The
Halo Report, released today, finds
angel group activity rising with more high-valuation deals closed in 2013 than
the previous year. While median round sizes held steady at $600K per deal, they
were at a three year high when angels co-invested with non-angels. The share of angel investment in Internet, healthcare
and mobile startups continued to increase. Golden Seeds, Tech Coast Angels, and
Houston Angel Network, which is new to the list, were the three most active
angel groups in 2013.
“The
angel investing market is showing early signs of warming up, with co-investment
round sizes and valuations trending upward to three year highs,” said Rob
Wiltbank, Vice Chairman of Research, Angel Resource Institute. “With a
continued progression toward more even distribution of investments nationally,
entrepreneurs throughout the country are likely to find it easier to access
angel investors for critical early stage funding.”
The
largest share of angel deals (19%), with the greatest amount of investment
(20%), continues to occur in California, yet overall deals are becoming more
evenly distributed across the rest of the nation. The dollars invested,
however, remain more concentrated. In
2013, 67% of angel group dollars were invested in the top five out of ten
regions: California, New England, Great Lakes, Mid-Atlantic and the
Southeast. The same five regions
completed 63% of the deals.
Halo
Report 2013 Highlights:
Round
Sizes
Median
angel round sizes remained steady over a three year period and were $600K for
2013. When angel groups co-invest with other types of investors, the median
round size reached $1.7M, which was a three-year high, but fell in Q4 following
an upward trend earlier in the year.
Valuations
The
most consistent finding in the report is median pre-money valuations in early-stage
companies, which remain steady at $2.5M year over year. However, 2013 saw more
high-valuation deals close than 2012, despite the consistent median.
Most
Active Angel Groups
The
ten most active US angel groups were, in order:
Golden
Seeds
Tech
Coast Angels
Houston
Angel Network
Central
Texas Angel Network
Sand
Hill Angels
Launchpad
Venture Group
New
York Angels
Desert
Angels
Investor
Circle
Alliance
of Angels
Geography
Year
over year, only New York and the Mid-Atlantic region gained a larger share of
both deals and dollars in 2013. By the same measure, New England and the
Northwest produced a smaller share of deals and invested dollars than they had
the prior year. California and the Great Lakes led in share of deals in 2013, while
California and New England led in share of dollars invested.
Sectors
Together,
Internet, healthcare and mobile companies comprised an even higher percentage
of angel group deals (74%) and angel group dollars (79%), a significant increase
from the prior year. Internet companies saw the largest increase over other
sectors in share of deals and dollars in 2013.
The
trends above can be viewed here in this Infographic .
About
the report
The
Halo Report, introduced today to the 620 attendees at the ACAAngelSummit, 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 directly by the Angel Resource Institute (ARI)
and aggregated with public data using CB
Insights innovative data analyses. The 2013 Halo Report data is based on 884
deals totaling $1.1 billion 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.
The full report
is available at www.svb.com/halo-report
, http://www.angelresourceinstitute.org/halo-report/
, and www.cbinsights.com .
Sponsors
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 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.
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