Angel investing activity didn’t just pick up in Chicago last year. It picked up nationwide. After decreasing in 2008-09, it’s starting to increase everywhere. Total investments in 2011 were $22.5 Billion.
“Software regained the top sector position with 23 percent of total angel investments in 2011, followed by healthcare services/medical devices and equipment (19 percent), industrial/energy (13 percent), biotech (13 percent), IT services (7 percent), and media (5 percent). Industrial/energy investing has remained a significant sector for angels for the last few years, reflecting a continued appetite for clean tech.
Mergers and acquisitions represented 54 percent of the angel exits, and bankruptcies accounted for 24 percent of the exits in 2011. Slightly more than half of the angel exits were at a profit and annual returns for angel’s exits (mergers and acquisitions, notes, and IPOs) were between 18 percent and 28 percent; however, these returns were quite variable.”