September angel investment volume already surpasses August

The volume and value of angel investment deals targeting companies based in Western Europe slowed in the traditionally quieter holiday month of August, according to Zephyr, the M&A database published by Bureau van Dijk. In all, 17 deals totaling EUR 112 million were announced over the four weeks, compared to 55 deals worth an aggregate EUR 184 million in July, as investors put the brakes on dealmaking.

Interestingly, the volume of angel investment deals announced in September to date has already surpassed the whole of August, and while value is down month-on-month – and is currently the lowest recorded since August 2016 (EUR 34 million) – there is still time in September for this figure to increase, especially if several more EUR 10 million-plus investments are announced before the end of the month. There have already been three such deals signed off in September to date, with Genenta Science representing the largest angel investment as the Italian gene therapy developer completed a series C funding round worth EUR 13 million that featured participation by Qianzhan Investment Management, Fidim, the Bormioli and Fumagalli families and existing investors, such as Il Club Degli Investitori.

While companies in Italy were targeted in three different deals, the UK was by far and away the main targets of angel investment in September to date. Germany, Denmark and Ireland each featured once in the top deals of the month, with Dublin-based CroiValve standing out in particular. The spin-out from the Trinity Centre for Bioengineering, which has developed a minimally invasive treatment for tricuspid regurgitation, raised an additional EUR 2 million in funding from HBAN MedTech Syndicate, Broadview Ventures, Irrus Investments, University Bridge Fund and SOSV. This followed on from an oversubscribed financing round in March 2019 that, according to the statement at the time, had the largest ever number of HBAN members to contribute to one funding round. Within a global context, Western Europe’s largest angel investment in September to date was only sixth by value. China attracted the highest deal by value as Suzhou Xiancheng Technology secured EUR 91 million via a series B round of funding led by Lenovo’s Legend Capital Management. In all, 62 angel investment deals totaling EUR 332 million have been announced globally in September to date, which is significantly lower than the 124 deals worth EUR 734 million signed off for the whole of August (July: 182 deals; EUR 985 million). With regards to quarterly figures, 368 deals valued at EUR 2,052 million have been in announced in Q3 2019 to date, compared to 478 deals totaling EUR 3,783 million in Q2 2019.

In conclusion, with the traditionally quieter holiday month of August behind them, angel investment targeting companies based in Western Europe should ramp up once again and, hopefully, may continue to diversify away from the traditional destinations of the UK, France and Germany to include more high-value financing rounds in other countries.

© Zephyr