May 25, 2018
Dutch electric power generation firm targeted by angel investors in May
The value of Western European angel investments increased for the second consecutive month in April to 52 deals worth a combined EUR 213 million, according to Zephyr, the M&A database published by Bureau van Dijk. In terms of value, this represents an increase of 55 percent from EUR 137 million month-on-month, while volume rose 11 percent from 47 deals in March 2018. At the time of writing, there have been 31 European angel investment deals worth an aggregate EUR 159 million announced in May, which represents a significant increase by value year-on-year compared to 30 angel investments worth EUR 66 million across Western Europe in April. There are still eight days until the end of the month, and a small number of high valued deals being announced could result in a month-on-month increase in May. In addition, Q2 2018 is on track to be a successful month for investments with participation from angels as 38 deals worth EUR 371 million have been signed off in the quarter so far, there still being around half of the quarter to go. This already represents a 43 percent increase in value on Q2 2017, when EUR 260 million was invested across 161 deals. The increase so far by value against the decline by volume suggests investors favoured single transactions with higher individual values over prolific deal-making.
Angel investment in Western Europe is continuing to look promising for the year ahead as we move further into the second quarter. In the month under review, six deals each worth EUR 10 million, or more, were signed off, together representing 74 percent of total value for the month (EUR 159 million). The largest transaction signed off during the four weeks involved UK-based online management consulting software provider Concentra Analytics raising EUR 47 million in a round of funding which involved Joseph Schull, One Peak Partners, Connected Capital and Partners and City Securities. This was followed by Marcus Nacht, among other undisclosed investors, injecting EUR 22 million into Switzerland-based mobile banking application provider Numbers Personal Finance.
Interestingly, there were a number of different European countries targeted in the top 20 deals by value in May, including Sweden-based Doktorse Nordic, French fitness pass platform Gymlib and Italy’s digital media content group AG Digital Media. One deal that stood out involved a consortium of angel investors such as Daan van der Vorm, the Van Veggel Family and Dinko Valerio raising EUR 2 million in a round of funding for Netherlands-based smart electricity-generating windows manufacturer Physee Group. The company creates the power window, an energy-producing light-tinted window that generates electricity.
This deal was a rare one for angel investors as only 16 transactions involving angels have been announced in the electric power generation sector since the start of 2006. No single deal exceeded EUR 10 million, with the largest worth EUR 9 million and involving Craig Winkler and Jim Bochnowski, together with New Enterprise Associates, among other investors, injecting cash into US solar power energy storage systems manufacturer Terrajoule in 2013.
Globally, angel investment in Q2 2018 is some way from Q1 2018 levels, when EUR 2,635 million was invested across 461 deals. We are over the halfway mark for the second quarter and there have been 209 deals worth a combined EUR 994 million. This is also some way from Q2 2017, when EUR 3,617 million was injected across 500 deals.
In conclusion, May and Q2 2018 are on track to continue the success seen so far this year in terms of angel investment in European companies; however, this comes at the expense of investment involving angel participants on a global scale, which has some catching up to do. There is still time to turn it around, as we have previously seen a small number of significant investments can change the outcome of any timeframe.