The 140+ members of TechAngels, the largest network of angel investors in Romania, made total aggregate investments worth EUR 2.92 million in 2023. The figure is roughly half of that registered in 2022, namely some EUR 6 million, but in line with the European and global trends.

Of the total, slightly over EUR 1.85 million was invested in H2 2023, up 73% compared to H1, when investments stood at about EUR 1 billion. The growth in the second half of the year was also driven by an increase in the participation of TechAngels foreign and expatriate members.

“We are seeing a recovery of the investment volumes in the second half of 2023, which indicates that TechAngels investors are adjusting to the uncertainties in the macroeconomic environment. The number of those who decided to invest has been constant, with 25% of the investors being active each half year and 36% for the year as a whole. It is a good sign that more than half of the investments went to new startups and that investment intention is increasing,” said Marius Istrate, Chairman of the Board of TechAngels.

“The amounts planned for investment in 2024, according to the members’ statements, are 25% higher than last year, and the percentage of those who plan to be active is around 50%,” he added.

In the second half of 2023, 12.5% of all TechAngels members invested up to EUR 25,000, 6.5% invested between EUR 25,000 and EUR 100,000, 2% between EUR 100,000 and EUR 150,000, and 1.5% more than EUR 200,000.

Throughout the year, the TechAngels members screened more than 250 startups and had pitch meetings with 94. The investments were made either directly through investment platforms or through syndications alongside other angel investor networks, according to the press release.

Marius Istrate commented: “The startups that received investments in 2023 are, almost without exception, DeepTech, AI, Machine Learning startups. From the perspective of the sectors addressed, the startups we looked at were widely diverse, with a focus on B2B – automation, productivity and streamlining for companies in various industries, from HORECA to IT and industrial manufacturing. Education and health ranked second and third, respectively, among the top issues addressed by the startups we met last year, followed by mobility/transport and responsible resource use – from reusing clothing to reducing waste in production processes, to mileage and fuel efficiency.”

The list also included B2C startups focused on segments such as active living/sports, entertainment- music, arts, and so on.

This year, TechAngels members plan to continue to actively support the development of the Romanian tech ecosystem, both with investments and with professional expertise and experience.

“We believe that now is the best time in Romania to launch tech startups despite the macroeconomic uncertainties. Even if we still have work to do on our mindset, even if institutions and companies here are yet to accept tech startups with the same openness as in Western Europe or the United States, Romanian entrepreneurs can launch straightaway global companies. They now have access to more expertise for scaling, the community is broader, we are closer to the critical mass needed for accelerated growth,” Istrate said.

TechAngels is an open group of private investors seeking to support the development of Romanian and regional technology startups, with more than 140 members who also provide mentorship and advice to the selected startups. 

TechAngels’ portfolio so far includes over 240 startups. The group’s investments in the local startup ecosystem have amounted to EUR 43 million over the last 10 years.

irina.marica@romania-insider.com

(Photo source: TechAngels)