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Angel Activity Remains Stable

Mark Marich

Last week, we brought you the latest news from the venture capital industry. This week, we hear from the angels and the overall message is a bit more positive—at least that overall angel investing for 2012 was “stable with prior years.”

Here are the highlights according to the 2012 Halo Report from the Angel Resource Institute:

  • 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.
  • 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 five most active angel groups across the country were: New York Angels (New York NY), Tech Coast Angels (Southern California), Launchpad Venture Group (Boston, MA), Central Texas Angel Network (Austin, TX), Golden Seeds (New York-Boston-San Francisco).

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