The Angel Resource Institute (ARI),
Silicon Valley Bank (SVB) and CB Insights this
week released the Q3 2013 Halo
Report, a national survey of angel group investment activity, finding median
round sizes down to $520K per deal, healthcare round sizes up, and a larger
share of deals and investment dollars going to mobile companies. Together
Internet, healthcare and mobile companies received 81% of dollars invested by
angel groups in Q3.
The
Great Lakes region in the US saw the largest increase in share of deals, and
the biggest drop in share of dollars over Q2 2013. California-based angel groups
retained the lead in the number of deals, and New England-based angels continued
to invest the most during the quarter. US angel investment continues to be
dispersed nationwide and, of the 10 most active angel groups in the quarter, Hyde
Park Angels, Life Science Angels and Wisconsin Investment Partners are new to
the list.
“The big three – Internet, healthcare
and mobile – continue to dominate the interest of angel groups, and we noticed
a particular spike this year for healthcare companies,” said Rob Wiltbank, Vice
Chairman of Research, Angel Resource Institute. “Despite the downward
trend in round sizes overall and the drop in total dollars into healthcare for
the quarter, we noticed a significant jump in full year round sizes for the
healthcare industry – a trend we’ll continue to watch.”
Halo Report Q3
2013 Highlights
Round Sizes: Median angel
round sizes were still down for the second consecutive quarter at $520K,
following a peak of $700K in Q1 2013 and three prior quarters of growth. When
angel groups co-invest with other types of investors, the median round size is still
trending higher to $2M in Q3 from $1.95M in Q2 and $1.4M in Q1.
Valuations: The most
consistent finding in the report is median pre-money valuations in early-stage
companies, which remain steady at $2.5M for the year.
Most Active
Angel Groups: Based
on total deals, the 10 most active angel groups in Q3 were (alphabetic order) Alliance
of Angels, Golden Seeds, Houston Angel Network, Hyde Park Angels, Investors’
Circle, Launchpad, Life Science Angels, Sand Hill Angels, Tech Coast Angels,
and Wisconsin Investment Partners.
Locations: Seventy-four
percent of deals were completed in the angel groups’ home state in Q3,
remaining consistent over the year.
Geography: Approximately
one-third of all angel group deals consistently occur in California and New
England, and the share of dollars invested in these regions increased over the
prior quarter and year over year to 44% in Q3. The Great Lakes region saw the
biggest gain in share of deals, and the biggest drop in share of dollars in the
quarter with 14% of all deals and 5.3% of the dollars.
Sectors: Together,
Internet, healthcare and mobile companies comprised an even higher percentage
of angel group deals (76%) and received 81% of angel group dollars, an increase
from Q2 and the prior year. Mobile companies saw the largest increase over
other sectors in share of deals and dollars in Q3.
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 Q3 2013 Halo Report data is
based on 278 deals totaling $445 million in total rounds including co-investors.
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.
Sponsors
of the Report are the Angel Resource Institute (ARI), a charitable
organization devoted to education, mentoring and research in the field of angel
investing; Silicon
Valley Bank is the premier bank for
technology, life science, cleantech, venture capital, private equity and
premium wine businesses; and CB Insights, a National Science Foundation backed data as a service firm.
For more information see also:
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