TechAngels – More than EUR 1 million funding for the tech ecosystem, appetite for investments to double in H2 2023
- EUR 1,013,000 invested in H1 2023, 33% of the H1 2022 investments
- Average investment per angel investor was EUR 13,000
- 13% of the investments went into new startups in the individual portfolios, 22% were follow-on investments, 65% of the investors did not invest at all during H1
- Investment intentions to double in H2 vs. H1 among TechAngels members
- 254 startups undergoing screening, 71 startups enrolled for pitches.
- More than 25% of the reviewed solutions target the business segment; Health Tech and productivity solutions rank second and third among the pitched ideas.
Bucharest, September 6th, 2023 – The members of TechAngels, the largest network of angel investors in Romania, invested EUR 1,013,000 in the first half of 2023, a third of the investments made in H1 2022. Caution was the key word for investors worldwide, with Europe seeing both lower investment volumes (down 60.7%) and fewer financing deals closed.
The volatile macroeconomic context has led to both investors and founders hitting pause in the fundraising round process. Some of the startups have shifted towards bridge rounds and announced their intention to launch rounds late this year or next year, while investors have focused on backing existing portfolio companies.
13% of TechAngels investors funded startups they did not have in their portfolio, 22% opted for follow-on investments, 65% did not invest at all in H1, and only 11% plan not to invest at all this year.
“Our internal evaluation shows the willingness of TechAngels investors to double the amounts invested by the end of the year, with more than EUR 2 million indicated by group members to be available resources, if promising projects are identified. We are witnessing a shift to a new phase: we are seeing macroeconomic conditions somewhat stabilizing, inflation is decelerating, and energy prices are showing some stability. The ecosystem is seeing acclimation to uncertainty and there is potential for leaving the stand-by stance behind,” underlines Marius Istrate, President, TechAngels.
Tech startups continue being committed to solving a wide range of problems that basically address every aspect of life. In the first half of 2023, business solutions dominated in terms of volume, with more than 25% of the evaluated startups offering new ways for companies to streamline their operations: whether it’s logistics (fast delivery, ensuring efficient supply chains) or tools for collaboration within teams and for employees. Marketing and user experience customization solutions ranked third in the segment of business ideas pitched by startups in the first half of this year.
Healthcare and B2C solutions, pertaining to personal life management options (finance, activities, fashion), each accounted for around 10% of the total solutions undergoing screening, ranking second and third in the overall classification of pitches. An overall increased focus on sustainability was noticeable during this period, both in terms of business and individual environmental footprint (such as fashion, choice of various food products, durables, etc.).
“This year, several startups that were already part of some of our members’ portfolios have reaped the benefits of investment appetite by successfully convincing new investors within our group. Generally, there is some seasonality to this, as investors typically assess their personal portfolios towards the end of the year and make investment decisions more quickly. This and signs of economic thawing make us optimistic about the second half of the year. However, it is key for startups to submit strong pitches, to document and demonstrate the need for the pitched solution, and to have a realistic business plan,” says Marius Istrate.
At TechAngels, investors make decisions to invest individually, but also team up for investment alliances when the pitched projects appeal to multiple investors. The money invested following individual decisions by the TechAngels members are completed with the investors’ business experience, who are only too willing to assist the team by lending a hand when able and needed. Most of the time, when multiple investors are involved, they are represented by a lead investor, which simplifies the communication between the start-up founders and the investors.
“This joint effort by founders and TechAngels members further leads to enhanced access to funding both from other angel investors and larger, venture capital or private equity firms,” Marius Istrate explains.
TechAngels will continue helping startups in need of advice and resources, enhance interaction among its members to support the progress of investors, new group members or those who want to make the move to angel investing, and leverage its membership in the regional and European ecosystem by offering access to the most useful markets, investors, experiences and knowledge.