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Released Halo Reports


Q2 2014 Halo Report 

Angel Group Valuations Continue Three-Quarter Climb

Q2 Halo Report Reveals Angel Group Round Sizes Increase by $1 Million for Healthcare Companies; Texas Joins Top Three Most Active Regions

Kansas City, MO, Santa Clara, CA, New York City, October 9, 2014 – The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the Q2 2014 Halo Report today, a national survey of angel group investment activity. The report finds median pre-money valuations continuing to climb for the third consecutive quarter reaching $3 million in Q2 2014. Round sizes dropped approximately 40 percent to $600K over the prior quarter when angel groups invested alone, but rose nearly 20 percent to $2 million when angels co-invested with other types of investors.

Texas became one of the most active regions in the US for angel investment in the second quarter, joining California and New England, and the angel groups in the Mid-Atlantic region invested nearly one-quarter of all angel group dollars during the same time period. Average round sizes rose significantly for healthcare companies by $1 million to $2.6 million, while round sizes for Internet companies fell by

 $1 million to $800K in the quarter.

Infographic.

 “Higher valuations are consistent with the opinion that the market has been heating up and, in fact, may be contributing to the decline in round size,” said Rob Wiltbank, Vice Chairman of Research, Angel Resource Institute. 

Halo Report Q2 2014 Highlights:

Investor Syndicates Produce Bigger Rounds

Median angel round sizes were down from $990K to $600K, which is consistent with the second quarter a year ago. When angel groups co-invest with other types of investors, however, the median round size jumped to more than $2 million, a five-quarter high.

Valuations Continue to Rise

Median pre-money valuations rose to $3.0 million, from $2.7 million in Q1 2014, and after several steady quarters at $2.5 million.

Maine Angels Joins Most Active Angel Groups

In Q2 2014, the most active angel groups based on total completed deals were (alphabetic order): Alliance of Angels, Central Texas Angel Network, Desert Angels, Golden Seeds, Houston Angel Network, Launchpad Venture Group, Maine Angels and Tech Coast Angels.

Texan Angel Groups Pump Up the Volume

Angel groups in Texas closed 12% of all deals in Q2, following New England with 16% and California with 19% rounding out the top three regions. The Mid-Atlantic region dominated the share of dollars invested, accounting for 23% of all US angel investments in the quarter, including four syndicated deals over $10 million. California, New England, Texas and the Mid-Atlantic increased the number of deals and the dollars invested while angel groups in the Southeast and the Great Lakes region did fewer deals and invested less than during the prior quarter.

Software Companies Secure More Angel Investment

Together, Internet, healthcare and mobile companies received 73.3% of all angel group dollars, and software companies received 11% of all investments – a ten point jump over the prior two quarters. Healthcare and Internet companies were the most likely to close a deal, consistent with the prior quarter, while mobile deals decreased slightly.

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 Q2 2014 Halo Report data is based on 206 deals totaling $594 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.

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Q1 2014 Halo Report 

Angel Group Investing Heats Up

Q1 2014 Halo Report Reveals Angel Group Investments and Valuations Climbing in 2014


Kansas City, MO, Santa Clara, CA, New York City, August 6, 2014The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the Q1 2014 Halo Report today, a national survey of angel group investment activity. The report finds median round sizes increased to $980K per deal, and pre-money valuations rose to $2.7 million in the quarter. Investments in Internet-related companies jumped significantly, while dollars invested in mobile and healthcare companies dropped.

Infographic.

 “Opportunities are great for startups seeking funding today,” said Rob Wiltbank, Vice Chairman of Research, Angel Resource Institute.  “An increase in high-profile liquidity events is driving new investments by angel groups and all types of investors, which in turn will lead to the formation of new companies and continue to feed the cycle. ”

Halo Report Q1 2014 Highlights:

Round Sizes Reach Five Quarter High

Median angel round sizes were up to $980K, an increase over the prior quarter and the prior year. When angel groups co-invest with other types of investors however, the median round size dropped slightly to $1.65 million from $1.8 million in Q4 2013.

