Looking at a Halo report on angels and how they invest is interesting. Silicon Valley Bank put it out on their website. Click over there to see pretty graphics. It’s informative in a macro way.
The most active group in the United States last year was the New York Angels. That’s great for the startup community in New York. Last year, investment in the midwest was up 12.3%. That’s a great trend.
At Built in Chicago, they are reporting that funding in the first quarter of this year was up. $61 million was raised over 22 companies with two exits. That’s a great sign that the Chicago/Midwestern entrepreneurial ecosystem is growing and getting stronger.
Last year nationwide, 66,000 companies were funded by angels. They collectively invested close to $25 billion. Only 3000 companies received venture funding, and they invested roughly the same amount of capital.
The most popular sectors to invest in are internet and healthcare. They are 53% of all the deal flow. Although investment in healthcare was down last year.
If you are looking for a clue as to the “price” all these companies were funded at, they have that data too. The median valuation of angel funded companies was $2.5 million dollars, with the median round being $600,000 when a group invests by itself. Nearly half of all deals angel groups do are follow on rounds.
When groups co-invest together, the round is larger. The median round on co-investment is $1.5M. Based on the other numbers, what that number should indicate is that angel groups typically do the seed round themselves, and then co-invest in later rounds.
11% of all angel deals are structured as a convertible debt instrument. That is a trend we have noticed more and more nationwide. But, out of all the deals that were funded, 63% of them had revenue. Angels aren’t investing in a wing and a prayer, they are trying to build real scalable companies with the money they put to work.