Divine Intervention

Seventh heaven: Irish angel investors turn 700 per cent profit

Many Irish investments are outperforming the industry norms, according to one Angel network.

IRISH ANGEL INVESTORS are reaping the rewards of some savvy investments, with some landing as much as seven times their initial buy-in to Irish tech companies.

New figures released today by the Halo Business Angel Partnership show that some Irish investors are securing many times the standard rate of return that they would expect to achieve, which is usually around 2.5 times their investment.

Investors within the HBAP network put a total of €4.5 million into Irish start ups across 29 different deals in 2013, an increase from the 25 deals brokered the previous year.

The number of investors registering with HBAP has climbed by 12 per cent year on year, with many entrepreneurs who had benefited from investment in earlier rounds now coming on board as angel investors themselves.

Done deals

Network members have invested a total of €25 million across 148 deals since 2007, with an average cash injection of €170,000 per deal.

Headline deals that grabbed the investors seven times the sum they put in include a €430,000 sum put into Mark Little’s Storyful, which was bought out by News Corp in January for €18 million.

20 20 Insights, a loyalty programme and business intelligence developer, also netted its investor a 700 per cent yield.

HBAP national manger John Phelan said: “We see from our portfolio of companies that, on average, revenues have increased 5.6 times since investment and this bodes very well for future performance of angel investments and the return to investors.”

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