Valuations Rise

Median pre-money valuations rose to $2.7 million, after several steady quarters at $2.5 million.

Angel Investor Forum and Robin Hood Ventures Join Most Active Angel Groups

In Q1, Angel Investor Forum and Robin Hood Ventures joined the top 10 angel groups in number of deals for the first time. The ten most active angel groups in total, based on total deals, completed in Q1 were (alphabetic order): Alliance of Angels, Angel Investor Forum, Central Texas Angel Network, Desert Angels, Houston Angel Network, Launchpad Venture Group, Robin Hood Ventures, Sand Hill Angels, Tech Coast Angels and Wisconsin Investment Partners.

3 in 4 Angel Groups Invest Close to Home

Seventy-five percent of deals were completed in the angel groups’ home state in Q1, remaining reasonably consistent over prior quarters.

Great Lakes Region Rivals California in Q1

While Texas had a slower quarter with a drop in total deals and total dollars, the Great Lakes region had a spike. In Q1, angel groups in the Great Lakes invested more dollars than any other US region, including California, and closed 17% of all the deals, tying California for the lead.

Internet Draws Most, Mobile and Healthcare Investments Drop

Together, Internet, healthcare and mobile companies comprised 71.5% of all deals while Internet companies received the largest percentage of investment dollars. More than 46% of angel group investments went to Internet companies and healthcare investments took a dip over the prior quarter.

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 Q1 2014 Halo Report data is based on 170 deals totaling $228 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.

Angel groups and individual angel investors interested in including their data in the Halo Report should contact JJ Knight of the Angel Resource Institute for details.  She can be reached at 910-523-5503 and jj@angelresource.org.

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.


2013 Halo Report

Average Angel Investments and Valuations Start to Climb

Halo Report Reveals Angel Group Investment Trends for Full Year 2013

Kansas City, MO, Santa Clara, CA, New York City, March 27, 2014 --

The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the 2013 Halo Report today, which finds angel activity on the rise 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.

Infographic

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. 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.   


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 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 directly by 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. 


Angel groups and individual angel investors interested in including their data in the Halo Report should contact JJ Knight, of ARI, for details.  She can be reached at 910.523.5503 and jj@angelresource.org. 


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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Contacts:

JJ Knight

Halo Report Coordinator

Angel Resource Institute

910.523.5503

jj@angelresource.org

 

Carrie Merritt

Silicon Valley Bank

503-574-3705

cmerritt@svb.com

@SVBCarrie

 

Anand Sanwal

CEO and Co-Founder

CB Insights

212-292-3148

asanwal@cbinsights.com


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Q3 Halo Report

Mobile Companies Grab Larger Share of Deals and Dollars from Angel Investors in Q3 2013

Kansas City, MO, Santa Clara, CA, New York City, January 22, 2014The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the Q3 2013 Halo Report today, a national survey of angel group investment activity, which finds 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 rolling 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 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.

For press inquiries or more information, contact JJ Knight at 910.452.0006 or by email at jjknight@angelresource.org

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Q2 2013 Halo Report

Angel Groups Syndicate 3 Out of Every 4 Deals

 Halo Report Reveals Angel Group Investment Trends for Q2 2013

 Kansas City, MO, Santa Clara, CA, New York City, October 16, 2013The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the Q2 2013 Halo Report today, a national survey of angel group investment activity, which finds median angel round sizes down to $590K per deal, median pre-money valuations remaining stable at $2.5M and 74% of deals are syndicated. When angels co-invest with other types of investors the median deal size is $1.95M.

Infographic.

US angel investment continues to be dispersed nationwide and the most active angel groups in the quarter are:

  • Central Texas Angel Network
  • Golden Seeds
  • Desert Angels
  • Dingman Center Angels
  • Tech Coast Angels
  • Alliance of Angels
  • Houston Angel Network
  • Launchpad Venture Group
  • New York Angels
  • Sand Hill Angels

For the first time, the report separates Texas, which has 11% of angel group deals in Q2, behind California, New England and the Southeast.  New England-based angel groups closed deals worth slightly more than deals in California in Q2. The sectors getting funding remain concentrated in Internet, healthcare and mobile, with 71% of completed Q2 deals and 79% of Q2 dollars in these categories.

