In collaboration with Silicon Valley Bank (SVB) and CB Insights, Angel
Resource Institute released the 2012 Halo Report, a
national survey of angel group investment activity, as the Angel Capital
Association gears up for its biggest event of the year in San Francisco this
week.
The report shows angel investing for the year
was stable with prior years. Pre money valuations for early-stage companies
remained steady at $2.5M and round sizes were relatively consistent. The
sectors and geographies getting funding are shifting, however, most notably
with mobile and telecom companies gaining share of angel investment deals and
dollars, while healthcare companies are losing share of angel investments. Companies
in the Northwest and the Southwest US are gaining ground on the number of deals
and total investments they receive over companies in California and New
England.
“Angel investors continue to play an important role in
funding startups,” said Rob Wiltbank, Vice Chairman of Research, Angel Resource
Institute. “The steady valuation, growth in investment size, and wide
geographic activity among angel investors is more evidence that angels are a
reliable and a critical part of growing the next generation of great new
companies in this country.”
Wiltbank will present the 2012 Halo Report during the 2013 Angel Capital Association Summit, taking
place April 17-19 in San Francisco. The Summit, with
the theme, “Navigating Change for Angel Success,” is the largest worldwide
gathering of angel investors and will host 600 attendees from 27 countries, 38
states and five Canadian provinces.
One new company in the mobile sector benefitting from
angel investment is GlobeSherpa, based in Portland, Oregon. “We are entirely angel
funded,” said Nat Parker, CEO of GlobeSherpa, a mobile ticketing software
company. “We are disrupting legacy payment systems and ticket machines with
extremely convenient mobile tickets that consumers can purchase and use with
their smart phones. In the process we’re helping transit systems save millions
of dollars and we are able to do this on the backs of our angel investors who
put their trust in us.”
Round Sizes
Median angel round sizes hit a five quarter high at
$690K in Q4 2012 for the second quarter in a row, and ended the year at $600K,
down from $625K in 2011 and up from $500K in 2010. When angel groups co-invest
with other types of investors, the median round size is higher at $1.5M.
Valuations
Pre-money valuations in early stage companies remain
steady at $2.5M for both 2012 and 2011.
Sectors
Mobile and telecom companies gained share of angel
investment deals and dollars in 2012, responsible for 13% of all investment
deals and receiving 14% of angel group dollars, which was more than doubled its
share in 2011. Internet and healthcare companies still receive more than half
of angel group investments, although healthcare investments dropped
significantly from 35% share in 2011 to 27% in 2012.
Startups
Sixty three percent of companies that received angel
group investment had revenue and 44% were follow-on rounds, as opposed to new
investments.
Most Active Angel Groups 2012 – Number of Deals
|
2012/2011 Rank
|
Group
|
Hometown
|
|
1/ New
|
New York Angels
|
New York, NY
|
|
2 /1
|
Tech Coast Angels
|
Southern California
|
|
3 /2
|
Launchpad Venture Group
|
Boston, MA
|
|
4/6
|
Central Texas Angel Network
|
Austin, TX
|
|
5 /5
|
Golden Seeds
|
New York, NY; Boston, MA; San
Francisco, CA
|
|
6 / New
|
Sand Hill Angels
|
Sunnyvale, CA
|
|
7 /9
|
Investors’ Circle
|
National Group
|
|
8 /4
|
Alliance of Angels
|
Seattle, WA
|
|
9 /7
|
CommonAngels
|
Boston, MA
|
|
10 /New
|
Maine Angels
|
Portland, ME
|
Geography
Companies in the Northwest and Southwest regions of
the US grew their share of both angel deals and dollars over 2011. California
and New England continue to see the majority of deals and investments, yet 69%
of angel investment deals are done outside those regions. Share of investments
in California companies dropped from 31% in 2011 to 23% in 2012. Investments in
New York remained flat.
The 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 2012
Halo Report data is based on 783 deals totaling $1.1 billion 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, ARI
Research Director, for details. She can be reached at 913-894-4700 and
sdickey@angelcapitalassociation.org.
**************
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.
Silicon Valley Bank is the
premier bank for technology, life science, cleantech, venture capital, private
equity and premium wine businesses. SVB provides industry knowledge and
connections, financing, treasury management, corporate investment and
international banking services to its clients worldwide through 28 U.S. 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.
