Angel investment thriving in Ireland despite Covid, new data shows

HBAN figures show investment up more than 13% in H1 compared with same period in 2019

Individual angels invested an average of €44,000 each in H1 this year, although many invested at €25,000. Photograph: iStock

Individual angels invested an average of €44,000 each in H1 this year, although many invested at €25,000. Photograph: iStock

 

Angel investment has thrived in Ireland despite the ongoing Covid-19 pandemic, new data has shown.

The figures from the Halo Angel Business Network (HBAN) showed total angel investment is up more than 13 per cent in the first half of the year compared with the the same pandemic period in 2019. A total of €8.38 million was invested in Irish start-ups in 2021.

HBAN is responsible for the promotion of business angel investment on the island of Ireland, and is a joint initiative of Enterprise Ireland, InterTradeIreland and Invest Northern Ireland.

It figures also revealed a higher number of start-ups also received funding, increasing from 29 to 37.

Additional funds leveraged as a result of HBAN investments increased by 128 per cent on 2019 figures, reaching €37.9 millionin the first half 2021. The average investment made by angel groups in each round was €324,500, 29 per cent higher than the €251,000 average in 2019.

Individual angels invested an average of €44,000 each, although many invested at €25,000.

Since HBAN was established in 2007, start-ups on the island of Ireland have now raised more than €400 million in funding from HBAN angels and other funding sources that HBAN helped them to leverage.

Spirit of entrepreneuriship

“We are delighted to report that angel investment is growing on the island of Ireland, despite the challenges that the Covid-19 pandemic continues to bring to businesses and investors.

“We have seen previously that times of crisis inspire a spirit of entrepreneurism and the first half of this year is testament to the quality of start-ups that are pitching to our angel investors. To maximise potential returns for our angels, each company is assessed and mentored by our team to ensure that they are investor-ready before pitching,” said John Phelan, all-island director, HBAN.

“Aside from the funding, the increase in angel activity is a good sign for start-ups in Ireland, as angel investors also offer industry-specific guidance and contacts that are so vital for businesses in their early years. Angel investment is also important in helping start-ups to leverage funding from additional sources that they wouldn’t otherwise have access to. We are very excited to pass the €400 million milestone and look forward to reaching half-a-billion in the near future.”