Startups Access Angel Group Funding Nationwide; Median Angel Round Sizes Increased to $700K

New Halo Report Reveals Angel Group Investment Trends

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Mar 08, 2012, 01:00 ET

AUSTIN, Texas, March 8, 2012 /PRNewswire/ -- The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights today announced findings from the first Halo Report, a collaborative effort to raise awareness of early stage investment activities by angel investment groups. 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.

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Halo Report Highlights: (Infographic)

Angel groups are active throughout the U.S. in 2011
- California leads in deals and dollars among individual states
- 79% of angel group investments were in companies outside of California
- 70% of total funding was invested outside of California
Median angel group rounds size grew to $700,000, an increase of 40% over 2010
58% of angel group investments were in healthcare and internet companies
- 60% of healthcare investments were in medical device and equipment companies
The most active angel groups were Tech Coast Angels, Band of Angels, Golden Seeds, Central Texas Angel Network and Launchpad Venture Group

Angel investors, those who invest their own funds and expertise directly into startup companies, appear to be taking on an increasingly important role in driving entrepreneurship throughout the United States. Their investments are in startups and young companies, which have been cited by the Kauffman Foundation as the key source of net new jobs in the country. Nationwide, these angel group investments have opened up new opportunities for centers of innovation and entrepreneurship. The Halo Report found that many deals are syndicated among investors. As a result, companies needing larger investments have access to the additional capital they need to grow their businesses.

"The Halo Report is the first of its kind to systematically track investment and company formation at the earliest stage, providing a window into the future of innovation," according to Allan May, Chairman of ARI. "Startup companies fuel economic growth and job creation and are the drivers of future U.S. competitiveness. This research is an important step in the promotion of startup investing, providing accurate data to help entrepreneurs, policy makers, and the public at large understand who angel investors are, how they operate, what their results are, and how angel investment impacts the economy."

According to Greg Becker, President and CEO of Silicon Valley Bank, "Entrepreneurs and the investors who take a chance on them are fundamental to the innovation economy. By shedding more light on angel investment activity we're helping young companies identify sources of capital and mentorship, ultimately leading to the development of innovative products and the next generation of exciting new companies."

CB Insights CEO and Co-founder, Anand Sanwal, said, "In partnership with ARI and SVB, we are happy to be part of an effort that highlights and brings a data-driven perspective to what is a very important, but historically opaque, part of our innovation economy. We're looking forward to seeing how investors and corporations use this data to understand emerging early-stage trends and to identify investment and M&A opportunities." CB Insights specializes in providing data on high growth private companies and their investors and acquirers.

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 2011 Halo Report data is based on 573 deals totaling $873.3 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, ARI Research Manager, for details. She can be reached at 913-894-4700 and [email protected].

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 26 U.S. offices and seven 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 Private Bank is a division of Silicon Valley Bank. 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.

SOURCE Silicon Valley Bank