Manufacturing & Supply Chain

HBAN, the all-island organisation responsible for the promotion of business angel investment and a joint initiative between Enterprise Ireland, InterTradeIreland and Invest Northern Ireland, is celebrating more than €100 million invested in start-ups on the island of Ireland. HBAN has been helping start-ups access funding for growth since 2007.

Since then, angel investment has continued to accelerate as the number of active angels, and companies pitching for investment, grows. The announcement marks a doubling of the €50 million milestone reached four years ago.

The increasing figures reflect the quality of companies pitching to HBAN angel investors. Each company is assessed and mentored by HBAN consultants to ensure they are investor-ready before pitching. Approximately 150 companies pitch to investors each year, with one-in-three receiving funding as a result. This represents approximately 50 deals per year.

Recent research carried out by HBAN among the angel investor community found that the average business angel has invested in multiple companies. In a survey of angel investors across the island of Ireland, HBAN found that the average angel has invested in 4.7 companies. The survey also found that two-thirds usually invest as part of a syndicate.

John Phelan, all-island director, HBAN, said: “We are delighted to have reached the €100 million milestone just four years after reaching €50 million angel investment across the island of Ireland. It reflects the energetic start-up culture across our cities and regions.

“Our research shows that the business angel community is very active, too. It is a buoyant, exciting community and can be a very rewarding experience. With syndicates located and engaged across the island, and internationally in New York and London, our HBAN angels are supporting local economies and entrepreneurship. As co-funders of the HBAN programme, Enterprise Ireland, InterTradeIreland and Invest Northern Ireland are instrumental in enabling this and ensuring more start-ups in Ireland receive crucial funding.

“This milestone also demonstrates the quality of companies pitching to our angel investors. We know what our angels look for in an investee company and it’s our job to ensure we find those companies and give them the advice that will help them secure critical investment. By securing angel investment, those businesses are then more likely to leverage additional funding from other sources and that is very powerful. You can see that in the €100 million invested through HBAN Angels a further €170M was invested by others, for a total of €270 million.”

Minister for Business, Enterprise, and Innovation, Heather Humphreys, said: “I am delighted at the announcement that funding from HBAN angel investors in start-ups has surpassed the €100 million mark for the island of Ireland. The role of the Halo Business Angel Network in providing essential finance and support to early stage companies that are setting out on their paths to growth cannot be overestimated. HBAN is a vital ingredient in Ireland’s start-up ecosystem, both as a vital source of finance but also as a fount of knowledge, skills, expertise and mentoring support for companies in their critical early stages.

“The increases in funding by angel investors into companies throughout the island is a positive signal regarding the growth trajectory of start-ups in the coming years.”

Kevin Sherry, Executive Director, Global Business Development, Enterprise Ireland, said: “Building a strong funding ecosystem at each stage of the funding journey for start-ups is of critical importance to the success of Enterprise Ireland client companies.The availability of Angel funding at the early stages of a company’s development provides both essential capital and hugely valuable industry experience to support companies through this early phase of growth. Enterprise Ireland is very encouraged by the strong take up of the funding over the last decade amongst the Angel community and can already see the positive impact firsthand through the accelerated growth and development of Irish businesses.

“In partnership with InterTradeIreland and Invest Northern Ireland, Enterprise Ireland looks forward to continuing to support the Halo Business Angel Network.”

HBAN-backed companies which have benefited from angel investment recently include:

We Are Paradoxx

Based in Belfast, We Are Paradoxx is a socially and environmentally conscious haircare brand. The company closed its first major round of investment this year, raising a total of £1.5M, with £580K coming from angels in HBAN Ulster.

Buymie

Buymie is Ireland’s first on-demand grocery e-commerce platform. In January, Lidl announced that it had selected Buymie to provide home deliveries to its customers in Dublin. In the same month, Buymie raised €545K from HBAN angel investors in the Bloom Equity syndicate.

Signum Surgical

The Galway company’s BioHealx®  technology addresses a colorectal condition called anal fistula. In 2016, it raised €2.6M in a Series A funding round, including €1M from HBAN’s MedTech Syndicate. The company also secured €3.6M in grant funding in December 2018.

Deciphex

Using AI to accelerate the delivery of pathology services and improve accuracy of test results, Deciphex raised €2.3M in a funding round in April this year, of which €490K came from HBAN’s Irrus Investments.

CAPTION:

Pictured announcing HBAN’s €100M angel investment milestone are (L-R): William McCulla, director of corporate finance and property solutions, Invest NI; John Phelan, all-island director, HBAN; Margaret Hearty, director of programmes & business services, InterTradeIreland; and Kevin Sherry, executive director, Enterprise Ireland.