43pc of female angel investors eye up exits next year

Forty-three percent of female angel investors are eyeing up exits from their investee companies in the next 12 months, according to the Halo Business Angel Network (HBAN).

The survey carried out by HBAN – an initiative of Enterprise Ireland, InterTradeIreland and Invest Northern Ireland – amongst angel investors across the island of Ireland, found that some 83pc of female angels are particularly interested in getting involved with start-ups working in the medtech industry.

At the moment, 67pc of female investors have investments in this sector.

“Business angel investing is still a predominantly male environment, but it doesn’t have to be”

The study found that on average female angels exit with a 2.5X return on investment.

Almost three quarters (71pc) of female investors expect to keep shares in investee companies for three to five years.

HBAN’s research also found that 57pc of female business angels plan to invest up to €50,000 in the next 12 months, while 29pc expect to invest between €50,000 and €75,000 during the same period.

What women angel invetors want

Blonde-haired woman in grey jacket.

Faye Walsh Droulliard, member of HBAN’s Bloom Equity syndicate.

The research also found that 83pc of female investors consider the commitment and motivation of founders to be an important factor when making decisions around investment. Two thirds (67pc), meanwhile, consider the management and leadership competence of the founders to be key.

“I joined HBAN two years ago, having been part of a couple of female investor networks for a number of years,” said Faye Walsh Droulliard, member of HBAN’s Bloom Equity syndicate.

“So far, I have invested in seven companies and two syndicated funds. For me, it’s about making an impact and supporting social change via entrepreneurship, innovation and diverse funding models. Angel investment is one of the ways in which I can do this and I can’t stress how important it is for more women to become investors. As with anything – and as studies have shown – the more diversity there is in business, the more successful the outcomes and that applies to angel investing, too.”

Niamh Sterling, investment consultant, HBAN, said that women investors don’t just offer financial support; they bring in-depth knowledge and expertise, as well as a different perspective – and that’s invaluable for start-up organisations.

“Unfortunately, business angel investing is still a predominantly male environment, but it doesn’t have to be. As more and more women take on senior roles across all industries, they have so much knowledge they can share with entrepreneurs working in a similar space. It is not only rewarding for the women themselves, but it also benefits our start-up economy by giving business owners a more diverse range of viewpoints that will help them scale,” said Sterling

HBAN is hosting an event to encourage and educate women about being more active as angel investors. The ‘Investing Together’ masterclass will take place at 5.30pm on Wednesday, 20 November at Mason Hayes & Curran, Barrow Street, Dublin 4. Aimed at investors, existing HBAN members and those interesting in becoming an investors, the event will explore the benefits of angel investment.

It will also include a panel discussion involving new and experienced investors who will be sharing their experiences with innovative start-ups, as well as the role of HBAN in identifying investment opportunities. Register for the event here.

Written by John Kennedy (john.kennedy3@boi.com)

Published: 7 November, 2019