  “Clearly, angel groups are successfully syndicating opportunities, ” said Rob Wiltbank, Vice Chairman of Research, Angel Resource Institute.  “Syndication remains highly concentrated geographically, as with formal venture capital, but with growing online angel activity, it will be interesting to see how this changes in the future.”  

Halo Report Q2 2013 Highlights:

Round Sizes

Median angel round sizes were flat year-over-year, but dipped to $590K in Q2, from $700K in Q1 and after three quarters of growth. When angel groups co-invest with other types of investors, the median round size is trending up to $1.95M in Q2 from $1.4M in Q1. Seventy-four percent of angel group deals are syndicated.

Valuations

Pre-money valuations in early stage companies remain steady at $2.5M, but they are creeping downward, with both the high and low end of the distribution declining.  

Locations

Seventy-two percent of deals were completed in the angel groups’ home state in Q2, dipping slightly from Q1, but remaining fairly consistent over the course of the prior year.

Geography

Seventy percent of angel group deals in Q2 were completed outside California and New England, although 36% of dollars are invested in these regions, which is a nearly ten point gain over the prior quarter and year. California led in number of deals, with 17% share of angel group investments, but was edged out slightly by New England in the total dollars invested during the quarter.

Sectors

Together, Internet, healthcare and mobile companies completed 71% of angel group deals and received 79% of angel group dollars, an increase from Q1 and the prior year.

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. This Halo Report data is based on 379 deals totaling $461 million dollars invested in the first half of 2013.   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.

Angel groups and individual angel investors interested in including their data in the Halo Report should contact JJ Knight, Halo Report Coordinator.  JJ can be reached via jj@angelresource.org.

Download the Q2 2013 Halo Report Information

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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 27 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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Q1 2013 Halo Report

Angel Groups Invest More Per Deal, Stay Local:
Halo Report Reveals Angel Group Investment Trends for Q1 2013

Download Full Report

Kansas City, MO, Santa Clara, CA, New York City, July 18, 2013The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the Q1 2013 Halo Report today, a national survey of angel group investment activity, which finds round sizes are trending up to a median of $680K per deal, pre-money valuations remain stable at $2.5 million and most angel investment happens in angel groups’ home states. 

US angel investment continues to be dispersed nationwide, and in the first quarter entrepreneurs in the Southwest region of the country received a slightly larger share of dollars than startups in California, for the first time.  The sectors getting funding remain concentrated in Internet, healthcare and mobile, with 72% of completed Q1 deals in these categories. 

" The market for angel investing is solid: pre-money valuations are stable, round sizes are trending up, and market activity is spread widely throughout the U.S.,” said Rob Wiltbank, Vice Chairman of Research, Angel Resource Institute.  “The key trends over the last few years have been syndication and broader geographic distribution of investment; both of which suggest that attractive new ventures are finding places to start all over the country.”

 Halo Report Q1 2013 Highlights:

Q12013HaloInfo1

Round Sizes

Median angel round sizes reached another five quarter high at $680K in Q1 2013 up from $550K a year ago and $650K last quarter. When angel groups co-invest with other types of investors, the median round size is higher at $1.5M. Seventy-five percent of angel deals are syndicated.

 Valuations

Pre-money valuations in early stage companies remain steady at $2.5M.

 Locations

For the first time the Halo Report compares the location of angel groups with the location of their investments. Eighty-one percent of deals were completed in the angel groups’ home state over the past 12 months.

 Sectors

Together, Internet, healthcare and mobile companies completed 72% of angel group deals and received 64% of angel group dollars. All three sectors closed more deals than one year ago and healthcare companies received a slightly larger share of angel group dollars than in Q1 2012.

