Both the volume and value of angel investment targeting Western European companies announced in February declined to 12 deals worth EUR 86 million, according to Zephyr, the M&A database published by Bureau van Dijk.
It is worth noting there are still eight days until the end of the month and as such, enough deals could be signed off between now and then to see February improve on both fronts, following an impressive result in January. The first month of the year is traditionally a slower month for M&A dealmaking when compared to December; however, this does not appear to be the case for angel investment as January reached 40 deals worth EUR 206 million, compared to 33 deals valued at EUR 167 million in December 2019. This pattern has been seen a number of times over recent years: deals worth EUR 197 million were recorded in December 2018, compared to EUR 318 million in January 2019, (December 2017: EUR 142 million; January 2018: EUR 253 million) and (December 2016: EUR 86 million; January 2017: EUR 137 million), among others.
Of the 12 angel investment deals targeting Western Europe announced in the month under review, nine had a known value and targeted a range of different countries, including Finland, Germany, the UK, Italy, Sweden and Belgium. The largest of these involved Finnish cloud-based open-source database and messaging systems provider Aiven raising EUR 36 million from Olivier Pomel, Earlybird VC Management and Lifeline Ventures Fund Management, among others. This was followed by a EUR 20 million funding round by German cannabis products distributor the Sanity Group, which involved angel investors and other backers like HV Holtzbrinck Ventures Advisor and Atlantic Food Labs. Other companies targeted in February include UK-based bicycle insurance service provider Laka, Italian business travel management firm BizAway and Swedish online video tool Codemill.
Interestingly, one of the 12 deals signed off in the month to date targeted a Turkish company as online shopping platform Andme Yazilim San Tic secured an undisclosed amount of series C funding from Milena Djuicic. This deal particularly stood out as it is one of only 38 angel investment? deals to target a Turkish business announced between 2006 and 2020 so far. The largest of these transactions was worth EUR 34 million and took the form of a series A funding round by online urban logistics and mobile technology platform Getir Perakende Lojistik led by Michael Moritz, Revo Capital Management and the Crankstart Foundation.
Globally, there have been 56 angel investment deals worth EUR 486 million announced in February, with eight days still to go until the end of the month. January has started promisingly as 163 deals worth EUR 1,193 million were signed off, compared to 157 deals worth EUR 927 million in December. The largest of these deals was worth EUR 102 million and involved Indian online free education platform operator Sorting Hat Technologies raising cash from Sujeet Kumar, Kalyan Krishnamurthy and General Atlantic, among other investors. Of these deals, the largest to involve a Western European target placed third.
In conclusion, angel investment in Western Europe during January was up when compared to December. If this is any indication on how February will end, the opening two months of 2020 could have a positive impact on Q1 2020 results. However, it is still too early to establish how things are likely to shape up across the remainder of the year.