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2011 Halo Report :: US Angel Group Activity

At the Angel Capital Association (ACA) Summit in Austin in March, the Angel Resource Institute reported on angel group activity in 2001 in the first annual Halo Report.  I found some of the results quite interesting.  For example:

  • The median round of investment by group was about $700,000 but less than $300,000 was invested by the local group leading the deal.  Over 2/3rds of angel group deals were syndicated with others (mostly other angel groups) who provide the majority of the capital in each round.  Furthermore, the median round size was about 40% larger in 2011 than in 2010, a really significant increase to me.
  • Only 21% of angel deals were done in California, which captures about 40-50% of venture capital.  The following graphic demonstrates the broad distribution of angel investment in the US:

Clearly, angel investment is more geographically diverse than is venture capital.  I was particularly impressed by the number of angel deals done in the Great Lakes and Southeast regions, not generally associated with high entrepreneurial activity.

 

  • Internet/software deals continue to dominate angel activity with Healthcare in a strong second position.  Sector investing for angels seems to parallel that of the venture capital community.  Of particular interest to me was the Other category.  Angels would appear to be more diverse investors than are VCs because investors tend to invest in the space they know.  With an average of 30 or so investors per angel group, we would expect the business  sector experience  to be broader than that of venture capitalists, which is evidence by the following data:

Finally, congratulations to the most active angel organizations in the US in 2011:

The Tech Coast Angels – Southern California

Band of Angels – Silicon Valley

Golden Seeds –  CA, MA and NY

Central Texas Angel Network – Austin

Launch Pad Venture Group – Boston

Written by Bill Payne

user Bill Payne Angel Investor ,
Frontier Angel Fund

Bill Payne has been actively involved in angel investing since 1980. He has funded over 50 companies and mentored over 100. He is a founding member of four angel organizations: Aztec Venture Network, Tech Coast Angels, Vegas Valley Angels, and Frontier Angel Fund.

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