FiBAN Monthly: Digging through the data
May 06, 2021
In April, it was time for our annual statistics launch when we revealed the early-stage investing figures from 2020, together with the Finnish Venture Capital Association. As FiBAN has collected data systematically for over a decade, the set we are now working with is unique even globally. Data serves as a tool for us to look at how the angel investing scene in Finland has developed over the years, and make educated guesses as to where it may be headed.
2020 was a year to remember in many ways, and the investment statistics for 2020 followed suit. Business angels invested a total of €36 million, down from the peak in 2019, yet showing a long-term growth trend. The number of companies receiving funding was 321, of which over half, a new record, were portfolio companies. All median key figures stayed on a similar level compared to previous years. What made records in 2020 was the number of exits, which were up 68% from 2019. The distribution of returns continued to be in line with the distribution seen typically.
Although on the whole valuations seemed stable compared to previous years, one sector had an astonishing growth in valuations: the median valuations for Health and Medtech companies, the most popular sector overall in 2020, went up 94% in 2020. The median valuations for all sectors combined went down 10%. Another interesting finding was the difference in valuations between different syndicates. Unsurprisingly those rounds with angels and VCs had a three times higher valuation than those with an angel-only syndicate.
When looking at the future, nothing is certain, but let’s venture a few guesses. The number of international angel investors investing in Finland will rise, assuming that the market conditions stay good. Currently, at FiBAN we have over 20 different nationalities represented, investing in Finnish startups. The rise in other early-stage investors will bring activity, competition, exit, and co-invest opportunities with them.
The median round sizes for angel investments in Finland will increase from roughly 200 000 euros to 400 000 euros inching closer to the level of our Nordic peers. Drivers for this could be new efforts from the public sector, such as the creation of a business angel co-investment fund, larger syndicates, and more early-stage investors. This last one, larger median round sizes, is more of a necessity than a conjecture.
FiBAN Monthly is a monthly blog series launched in October 2020. A new post will be shared each month, alternating between FiBAN Chair of the Board Reima Linnanvirta and yours truly. In case you missed Reima’s letter from April, you can read it here.
Managing Director, FiBAN