Business Angels are private individuals who invest capital in companies during their early stage of development. In addition, they contribute their know-how or experience in company management and can offer valuable expertise and guidance. Business Angels usually seek active participation in the company in which they invest.
Business Angels can be a substitute for classical bank financing or venture capital which can be difficult to attract at the early stage of a company’s life. They are primarily motivated by return on investment, and Business Angel involvement can often help secure access to venture capital or classical bank loans. The average initial investment by Business Angels ranges between €50,000 and €250,000 individually, or can form syndicates (partnerships with other Business Angels) for investment up to €500,000 and beyond.
Following a pilot initiative, the Halo Business Angel Partnership (HBAP) was formally launched in January 2008. HBAP is a joint initiative between Enterprise Ireland, InterTrade Ireland, and the Irish Business Innovation Centres (“BICs”).
The primary aim of the HBAP Programme is to foster and facilitate Business Angel investment in early-stage companies. This is achieved by matching pre-screened investors with pre-screened investment opportunities in start-up, early stage and developing businesses
The HBAP Programme does not provide funding directly to companies; rather, the Programme facilitates the leverage of the investment of private investor money into early-stage companies, by matching investors with investment opportunities. The following represents the amount of investment that the HBAP Programme has directly facilitated since its establishment in 2008:
- 2008 - €2.285m
- 2009 - €2.782m
- 2010 - €4.026m
- 2011 - €4.802m
- 2012 - €5.207m
A similar level of investment activity is targeted to be reported by the HBAN operators to Enterprise Ireland for 2013.
To date, the total number of companies that have received investment as a result of their involvement in the HBAP Programme reached 96 by 2012.
The peak number of jobs that have been created by companies that received investment under the HBAP Programme since its formal establishment in 2008 to 2012, is 253 based on a sample of 69 of the 96 companies (Source: Forfas Annual Employment Survey). Employment gains of 168 at the end of 2012 were recorded by this sample. The base number of jobs used to calculate employment gains is the number of jobs at the end of the preceding year in which the company received investment.
The peak amount of total exports recorded by companies receiving investments through the HBAP Programme was €14.734m to 2012 based on a sample of 45 of the 96 companies. Based on the same sample, export gains were €12.745m at the end of 2012. The baseline export figures used to calculate export gains are the exports at the end of the preceding year in which the company received the investment.
