked in the Belgian top 5 (in the European ranking this is security)
  • The average year of foundation for Belgian technology companies that raise at least $1M is 2011, the same as France, UK, Switzerland and Sweden.
  • Belgium is ranked 15th in Europe with an average amount raised of €3.2M. Sweden takes the first place, then Ireland and then Switzerland. The European average is €10M.

Some interesting European trends:

  • Some countries that did well last year appear to stagnate. Spain for example (€ 500M raised in 2015) has € 27M for Q1 (Source: Novobrief.com).
  • Europe performs better in Q1 2016 than in Q1 2015 (Source: tech.eu).
  • Sweden takes the first place in raised capital thanks to a single company: Spotify. This company raised money 2 x this quarter: $ 500M in January and $ 1B in March.
  • The UK leaving France and Germany far behind in raised capital. France is doing better. Germany is lagging behind in a number of deals.
  • Northern Europe is doing very well. All Scandinavian countries, except for Norway, are ranked in the top 10 of both deals as raised amounts.

Mohout also focuses on Belgium:

  • The total of the capital raised in Q1 is € 55M (of which € 51M consists of deals above $ 1M). 47% of the capital is for Flanders.
  • The € 1M club consists of 15 members: Unified Post, Real Impact Analytics, Rombit, Epigan, Smappee, Icometrix, EMASphere, Molecubes, MyMicroInvest, PieSync, Approplan, Pronoia, Twikey, Intix & Social Karma. Nine of these are from Flanders.
  • LRM, Internet Attitude and Pamica (Michel Akkermans) were the most active investors. With regard to crowdfunding, MyMicroInvest was the most active. They had, among others, a very successful campaign. In half of the deals business angels where involved.
  • Walloon Brabant is on the 1st place for raising capital, with Brussels and Antwerp respectively on place 2 and 3. Together, these 3 provinces account for 71% of all venture capital in Belgium.
  • For cities, the first place goes to Brussels, then Antwerp and La Hulpe. Ghent and Hasselt follow on 4 and 5. Together, these 5 cities accounted for 76% of all venture capital.