When a startup applies to FiBAN deal flow, be it the common deal flow or Nordic Angel Program by FiBAN, all startups go through a basic screening process: first they are checked by the FiBAN office, and then the ones who meet the certain criterias, go through to angel investors. In pre-screening, the FiBAN office checks that basic requirements are met before angel investors see the cases. “It’s really a matter of timing. A company might just be too early for angels, or already past the angel funding stage“, Amel Gaily, deal flow manager, explains. “Angel investing is still a pretty local business. That’s why all companies that apply to either FiBAN deal flow process or Nordic Angel Program need to have strong links to the New Nordic area”, continues Reetta Ilo, international affairs manager.
As verticals, internet/web services, business services and software dominate. But as for industry sectors, edutech, fintech, and healthtech are the clear top 3:
It might come as a surprise, that there were only 56 gaming companies and a only single one from maritime.
Average round size
In FiBAN deal flow in 2018, the average ask was 440 000€ per round. Note, this is the ask, not necessarily the eventual investment size. According to FiBAN’s statistics in 2017 the median angel round size was 200 000€. So we shall see if they meet in 2018.
Valuation, the biggest discussion point, and the biggest reason why negotiations fail between angels and startups. According to FiBAN statistics, 47% of the investments made were closed with a smaller valuation than the original ask, and 53% with the proposed. However, in some cases the valuation stayed the same, while the investment ask changes. The struggle is so real: for investors, startups, and for the parties working with the data.
The average valuation at time of ask in 2018 was 2,4MEUR.
In a nutshell: the only right valuation is the one where money exchanges owners. A rule of thumb for both investors and startups would be to not get too caught up with the valuation.
FiBAN is embracing cross-border syndication through various methods: one of them being the Nordic Angel Program. Startups from all around the New Nordic area (the Nordics and Baltics) are treated equally, and even encouraged to apply to our deal flow. Doing cross-border investments with international angels into foreign companies opens up new markets and potentially new investing channels for local angels, as well.
The most profiles came from Finland - surprise surprise - and second most from Estonia. Another big surprise. The remaining applications were more spread out. In the New Nordics, we have counted startups from Sweden, Norway, Denmark, Iceland, Latvia and Lithuania. We did notice though, that we have seen companies from all continents, excluding Antarctica. Hey, you never know, maybe one day from there as well.
That's all for today folks. Want to learn more details about FiBAN deal flow? Stay tuned for the complete business angel investing statistics coming up in March.
Submit your profile to FiBAN Deal Flow: www.fiban.org/submit
Apply for Nordic Angel Program: www.fiban.org/nap
As anyone working with data knows, master data files are rarely 100% complete. In this analysis utmost care has been taken to ensure accuracy throughout. Still, the results may hold room for slight deviation error.
Text: Amel Gaily, deal flow manager & Reetta Ilo, international affairs manager
Photos: Wasim al-Nasser, communications assistant
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