HBAN business angels have invested median of €200k each in start-ups

Survey finds business angels on average have invested in more than six companies

Trade

John Phelan, HBAN

A survey of business angel investors by Halo Business Angel Network (HBAN) has found that its business angels have invested a median of €200,000 each in start-ups on the island of Ireland.

The survey of 114 business angel investors found that the average angel has invested in 6.3 companies, the majority of which (66%) prefer to invest as part of a syndicate.

HBAN data showed that the industries that attracted the largest number of angel investors in the last 12 months were ICT and fintech; medtech; and life sciences. The survey showed that in the next 12 months, angels will continue their interest in these sectors, while also considering sectors including engineering, manufacturing and electronics (40%); food, beverages and agriculture (31%); and business services (29%). Survey respondents said that they expect to hold shares in investee companies for an average of five-and-a-half years.

Of those surveyed, 32% of investors report to have achieved at least one exit. More than a fifth (22%), meanwhile, are planning their first angel investment.

John Phelan, all-island director, HBAN, said: “Angel investing is high risk, but it can be extremely rewarding and that is why we see business angels investing in multiple start-ups. Internationally, best practice would suggest a minimum of 10 investments in a personal portfolio and our survey shows that while many have already exceeded that, others are well on their way.

“We are delighted to have such a high proportion of first-time angel investors registered with us, which is reflective of the continued growth of the network and the greater interest we are seeing in angel investing.

“One of the primary reasons for this is that angels tend to invest in syndicates, sharing deep domain knowledge across multiple sectors. Those with an interest in investing, and who have industry knowledge that they can impart with start-ups, are realising that they don’t need to be high-net-worth individuals to become angel investors and have a positive impact on the start-up community.

“The survey results also show a strong appetite among investors to back companies operating in high performing sectors. Our MedTech syndicate, based in Galway, has been particularly active recently and we expect this level of activity to increase in the next 12 months.”

HBAN is responsible for the promotion of business angel investment, and a joint initiative of Enterprise Ireland, InterTradeIreland and Invest Northern Ireland.

HBAN will encourage more people to get involved in angel investing at its all-island conference. The event will be streamed on 2 February 2022. Speakers will discuss how impact investing is transforming investor portfolios and the start-up ecosystem, while a series of workshops and talks will help attendees to understand the many rewards of being an angel investor.

More information can be found at www.hban.org/conference.

TechCentral Reporters

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