June 21, 2019
One Finnish Target Makes Top Deals by Angel Investors in June
There have been 39 angel investment deals worth a combined EUR 94 million targeting companies based in Western Europe announced in May 2019, representing the lowest-recorded value since May 2017 (EUR 68 million), according to Zephyr, the M&A database published by Bureau van Dijk. May, in terms of value, represents a 52 percent decline from EUR 194 million in April and a 67 percent decrease from EUR 303 million in May 2018. Volume also declined, from 52 deals in April 2019 and 73 in May 2018.
Despite there being ten days until the end of this month at the time of writing, June has already recorded 20 deals worth an aggregate EUR 160 million, representing an increase of 70 per cent from last month. This is due to three angel deals being worth more than EUR 20 million each. The largest deal involves UK-based online goods trading platform Depop raising EUR 55 million in its third round of funding from investors such as General Atlantic, HV Holtzbrinck Ventures Advisers and Balderton Capital, as well as angel investor Sebastian Siemiatkowski. This was followed by UK-based flexible commercial diving insurance provider Extracover, trading as Zego, raising EUR 37 million from Target Global, Balderton Capital and Latitude Investment Management, as well as individuals Taavet Hinrikus and Tom Stafford. One other deal exceeded EUR 20 million as Honestica, a French online medical document software provider, raised its second round of funding from Partech Partners, IDInvest Partners and Majycc Esante Invest and business angel syndicate Daphni. Of the 20 deals signed off in June so far, 11 targeted companies based in the UK, three featured companies in France and Spain, while Denmark, the Netherlands, Germany, Italy and Finland were also targeted.
One deal that stood out involved Duuers, a Finland-based proposal creating and managing software-as-a-service provider, raising USD 250,000 from Finnish Business Angels Network. Duuers said this investment enables the company to accelerate its business to the next level. This is one of five angel investment deals targeting companies based in Finland announced in 2019 so far. The largest of these was worth EUR 116 million and involved Wolt Enterprises, an online restaurant and food ordering and delivery mobile application, receiving funding from EQT Ventures, ICONIQ Capital, Highland Europe and angel investor Ilkka Paananen. Other targets included cloud database platform Aiven, indoor environmental quality monitoring software group 720 Degrees and human-directed artificial intelligence chatbots platform provider GetJenny. Investors included Earlybird Venture Capital, Dubai Angel Investors and Business Finland.
In total, 57 angel investment deals worth an aggregate EUR 291 million have been announced globally in the opening 20 days of June, compared to 156 deals worth EUR 896 million in May. June has some way to go to reach the 210 deals worth EUR 1,562 million announced in June 2018. Globally, Q1 2019 is higher than Q1 2018 and in Q2 to date there have been 365 deals worth EUR 2,523 million signed off, with still ten days to go until the end of the month. A small number of high-valued deals could significantly boost global value in Q2 2019 when compared to Q2 2018 (583 deals worth EUR 3,203 million).
To sum up, there is still time for Q2 2019 to record a year-on-year improvement in value; however, Western Europe would need to see more high-valued deals signed off to increase from the EUR 811 million recorded in Q2 2018 (Q2 2019 to date: EUR 448 million). June already represents a month-on-month increase from May’s disappointing result and if a small number of high-valued deals are announced over the next ten days, the value of angel investment in Western Europe could also improve year-on-year.