us angel investment report q1 2013

7/27/2019 US Angel Investment Report Q1 2013

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Angel Group Update: Q1 2013


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Table of Contents

Q1 2013 Highlights p. 4

National Trends p. 6

Most Active Angels p.11

Regional Trends p. 14

Sector Trends p. 19

About the Halo Report p . 22

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Q1 2013 Highlights

3


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Angel Group Update: Halo Report Q1 2013

Most Active Angel Groups TotalDeals Q1Alliance of AngelsDesertAngelsGolden SeedsNew York AngelsSand Hill AngelsSt. Louis Arch Angels

Highlights

Median Angel Round Sizetrends up to $680K in Q12013

Early Stage Pre-MoneyValuations Remain Stable at

$2.5M 81% of deals occur in angel

groups home states

4

Biggest Spenders Most Dollars PerDeal, past 12 monthsGolden SeedsHouston Angel NetworkJ umpStart New J ersey Angel Network

Keiretsu ForumNashville Capital NetworkOregon Angel FundTech Coast Angels


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National Trends

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Median Angel Round Size Q1 2013 Trends up to $680K

$0.00

$0.50

$1.00

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Median Round Size Mean Round Size

6

*Angel rounds include angels & angel groups only

$860K $830K$760K

$900K$800K

$550K $550K $570K $650K$680K

$M


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Median Early Stage Pre-Money Valuation Roll ing YearSteady at $2.5M (Q1 2013)

7

*Including all rounds with angel groups before Series A

$2.5M

Median$1.5M1st Quartile

$3.6M3rd Quartile

$0.11M

$5.5M


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Angels with Other Investors

Q1 2013 Median Round Size $1.5M when Angel Groups Co-Invest with Other Types of Investors

$1.50 $1.47

$1.63

$1.44 $1.50

$1.94

$2.28

$2.57$2.38

$2.05

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Median Round Size Mean Round Size

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$M


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Angel Groups Invest Close to Home81% of deals completed in the home state of investor group & company

71%

76%79%

72%

81%84%

87% 87%

80%

88%

40%

50%

60%

70%

80%

90%

100%

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Investor & Company in Same StateInvestor & Company in Same Region

9

#


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Active Angel Groups

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Most Active Angel Groups Q1 2013 Total Deals

11

5th

Seattle, WA NY, MA, CATucson, AZ

Sunnyvale, CANew York, NYSt. Louis, MO


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Most Active Angel Groups Greatest Dollars Invested Per Deal over past 12 Months

12

Each of the noted groups has invested in at least 5 deals in past 12 months.

NY, MA, CA Houston, TX

Southern CA

Nashville, TNPortland, ORMount Laurel, NJ

Milwaukee, WI


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Regional Trends

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Angel Group Deals Distributed NationallyShare of Angel Group Deals by Region Q1 2013

14

California

15.5%

Northwest

8.8%

Southwest

12.9%

Great Plains

9.3%Great Lakes

12.9%

Southeast

6.2%

Mid-Atlantic

10.8%

NewEngland

11.3%

New York

11.3%


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14.9% 17.8% 15.5%

16.9% 12.8% 11.3%

10.8% 13.3%

6.2%

10.8%13.3%

12.9%

14.9%14.4%

12.9%

8.8%9.4%

8.8%

9.5%7.8%

10.8%

3.9%

9.3%

7.4% 7.2% 11.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

AK / HI / PR

New York

Great Plains

Mid-Atlantic

Northwest

Southwest

Great Lakes

Southeast

New England

California

3.9%

Q1 2013 Share of Angel Group Deals by Region

15

Q4 2012Q1 2012 Q1 2013


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Southwest Edges out California in Share of Dollars in Q1 2013Share of Angel Group Dollars by Region Q1 2013

16

California

17.4%

Northwest

6.4%

Southwest

18.1%

Great Plains

10.3%Great Lakes

11.6%

Southeast

8.6%

Mid-Atlantic

6.7%

NewEngland

13.0%

New York

7.7%


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10.1% 14.1%17.4%

19.2%16.0% 13.0%

7.7%13.9%

8.6%

14.8%

15.3%

11.6%

15.2%

15.8%

18.1%

8.4%

5.8%

6.4%

13.1%11.8%

6.7%

2.3%

10.3%

7.6% 5.0% 7.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

New York

Great Plains

Mid-Atlantic

Northwest

Southwest

Great Lakes

Southeast

New England

California

3.7%

Q1 2013 Share of Angel Group Dollars

17

Q4 2012Q1 2012 Q1 2013


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Sector Trends

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32.2% 36.2%36.8%

15.1%

22.4% 18.7%

13.0%

13.2% 16.6%3.4%

2.9% 6.2%

8.2%

5.2%4.1%

7.5%3.4%

4.1%6.2%1.7%

3.1%14.4% 14.9% 10.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Other

Energy & Utilities

Consumer Pdcts &Svcs

Industrial

Software (non-internet/mobile)

