‘Like a dating agency for investors and companies’ — we chat angel investing with John Phelan from HBAN
The National Director of Halo Business Angel Network (HBAN) talks to us about trends in angel investing, the impact of the pandemic and setting up an international group in London.
Tell us about HBAN and what they do?
HBAN is a network of business angel investors that are grouped into investment groups or syndicates based on region of investor or sector of interest. We have nine investment groups on the island of Ireland and three international groups (New York, London and Singapore) with a pilot in Dubai.
The HBAN team has access to top quality early stage dealflow, screening the companies and curating the dealflow to meet the preferences of each investment group. Our remit is to support early-stage high potential tech companies that are internationally scalable and ultimately grow/stimulate the economic wealth and employment for Ireland Inc. The HBAN programme comprises of regular pitching events, an investor platform with pre- screened deals and education and training in the area of investment at seed stage into businesses. We look at our services as something like a dating agency for investors and companies — matchmaking suitable parties with a planned divorce of the exit!
What are the main priorities and goals in your role?
*Create a sustainable and professional business angel network
*Close deals (60 plus per annum)
*Close capital investment into those deals (€15-€20m per annum)
*Raise the profile and awareness of business angel activity
*Educate the market about business angels and share international best practice
*Increase the number of active female investors
What are the major trends in angel investing at the moment and what has been the impact of the pandemic?
This investment space has held its own throughout the pandemic and we have maintained the number of companies receiving investment (59 was a slight drop) and grown the amount of capital going into these companies (€14.5million) in 2020. We continue to present companies that have greater perceived opportunity in the new ‘Covid-19’ business reality and/or are successfully trading through the crisis.
Along with the rest of the global investment community, the risk profile of investments has gone down, meaning there is less appetite for pre-revenue companies. With the right policies and exciting new pre-revenue opportunities coming down the track we hope investors will see the potential to go early, at the appropriate valuation, recognising the risk and bringing their own experience and network to the table to accelerate success.
Tell us about diaspora groups and the international reach that HBAN has?
We started with two international groups in New York (partnering with Digital Irish Angels) and Singapore in 2016 and had relative success closing six deals in the first two years between both these groups. In 2018, Harry McDermott (former HBAN London Chair) expressed interest in running a HBAN London group which took off straight away and after three years, we have over 30 members, eight deals and €1.4million invested. We also have a pilot in Dubai which has been received very well.
Why set up an international group in London?
Initially it was proximity for the HBAN team and pitching companies with physical events coupled with the UK market being the most accessible for most Irish start-ups. There was also the diaspora-effect which meant we were welcomed and had good traction from this group with support from LIBS and IIBN.
Register for our next webinar
If you’re interested in learning more about angel investing, join our next webinar in partnership with HBAN (Halo Business Angel Network), taking place on Thursday 15th April at 12.30pm, which will discuss angel investing and the opportunities for new business ventures and entrepreneurs in 2021. Click here for details on the panellists and how to register for this event.
Halo Business Angel Network is responsible for the development of business angel activity and angel syndicates on the island of Ireland. HBAN provides qualified deal flow to investors who want to be part of the journey in creating great Irish companies, scaling globally and making returns to their shareholders. To find out more about HBAN, visit their website.
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