Business Angel Networks and Investments (Swedish Private Equity & Venture Capital Association (SVCA))

Summary

• Around 70,000 companies are founded each year in Sweden, but only a fraction are suitable for private equity and business angel investments.p.2
• A total of 193 active business angels participated in the 2013 survey out of 250 contacted from Connect Sweden's network, representing a 77% response rate.p.14
• In 2013, Connect Sweden facilitated growth processes that helped portfolio businesses raise over SEK 81 million in capital across 276 accelerator projects.p.12
• IT & Communication is the most preferred sector with 75% angel interest, followed closely by Healthcare at 66% and Cleantech at 66%.p.18
• Among investors who reported on exits, 58% have executed at least one exit, with 64% of those exits returning a profit.p.21

Key insights

1. Exactly 85% of the surveyed business angels have made at least one investment, leaving 15% as virgin angels who have not yet invested.p.15
2. Business angels who have realized an exit made an average of 12 investments, three times more than the 4 investments averaged by angels with no exits.p.21
3. A high proportion of angels (69%) have syndicated investments in the past, and 90% express interest in co-investing with others.p.22
4. Overwhelmingly, 97% of business angels invest via a company vehicle, whereas only 49% make direct investments as private individuals.p.24
5. When assessing early-stage deals, 51% of angels consider the individual entrepreneur to be among the top three most critical evaluation factors.p.25
6. Connect Väst achieves a 70% female representation among its business angels, largely driven by its dedicated IDA network.p.15