Angels On the Upswing Still Targeting Tech
Despite reason for concern with the Q3 2013 numbers on angel investing, the total figures for 2013 as a whole show that angel activity is on the rise with more high-valuation deals closed in 2013 than the previous year. They also show a continued trend toward investment in technology that mirrors a jump in venture capital dollars in the sector.
The 2013 Halo Report show increased angel investment in internet (+7% over 2012), healthcare (+36% over 2012) and mobile (+10% over 2012) startups. 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.
"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%), continue to occur in California, yet overall deals are becoming more evenly distributed across the rest of the nation. California and the Great Lakes led in share of deals in 2013, while California and New England led in share of dollars invested.
The Halo Report is released each quarter by the Angel Resource Institute, Silicon Valley Bank and CB Insights.