Despite the fact that businesses relating to the internet or apps are more easily scalable than traditional sectors, analysis of investment decisions (Figure 2) show that business angels invest in all sectors as long as the investment criteria are met.

SECTOR 2012 2013 2014 2015 2016
ICT 47% 32%↓ 13%↓ 26%↑ –
Health Care/Med Tech 8% 8% 5%↓ 9% –
Creative Industries 6% 11%↑ 3%↓ 4% –
Retail and Distribution 5% 9% 5% 3% –
Finance and Business Services 5% 9% 4% 6% –
Media and Marketing 4% 4% 3% 4% –
Logistics and Transport 3% 4% 1% 2% –
Mobile 10% 3%↓ 21%↑ 7%↓ –
Environment and Clean Techology 6% 6% 14%↑ 9%↑ 10%
Biotech and Life Sciences 1% 10% 3% 2% 3%
Energy 2% 6% 1% 2% –
Other / Unknown 5% 8% 27% 11% 4%
Unknow 1% 13% 3% –

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Table 1. Sector distribution of business angel investments (EBAN, FiBAN)

A target company does not need to be a new business; rather existing companies and companies seeking new growth (restart or start-again) are also generating more and more interest. A company of this kind which is attractive to investors is typically one in a situation where business has stagnated for years until a spark of growth has arisen in the company. The spark can have been ignited by a multitude of causes: a new product, demand on the international market, a generation or ownership change.

The turnover of a company seeking investment is typically below one million euros, but the company aims at aggressive growth.

Angel investing

  1. The average investment period is over eight years.
  2. Half of investments fail, one in ten covers other investments made.
  3. A typical investment amount is between €10, 000 and €50,000 per investor per round; maximum €1 million.
  4. The valuation of a company being invested in is typically below €1.2 million.
  5. The stake held by investors usually varies between 10 and 30 per cent.
  6. Emotional factors affect an investment.

A target company does not need to be a new business; rather existing companies and companies seeking new growth (restart or start-again) are also generating more and more interest. A company of this kind which is attractive to investors is typically one in a situation where business has stagnated for years until a spark of growth has arisen in the company. The spark can have been ignited by a multitude of causes: a new product, demand on the international market, a generation or ownership change.

The turnover of a company seeking investment is typically below one million euros, but the company aims at aggressive growth.