October 29, 2018
Finland-based IT company targeted by angel investors in October
Angel investment targeting companies based in Western Europe remained robust in Q3 2018 despite declining quarter-on-quarter, according to Zephyr, the M&A database published by Bureau van Dijk. In total, there were 147 deals worth an aggregate EUR 678 million announced in Q3, which represents a decrease of 26 per cent by volume and 15 per cent by value from 199 deals worth EUR 799 million in Q2. However, value in the three months under review improved on a 12-month comparison (Q3 2017: EUR 544 million) and from Q1 2018 when EUR 662 million-worth of deals were recorded. In fact, value for Q3 was higher than the majority of other previous third-quarters; Q3 2016: EUR 288 million, Q3 2015: EUR 715 million, Q3 2014: EUR 132 million and Q3 2013: EUR 112 million.
There have been 15 deals worth a combined EUR 90 million announced so far in October, with, eight days still to go until the end of the month. While October has some way to go before reaching the EUR 174 million recorded in September or the EUR 182 million notched up in October 2017, it has already exceeded September 2017, when EUR 82 million-worth of deals were announced, and is close to passing the EUR 96 million notched up in August of this year.
Two angel investment deals with Western European targets were worth more than EUR 10 million this month, the largest of which involved Spanish online travel booking business TravelPerk raising EUR 38 million from backers such as Spark Capital Partners and Sunstone Capital, as well as individuals Yuri Milner and Tom Stafford. German-based online presentation and content collaboration software provider, Pitch Software, received EUR 17 million from Index Venture Management and BY Capital Management, as well as Andrew Wilkinson, Olivier Pomel, Frank Thelen, Eric Yuan and Koen Bok.
Other businesses to feature in October’s angel investment deals were France-based Skello, Italy’s Milkman, Spain’s Blooming Experience, UK-headquartered Lexoo and Teckel Medical, also of Spain.
Interestingly, one deal featured a company based in Finland as information technology security software developer HoxHunt raised EUR 3 million from Risto Siilasmaa, Dawn Capital and Icebreaker Fund Management. This deal was one of 206 angel investment transactions with a Finnish target to be announced since the start of 2006. The largest of those was worth EUR 30 million and involved online investment information search engine AlphaSense receiving cash from individual investors such as Tom Glocer, as well as Triangle Peak Partners, Tribecca Venture Partners and Quantum Strategic Partners in 2016. Among the top private equity investors in Finland-based angel investment deals were True Venture Management, EQT Ventures and Index Ventures. Businesses such as earth observation data collection satellite ICEYE, mobile phone food delivery platform Wolt Enterprises and mobile application games developers Armada Interactive and Next Games were targeted in the most valuable angel investment deals in Finland in recent years.
Globally, 449 angel investment deals worth EUR 2,657 million were announced in Q3 2018, a decrease from 530 deals worth EUR 3,205 million in Q2 and 571 deals worth EUR 3,623 million in Q3 2017. On a monthly-basis, value looks set to decline for the fourth consecutive month in October, unless a small number of large angel investment deals are announced in the next eight days. There have so far been 51 deals worth EUR 213 million announced in October. Value is yet to reach the 2018-high of EUR 1,510 million, which was recorded in June, with value declining in each consecutive month since then, reaching EUR 990 million in July, EUR 878 million in August and EUR 789 million in September. The largest deal signed off in the four weeks under review globally involved US-based wool shoes manufacturer Allbirds raising EUR 43 million from Mark Vadon, Fidelity Management, T Rowe Price Group and Tiger Global Management. China-based online car sharing platform Beijing Togo Technology, Spanish online travel booking group TravelPerk and Chinese online-to-office small micro-business supply chain financial services platform Shenzhen Qianhai Linklogis Financial Services, among others, also featured in the top global deals by value.
In conclusion, global angel investment in October does not look likely to exceed other previous monthly and quarterly periods; however, just a small number of sizeable investments could change the course of the month, as we have seen in the past. That being said, Western European value has not been completely stripped away as Q3 2018 surpassed Q1 and every quarter of 2017.