November 24, 2017
French software firm among November’s targets of angel investment
Although there are still nine days to go until the end of November at the time of writing, the value of angel investments with European targets announced during the month has already surpassed October’s figure. This is despite the fact that volume is considerably lower over the same timeframe. So far there have been 17 deals worth a combined EUR 294 million announced during November, compared to the EUR 163 million injected across 45 transactions in October. A similar trend was evident in a year-on-year comparison as volume declined against an increase in value when compared to the 43 deals worth EUR 113 million announced in November 2016.
November 2017’s value result is particularly impressive in comparison with other recent months; although it has been slightly surpassed by September 2017’s EUR 295 million, it was higher than any other month since September 2015, when deals worth EUR 305 million were announced. Given that the month has yet to come to a conclusion the result is particularly notable and gives hope that a record high could be on the cards once December comes around.
Given that volume was down both month-on-month and year-on-year in November, value has undoubtedly been boosted by a smaller number of high value deals. This is borne out by the fact that the month’s most valuable transaction was worth EUR 241 million and accounted for 82 per cent of total dealmaking in November. That transaction involved UK-headquartered money transfer facilities platform operator TransferWise, which received a EUR 241 million injection from investors including Virgin founder Sir Richard Branson. Other participants include Institutional Venture Partners and Old Mutual Global Investors (UK), who led the round, as well as Sapphire Ventures and AH Capital Management, among others.
November’s result has been reflected in an impressive 2017 to date. Although there is still over a month to go until the end of the year, it has already attracted more European angel investment than the whole of 2016. In fact, the only quarter which did not post more value than its 2016 equivalent was Q2, when deals worth EUR 252 million were announced.
Among the companies targeted by angel investors in November was France-headquartered Addworking, which offers online employee management Software-as-a-Service (SaaS). The company closed a EUR 600,000 round of funding on 6th November. Investors included BPI Groupe, Edenred Capital Partners and Affelou, as well as Phillippe Bertinchamps, Armand de Milleville and Gerard Tresanini. Proceeds of the funding round have been earmarked for accelerating the company’s development and integrating new product features. Addworking was founded by Julien Pérona and Charles Lienart in 2016 and offers corporate clients a software platform designed to enable multi-channel operational management of non-salaried employees. According to the company, the technology has been designed to better respond to an increase in this type of working structure.
It is not surprising to see another software company attract attention from angel investors as tech businesses are traditionally frequently targeted by angels. 2017 has been no exception in this regard as there have been 351 such deals involving angels targeting software publishers announced worldwide since the beginning of January. The most valuable of these transactions involved an Italian company as Satispay received just under EUR 27 million via a Series C round from Sella Ventures, Shark Bites and Iccrea Banca, as well as Jonathan Weiner, Ray Iglesias, Nicola Carbonari and Giuseppe Donagemma. This was closely followed by a EYR 26 million Chinese injection as mobile automobile retailer information application provider Hangzhou Yiqi Qingchen Information and Technology received investment from LBI, Northern Light Venture Capital Development and Weiguang Chuangtou back in August. Other countries to feature among the largest software publishing angel investments of 2017 to date include the US, the UK and Israel.
In summary, 2017 has been a good year for angel investment in Western Europe and November ensured that value remained impressive as we move towards 2018. A number of larger investments have had a significant impact and many will be hoping this high level of activity can be sustained into next year and beyond.