Connecting start-ups with investors. That is the mission of BeAngels, the Belgian platform for start-up investments. For more than 20 years, the organization has guided and helped young companies move forward during their development phase. This is now more than ever necessary. This is because the investment market is tense and different than before.
“The investors today are much more selective, but also more passionate. They want to invest, but in a start-up that will make a real difference and have a major impact in terms of mobility, health, and access to finance. It is an investment in stocks, people become shareholders in the company. The money is there, but it is more difficult for start-ups to find it”, says Claire Munck, CEO of BeAngels.
Energy prices
The energy crisis caused by the war in Ukraine also causes many problems for young companies. “We notice that start-ups that have not sufficiently anticipated the crisis and the need for financing are experiencing difficulties. The current economic climate and the scarcity of materials undoubtedly create a lot of problems for start-ups. They don’t have enough cash flow. Consumers are also not always able to afford the higher prices. They have become much more cautious because of rising energy prices,” said Muck.
According to Munck, there are consequences for start-up companies that have not anticipated sufficiently. “Often they focus on their product or service and forget that they are presenting to investors who are evaluating an investment opportunity.”
‘Early stage financing’
BeAngels offers an alternative to traditional players such as banks, venture capitalists, and national or regional support organizations. It has already invested more than 60 million euros in 380 companies in more than 400 investment rounds. BeAngels, now active in Brussels, does not only want to expand to the Flemish market. The aim is to become a key player in early-stage financing in the European market.”
According to Munck, there are still many opportunities for innovative start-ups in Belgium and the Netherlands. “There is a lot of creativity and a high level of innovation. We have a young generation of entrepreneurs who are very creative and are not afraid to take risks, even after the Covid crisis. Everything has changed in a short time. We see that start-ups today have much more maturity than they did 20 years ago. They are better equipped. They are much more strategic and better structured. They also work together much more. Their innovation and entrepreneurship will play an important role in overcoming the crisis. These are all good profiles to start a business. We also notice that start-ups can already show results.”
Key player
The total European market for early-stage investments has great potential and is estimated at more than 13 billion euros, with business angel activities accounting for approximately 60 percent of the total market. BeAngel attracted more than 100 new investors in 2021, carried out 65 fundraising activities, and almost doubled the amounts invested – from 4.8 to 7.3 million euros. In addition, investments were made through the tax shelter for start-ups. The three main sectors in which the platform invests are the ICT, health, and industrial sector.
“We are a key player in early-stage financing and present ourselves in the financing market as a national player with European ambitions. We are continuing to expand the branches to the rest of Europe. This concerns partnerships or offices. A number of major steps have already been taken beyond the national borders.”
Internationalization
For example, the Luxembourg office of BeAngels was opened at the end of 2021 and a first Franco-Belgian investment group is being created in Northern France and Picardy Wallonia. Through the partnership that BeAngels concluded with Verve Ventures two years ago, 23 investments were successfully concluded throughout Europe in 2021.
“This way we can offer more financing options to young companies and more investment opportunities to our members”, Munck continues. “We not only provide financial support, expertise and guidance to starting entrepreneurs, but we also do the same for starting investors who receive coaching from the BeAngels Academy.”
Jobs
People who want to invest can become a member of BeAngels. “For example, people who want to start as an investor. But also investors who want to join a group in order to benefit from the collective intelligence of the members. They can join BeAngels and choose the investment formula that matches their profile.”
An example of an investment in an innovative Belgian start-up, according to Muck is Ethernetics, which wants to decarbonize the internet. “It is not only about financial support for young Belgian companies, but also about creating value and jobs,” emphasizes Munck. “For example, the starters financed by our business angels have already added more than 472 million euros in value to the Belgian economy over the past two decades (source: Inoopa data research). The companies we have invested in employ more than 1,200 people.”
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