A total of 21 angel investment deals worth an aggregate EUR 47 million targeting companies based in Western Europe have been announced in September 2020 to date, compared to 31 deals valued at a combined EUR 74 million for the same 20-day period in August, according to Zephyr, the M&A database published by Bureau van Dijk.
In all, 47 deals totalling EUR 145 million were recorded for the whole of August, which represents the lowest volume and value since December 2019 (40) and March 2020 (EUR 139 million), respectively. August is traditionally a quieter month as investors put the brakes on dealmaking during the holiday month. In spite of the global coronavirus pandemic resulting in worldwide lockdowns and negatively impacting industries, angels still have the appetite to invest. Zephyr shows angel investment targeting Western Europe in Q2 2020 was the tenth-highest by volume and the sixth-largest by value for a quarter on record. In all, 184 deals totalling EUR 793 million were announced in Q2 2020, up from 177 investments worth EUR 665 million in Q1 2020. In Q3 2020 to date, 137 deals valued at EUR 574 million have been announced, though there is still some time until the end of the month in which more high value deals may be announced.
Targets based in the UK accounted for Western Europe’s top four angel investment deals by value in in September to date. Artificial intelligence-based contractual law automation software developer ThoughtRiver attracted the largest investment after completing a series A financing round worth EUR 8 million. Interestingly, 15 of the 21 deals announced in September to date targeted the computer software sector. Targets based in Germany, Switzerland and Italy featured more than once in the month’s 21 deals, while companies based in Sweden, the Netherlands, Denmark, Ireland, and Luxembourg were targeted in one deal eacg.
Cocoonut is the only Luxembourg-based company to have been targeted this month: the co-living housing manager secured EUR 110,000 from angel investors that included Vincent Bechet, Jean-Nicolas Montrieux, Jeremy Charoy and Laurent Rouach. The startup designs, rents and manages co-living houses and buildings focused on people settling in a new city. It is one of only two deals targeting a company based in Luxembourg to have been announced in the year so far; the other features online asset management software-as-a-service provider Next Gate Tech securing funding from MiddleGame Ventures and Expon Capital, EEBIC Ventures and angel investors from Yeast SC and Be Angels.
In a wider context, 93 angel investments worth EUR 396 million have been announced globally in September 2020 to date, while the value of global angel investment dealmaking in August was driven up to EUR 2,406 million, representing one of the highest on record, due to one deal worth more than EUR 1,000 million. Conversely, volume failed to sustain month-on-month growth and fell back to the lowest level since August 2019 (173 deals). In all, 508 deals totalling EUR 3,979 million have been announced worldwide in Q3 2020 so far. Those deals targeting Western Europe over the latest quarter account for 27 per cent of global volume and 14 per cent of value. ThoughtRiver, having been targeted in the largest angel investment, placed 13th globally, whereas the largest deal announced globally featured Beijing Networkbench completing a series C funding round worth EUR 49 million.
The volume and value of angel investment globally and targeting Western Europe will always fluctuate and the first three quarters of 2020 to date are no different, although the impact of the coronavirus is putting its own spin on the figures. Angel investors continue to invest in startups, but the question remains whether Covid-19 will negatively impact their ability to do so during what remains of 2020 and to what extent the pandemic will affect the total capital they have on hand.