Mobile & Telecom

Healthcare

Internet

Internet, Healthcare & Mobile Deals Combine for 72% of Q1 2013 DealsQ1 2013 Share of Angel Group Deals by Sector

19

Q4 2012Q1 2012 Q1 2013


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32.8%

25.8%31.8%

16.5% 32.1% 22.6%

14.7%

14.1%12.8%

2.0%

1.4% 8.5%8.3%

6.8%7.0%4.1%

3.0%7.5%4.1%

14.2% 15.5% 10.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Other

Energy & Utilities

Consumer Pdcts &Svcs

Industrial

Software (non-internet/mobile)

Mobile & Telecom

Healthcare

Internet

2.1%

Q1 2013 Share of Angel Group Dollars by Sector

20

Q1 2012 Q4 2012 Q1 2013


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About the Halo Report

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What is the Halo Report?

Angel Group Investment Trends:The Angel Resource Institute, Silicon Valley Bank andCB Insights set out to raise awareness of early stage investment activities by angel

investment groups. The Halo Report is the result. The research series highlights angel

investment activity and trends in North America and provides much sought after data that

has not been previously available to entrepreneurs or early stage investors.

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.

Get Involved: Angel groups and individual angel investors interested in including their data

in the Halo Report should contact Sarah Dickey, ARI Vice-President of Research: 913-894-

4700 and [email protected].

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Understanding the Data:Special Round Types and Industry Sectors

The Halo Report provides analysis and trends on US angel and angel group activity.

Angels and angel groups invest alone, together, and with many other types of investors.Unless otherwise noted the Halo Report data includes all rounds that have at least oneangel group participating and may include other types of investors in those rounds.

This report discusses angel group investment trends for Q1 2013, which represents atotal of 207 deals and $222M in total rounds including co-investors.

A few charts report on an Angel Round, a special classification of investment when

angel groups invest alone or just with other angels and angel groups.

Unless otherwise noted, values of less than


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Angel Resource InstituteSarah Dickey, [email protected]

TheAngel Resource Inst itute (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 MarionKauffman Foundation. The programs of ARI include educational workshops and seminars, research projects andreports, and information about angel investing for the general public. ARI is affiliated with the Angel CapitalAssociation, the professional association of angel groups in North America. More information is available atwww.angelresourceinstitute.org.

Silicon Valley BankCarrie Walsh, [email protected] Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity andpremium 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 sixinternational 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. SVBFinancial Group is also a member of the Federal Reserve System.

CB Insights

Anand Sanwal, [email protected] Insights is a National Science Foundation-backed data-as-a-service firm that collects information on privatecompanies and their investors and acquirers. CB Insights data and technology is used by firms to make bettermarketing, procurement, lending, acquisition and equity investment decisions and to gather data-driven market andcompetitive intelligence. The firm's data is regularly cited by leading media publications including the New York Times,Forbes, BusinessWeek and Fast Company among others. For more information, visit http://www.cbinsights.com.

Halo Report Contacts

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mailto:[email protected]://www.angelresourceinstitute.org/mailto:[email protected]://www.svb.com/mailto:[email protected]://www.cbinsights.com/http://www.cbinsights.com/mailto:[email protected]://www.svb.com/mailto:[email protected]://www.angelresourceinstitute.org/mailto:[email protected]


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Angel Resource Institute and Silicon Valley Bank co-produce the Halo Report with data powered by CB Insights.Angel Resource Institute and CB Insights are independent third parties and are not affiliates of Silicon Valley Bank.

This material, including without limitation to the statistical information herein, is provided for informational purposes only. Theinformation should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment orother decision. You should obtain relevant and specific professional advice before making any investment decision. Nothingrelating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investmentor to engage in any other transaction.

2012 SVB Financial Group. All rights reserved. SVB>, SVB Financial Group, and Silicon Valley Bank are registeredtrademarks.

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