TechAngels investments tripled in Q1 2022 year-over-year to reach EUR 2.4 million
- EUR 2.4 million invested in Q1 2022, three times more than in Q1 2021
- 37 startups met in pitches since the start of the year
- There are 220 startups in the aggregate portfolio of TechAngels investors – 94% are Romanian and 6% international startups
- About 40% of the TechAngels investors placed their investments directly into the startups, while the rest chose to mainly invest (more than 50% of the allocated amounts) through platforms
- 65% of the investors say they are more cautious because of the war in Ukraine, and 10% are optimistic about the growth of the startup environment this year
- Angel investor network expanded by 10% vs. end of 2021, up to 128 members
Bucharest, 19 April 2022– Members of TechAngels, the largest network of private investors looking to support the Romanian tech startup ecosystem, invested an aggregate EUR 2.4 million in Q1 2022, three times more than the amount invested Q1 2021. The group met with 37 startups in pitches, and 30% of those startups attended follow-on rounds. Approximately 25% of the teams attending pitches are negotiating funding.
“This year has kicked off with a sound quarter as far as allocated amounts are concerned, but has also seen caution, according to 65% of our members. We have noticed the same trend throughout Europe too, where investments in startups increased 33% year-over-year.* The economic environment at the end of last year, which was marked by inflation and rocketing energy prices, then the crisis in Ukraine, with extensive effects on the economy as well, contributed to uncertainty rising, hence the more cautious stance adopted by some of the investors and even by some of the startups. However, the investment volume was substantial overall, in line with the growth of interest in tech and digitalization solutions in all industries and all facets of life,” says Malin Iulian Stefanescu, President, TechAngels.
Almost 55% of the ideas pitched in Q1 2022 were aimed at digitizing everyday life – healthcare, personal care, sports and leisure management, followed by business solutions (45%) in various areas – from finance, HR, field services, investments, marketing, healthcare services to agriculture. In terms of technical solutions, many projects are SaaS platforms and integrate automations, AI modules, Deep Learning, robotics, low or no code.
The funding raised for the accelerated international development of Tokinomo stands out among the more special projects in Q1 2022. The USD 1.7 million pre-series A funding round, in which TechAngels was in the lead, will be used to scale the shelf marketing robotic solution designed by the Tokinomo team. The project was also joined by Early Games Venture and IPP.
“I believe that this quarter’s results are an indication of the TechAngels community growing stronger and managing to provide resources, even during the rather uncertain periods, to growing startups that need support, know-how, coaching and financial resources to take a leap towards the next growth stage, to scale their business and accelerate their potential. This proves the significance of our network and the diversity in our group, our ability to balance different points of view and funding strategies, besides the diverse expertise available in our group,” says Malin Iulian Stefanescu, President, TechAngels.
The average investment made by the TechAngels members was EUR 20,000, while around one third chose not to invest during the quarter, with some of these being new to the group.
In 2022, the TechAngels association intends to maintain a constant pace in getting in touch with startup founders and teams, to increase the level of involvement and interaction among the group of investors. The plans are to harness the group’s multiple areas of expertise and to foster the exchange of experience and opinions among its members. There will also be opportunities for investors to learn and update afforded by the membership in and access to the European associations to which TechAngels belongs.