Angel Groups Invest More Per Deal, Stay
Halo Report Reveals Angel Group
Investment Trends for Q1 2013
Kansas City, MO,
Santa Clara, CA, New York City, July 18,
2013- The Angel Resource Institute
(ARI), Silicon Valley
Bank (SVB) and CB
Insights released the Q1 2013 Halo
Report today, a national survey of angel group investment
activity, which finds round sizes are trending up to a median of
$680K per deal, pre-money valuations remain stable at $2.5 million and
most angel investment happens in angel groups' home states.
angel investment continues to be dispersed nationwide, and in the first
quarter entrepreneurs in the Southwest region of the country received a
slightly larger share of dollars than startups in California, for the
first time. The sectors getting
funding remain concentrated in
Internet, healthcare and mobile, with 72% of completed Q1 deals in
"The market for angel investing is solid:
pre-money valuations are stable, round sizes are trending up, and
market activity is spread widely throughout the U.S.," said Rob
Wiltbank, Vice Chairman of Research, Angel Resource Institute. "The key
trends over the last few years have been syndication and broader
geographic distribution of investment; both of which suggest that
attractive new ventures are finding places to start all over the
Halo Report Q1 2013
angel round sizes reached another five quarter high at $680K in Q1 2013
up from $550K a year ago and $650K last quarter. When angel groups
co-invest with other types of investors, the median round size is
higher at $1.5M. Seventy-five percent of angel deals are
Pre-money valuations in
early stage companies remain steady at $2.5M.
For the first time the Halo Report
compares the location of angel groups with the location of their
investments. Eighty-one percent of deals were completed in the angel
groups' home state over the past 12 months.
Together, Internet, healthcare and mobile
companies completed 72% of angel group deals and received 64% of angel
group dollars. All three sectors closed more deals than one year ago
and healthcare companies received a slightly larger share of angel
group dollars than in Q1 2012.
Most Active Angel
Based on total deals, the most active angel groups
in Q1 are (alphabetic order) Alliance of Angels, DesertAngels, Golden
Seeds, New York Angels, Sand Hill Angels and St. Louis Arch
Angel groups that invested the most per deal in the last
12 months are (alphabetic order) Golden Angels Investors, Golden
Seeds, Houston Angel Network, JumpStart New Jersey Angel Network,
Nashville Capital Network, Oregon Angel Fund and Tech Coast
Angel group investment deals
are more evenly distributed across the US than in years past.
Seventy-three percent of angel group deals are now done outside
California and New England, although 30% of dollars are invested in
these regions. The Southwest region edged out California for the
first time, with 18.1% share of angel group dollars. Year over year,
companies in the Great Plains region and New York saw the largest
increase in angel group deals. Declines of equal proportion are in New
England and the Southeast over the same time period.
Halo Report includes aggregate analysis of investment activity by
angels and angel groups and highlights trends in round sizes,
location and industry preferences. The data is collected via survey
and aggregation of public data using CB Insights innovative data
analyses. The Q1 2013 Halo Report data is based on 207 deals
totaling $222 million dollars invested. The transaction details are
available in the CB Insights subscription
database for users to review and analyze themselves. Academics may
also access some of the data through ARI.
Angel groups and
individual angel investors interested in including their data in the
Halo Report should contact Sarah Dickey, Vice President of research
for ARI, for details. She can be reached at 913-894-4700 and
The Angel Resource
Institute (ARI) is a charitable organization devoted to
education, mentoring and research in the field of angel investing, a
growing driver of our entrepreneurial economy. ARI was founded by the
Ewing Marion Kauffman Foundation. The programs of ARI include
educational workshops and seminars, research projects and reports,
and information about angel investing for the general public. ARI
is affiliated with the Angel Capital Association, the professional
association of angel groups in North America. More information is
available at www.angelresourceinstitute.org.
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treasury management, corporate investment and international banking
services to its clients worldwide through 27 US offices and six
international operations. (Nasdaq: SIVB) www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the
commercial banking operation of SVB Financial Group. Banking services
are provided by Silicon Valley Bank, a member of the FDIC and the
Federal Reserve System. SVB Financial Group is also a member of the
Federal Reserve System.
CB Insights is a
National Science Foundation-backed data-as-a-service firm that collects
information on private companies and their investors and acquirers.
CB Insights data and technology is used by firms to make better
marketing, procurement, lending, acquisition and equity investment
decisions and to gather data-driven market and competitive intelligence.
The firm's data is regularly cited by leading media publications
including the New York Times, Forbes, Bloomberg
BusinessWeek and Fast Company among others. For more
information, visit http://www.cbinsights.com.
Vice President of
Angel Resource Institute
Silicon Valley Bank
CEO and Co-Founder