 Most Active Angel Groups

Based on total deals, the most active angel groups in Q1 are (alphabetic order) Alliance of Angels, Desert Angels, Golden Seeds, New York Angels, Sand Hill Angels and St. Louis Arch Angels.

 Angel groups that invested the most per deal in the last 12 months are (alphabetic order) Golden Angels Investors, Golden Seeds, Houston Angel Network, JumpStart New Jersey Angel Network, Nashville Capital Network, Oregon Angel Fund and Tech Coast Angels.

 Geography

Angel group investment deals are more evenly distributed across the US than in years past. Seventy-three percent of angel group deals are now done outside California and New England, although 30% of dollars are invested in these regions. The Southwest region edged out California for the first time, with 18.1% share of angel group dollars. Year over year, companies in the Great Plains region and New York saw the largest increase in angel group deals. Declines of equal proportion are in New England and the Southeast over the same time period.

 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 Q1 2013 Halo Report data is based on 207 deals totaling $222 million dollars invested.   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.

Angel groups and individual angel investors interested in including their data in the Halo Report should contact Sarah Dickey, Vice President of research for ARI, for details.  She can be reached at 913-894-4700 and sdickey@angelcapitalassociation.org. *******

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.

Download the Full Report

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2012 Halo Report: Angel Group Activity Year in Review

View Full Report

View 2012 Halo Report Infographic

Good News for Startups: Angel Investment Remains Stable

Halo Report Reveals Angel Group Investment Trends for the Full Year 2012

April 17, 2013: In collaboration with Silicon Valley Bank (SVB) and CB Insights, Angel Resource Institute released the 2012 Halo Report today, a national survey of angel group investment activity, as the Angel Capital Association gears up for its biggest event of the year in San Francisco this week.

 The report shows angel investing for the year was stable with prior years. Pre money valuations for early-stage companies remained steady at $2.5M and round sizes were relatively consistent. The sectors and geographies getting funding are shifting, however, most notably with mobile and telecom companies gaining share of angel investment deals and dollars, while healthcare companies are losing share of angel investments. Companies in the Northwest and the Southwest US are gaining ground on the number of deals and total investments they receive over companies in California and New England.

“Angel investors continue to play an important role in funding startups,” said Rob Wiltbank, Vice Chairman of Research, Angel Resource Institute. “The steady valuation, growth in investment size, and wide geographic activity among angel investors is more evidence that angels are a reliable and a critical part of growing the next generation of great new companies in this country.”

Wiltbank will present the 2012 Halo Report during the 2013 Angel Capital Association Summit, taking place April 17-19 in San Francisco. The Summit, with the theme, “Navigating Change for Angel Success,” is the largest worldwide gathering of angel investors and will host 600 attendees from 27 countries, 38 states and five Canadian provinces.

One new company in the mobile sector benefitting from angel investment is GlobeSherpa, based in Portland, Oregon. “We are entirely angel funded,” said Nat Parker, CEO of GlobeSherpa, a mobile ticketing software company. “We are disrupting legacy payment systems and ticket machines with extremely convenient mobile tickets that consumers can purchase and use with their smart phones. In the process we’re helping transit systems save millions of dollars and we are able to do this on the backs of our angel investors who put their trust in us.”

Halo Report 2012 Highlights: (View Infographic)

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 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 2012 Halo Report data is based on 783 deals totaling $1.1 billion dollars invested.   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.

Angel groups and individual angel investors interested in including their data in the Halo Report should contact Sarah Dickey, ARI Research Director, for details.  She can be reached at 913-894-4700 and sdickey@angelcapitalassociation.org.

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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 U.S. 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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2012 Halo Report: Year in Review

Halo Report 2012 Year in Review
2012HaloReportInfographic

The Halo Report ™ is a collaborative effort of Angel Resource Institute and Silicon Valley Bank with data powered by CB Insights intended to raise awareness of early stage investment activities. Together, the three organizations produce a quarterly research report, titled the Halo Report™, which highlight angel investment activity and trends in the United States and provide much sought after data that has not been previously available to entrepreneurs or early stage investors.

Please take a look at a few recent reports: 

 

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