Why Do Investors Invest? Exits!
The primary objective of angel investing is to realise a return on investment of between 5X and 10X, which rewards the investors for investing at the earlier and most risky stage of the business. The sooner the exit the more attractive angel investing becomes as an asset class within an investor's wealth portfolio. The average European trend has been an exit within 5-7 yrs.
Outlined below are a selection of HBAN Investee companies that have delivered an investor exit/return. The time to realise those returns has ranged from 3 years at the low end to 9 years at the high end. The return multiples for these investments vary to from 2X to 10X with the median return being 5.4X
Mark Little, a journalist for more than 20 years, (Foreign Affairs Correspondent, Washington Correspondent and news anchor for RTE) left RTE in December 2009 to set up the social news agency, Storyful, which extracts news from the social media noise. HBAN was instrumental in arranging angel funding for Storyful, when it raised its initial round of €430k, leading to subsequent rounds totaling €3m. Mark presented to the angels in September 2010 and the HBAN business angel investor made a return of seven times his investment when Storyful was sold to Rupert Murdoch’s News Corp for €18m in December 2013.
In 2011, HBAN introduced energy demand software company, Activation Energy to one of its registered business angels with a strong background in the energy sector. The HBAN business angel worked closely with the founder Patrick Liddy to realise his exit strategy. Activation Energy was acquired by Nasdaq listed EnerNOC in February 2014 with the business angel realising a significant return on his investment. “The team over at HBAN understood what industries matched my domain knowledge and to which I would add value. One of the first businesses they linked me up with was Activation Energy which turned out to be a perfect fit and fortunately for all a profitable exit opportunity!” Aidan McDonnell- Investor in Activation Energy.
Microsemi Corporation, a leading provider of semiconductor solutions, acquired Cork based Mingoa in September 2014, a leading provider of semiconductor IP for hardware accelerated Ethernet OAM and embedded tests. This was a successful exit for investors including members of the HBAN Boole Syndicate.
Music technology, heavy weight Spotify acquired Soundwave, known as the “watercooler” for music fans, by both tracking what you listen to, what your friends listen to, and then using algorithms to suggest music based on that while also providing a messaging platform to iscuss your playlists in Jan 2016 after presenting to the HBAN investors in 2014.
Alongside an equity investment from Enterprise Ireland, Phorest raised €700,000 from 12 HBAN angel investors in two funding rounds in 2011 and 2013. In June 2018 Phorest completed a third round of investment, receiving €20 million from US investment firm Susquehanna Growth Equity (SGE). As a result, eight of the original HBAN investors were bought out, each receiving an average return amounting to 10 times their initial investment.