Four angel investment deals in Western Europe had a known value in August

The volume of angel investment deals targeting companies based in Western Europe was unchanged month-on-month, despite value declining to 49 deals worth EUR 170 million in July 2019 from 49 deals worth EUR 363 million in June 2019, according to Zephyr, the M&A database published by Bureau van Dijk. Volume and value in July 2019 declined 24 per cent and 60 per cent, respectively, from 63 deals worth an aggregate EUR 422 million announced in July 2018. However, value was not completely stripped away and remained higher than May 2019 and August 2018 over the last 12 months under review.
While there are still ten days to go until the end of August at the time of writing, both the volume and value of angel investment deals in the month to date are significantly lower, with 5 deals worth EUR 15 million signed off so far. The last time value was under EUR 20 million was December 2012 (EUR 18 million) and of the five deals announced in August 2019 to date, four had known values and three targeted companies based in the UK. This included the largest angel investment as Flatfair, a tenancy management platform, raised EUR 10 million from Greg Marsh, Taavet Hinrikus and Jeremy Helbsy, as well as venture capitalists Index Ventures, Revolt Ventures and Advinta. This deal accounts for 67 per cent of total value in August 2019. Taylor & Hart, a UK-based customer-designed diamond jewellery manufacturer, raised just under EUR 4 million in the second-largest deal from Paddy Byng, LauncHub Ventures and Active Private Equity Advisory. One other company based in the UK featured in the five deals with angel activity in Western Europe in August, this involved fitness centre operator Your Zone receiving an undisclosed amount of second-round funding from Mhairi FitzPatrick, Jeremy Taylor and Andy Kay.
The only two other deals announced in the month so far featured fourth-placed Reclamadatos, a Spanish online personal data protection platform, closing its first round of financing worth EUR 100,000 from Alberto Burgueno, Hector Pequerul, business angels, TPartner and Reus Venture Capital SCR-Pyme. The third-largest deal particularly stood out as companies based in Belgium have only been targeted by angel investors in nine separate occasions in 2019 to date. This involved data management software-as-a-service provider Esoptra raising just over EUR 1 million from founders, existing private investors and new private investors. Of the nine deals to target Belgium in 2019 so far, this deal placed fourth behind Endo Tools Therapeutics raising EUR 5 million, Tools4Patients raising EUR 4 million and Osimis raising EUR 2 million.
Globally, angel investors announced 174 deals worth an aggregate EUR 956 million in July 2019, representing a 23 per cent increase by volume and 31 per cent decline by value from 141 deals worth EUR 1,392 million in June 2019. On a 12-month comparison, volume fell 10 per cent, against an 8 per cent decrease by value from 193 deals worth EUR 1,035 million in July 2018. In August so far, 52 angel investment deals worth EUR 325 million have been signed off globally, with six of these exceeding EUR 10 million by value. WebFlow, a US-based no-code web development software-as-a-service provider, raised EUR 64 million from FundersClub, among others, in the largest of these.
In conclusion, while angel investment in Western Europe during Q2 2019 was impressive, Q3 2019 still needs to catch up as 54 deals worth EUR 185 million have been announced so far with just five more weeks until the end of the quarter. The UK continues to be a main target point for angels; however, a small number of high-valued deals and investor interest in other countries could potentially be a turning point for both August and Q3 2019.
© Zephyr