News and opinions tailored to the interests of the community of early stage investors.
Tuesday, September 22, 2015
Angel Round Sizes and Valuations Rising Says New HALO Report
round sizes and seed stage valuations for angel investments have continued to rise according to a
national survey of angel group investment activity released today. “There has
been a long term trend towards increasing round sizes and valuation in all
geographies. What makes this report unique is, for the first time, we can see
the difference between regions within those trends, and also relative to
industry sectors” says Rob Wiltbank, Vice Chairman of Research for the Angel Resource Institute at Willamette
Highlights of the 2015 Q2 ARI
HALO Report: Geography Edition
·Seed stage valuations have
risen steadily over the last five years to an all-time high of 3.95M
(Median), a 30% increase over 2014.
·Round sizes in deals with only
angel investors have grown from $800K in 2014 to over $1M year to date in 2015.
·All regions across the U.S.
have seen increases in round size in the last 6 quarters. The largest increases
in round sizes were in the Great Plains ($0.2 to $1.1M), Mid-Atlantic ($0.3M to
$1.5M), and Northwest ($0.3M to $1.5M) regions.
·Over the last 5 years,
California consistently completed the most investments, at 19.6% of the total,
with New England (12.7%), and the Great Lakes (12.2%) following closely
·Angel investing activity is equally
distributed across the country when parsed either East and West or North and
South at approximately 50% / 50%.
·Each region has different
industry concentrations. California and New York tend toward Mobile and
Internet, while Texas has completed more investments in Food & Beverage
than any other region. The Great Lakes tend toward Industrial and Healthcare,
while New England and the Southeast maintain a relatively balanced “portfolio”
The ARI 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 innovative data
analyses. The 2015 Q2 ARI HALO Report: Geography Edition data is based on 4,719
deals totaling $7.5B in total rounds including co-investors.The full report can be accessed here.
Angel groups and individual
angel investors interested in including their data in the ARI Halo Report
should contact Katie Hamburg, (425) 330-0952 or firstname.lastname@example.org
Resource Institute at Willamette University 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 on best practices related to the
earliest stages of angel investing and new-venture development.
Willamette University MBA is a leader in early stage investment research and
entrepreneurship. In addition to being the home of the Angel Resource
Institute, Willamette launched the world’s first student run angel investment
fund in 2008. Willamette faculty and researchers published the world’s largest
and most cited study on angel investor returns, Returns to Angel Investors in
Groups (2007), and one of the most widely used textbooks on entrepreneurship,
Effectual Entrepreneurship (2011). They also preform data analysis for the HALO