Halo report

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Halo Report

Text of Halo report

  • Angel Group Update: Q2 2014

  • Table of Contents

    Q2 2014 Highlights p. 3

    National Trends p. 5

    Most Active Angels p.11

    Regional Trends p.13

    Sector Trends p.18

    About the Halo Report p.21

    2

  • Q2 2014 Highlights

    3

  • Angel Group Update: Halo Report Q2 2014

    Most Active Angel Groups

    Total Deals Q2 2014 (Alpha Order)

    Alliance of Angels

    Central Texas Angel Network

    Desert Angels

    Golden Seeds

    Houston Angel Network

    Launchpad Venture Group

    Maine Angels

    Tech Coast Angels

    Highlights

    Round size drops in angel-only deals, while syndicated round size

    increases p.6-7

    Median pre-money valuation continues to rise, jumping to $3.0M

    from $2.7M in Q1 2014 p.9

    Texas breaks into top three most active regions; Mid-Atlantic leads in

    dollars invested p.14-17

    Median healthcare round size jumps by $1M, while median

    Internet round size falls by $1M p.8

    4

  • National Trends

    5

  • Median Angel Round Size Falls in Q2 2014

    Mean Angel Round Size Also Decreases Proportionally

    $0.00

    $0.50

    $1.00

    $1.50

    Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

    Median Round Size Mean Round Size

    6

    *Angel rounds include angels & angel groups only

    $1.01M

    $899K

    $1.10M

    $1.26M

    $1.05M

    $595K $560K

    $750K

    $990K

    $600K

    $M

  • Angels Co-Investing With Non-Angels Leads to an Increase

    in Median and Mean Round Size

    $1.95 $2.00 $1.80 $1.75

    $2.07

    $2.88 $2.87

    $2.58 $2.49

    $2.87

    $0.00

    $0.50

    $1.00

    $1.50

    $2.00

    $2.50

    $3.00

    Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

    Median Round Size Mean Round Size

    7

    $M

  • Median Healthcare Round Size Increases Significantly in Q2 2014

    Both Internet and Mobile / Telecom Decline

    $2.00

    $1.03 $1.00

    $1.56

    $1.85

    $1.05

    $2.56

    $0.85 $0.72

    $0.00

    $0.50

    $1.00

    $1.50

    $2.00

    $2.50

    $3.00

    Healthcare Internet Mobile / Telecom

    Q4 2013 Q1 2014 Q2 2014

    8

    *For all deals involving angel groups, includes co-investors

    $M

  • Median Pre-Money Valuation Continues to Rise Quarter over Quarter

    Pre-Money Valuation Up from $2.7M in Q1 2014 and $2.5M in 2013

    9

    $3.0M Median

    $1.5M 1st Quartile

    $4.0M 3rd Quartile

    $0.30M

    $10M

    * Including all rounds with angel groups pre-series A over rolling four quarters

  • 74.2% 69.9% 70.1% 58.6% 62.1%

    25.8% 30.1% 29.9% 41.4% 37.9%

    0%

    20%

    40%

    60%

    80%

    100%

    Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

    Not Co-Invested Angel Group Co-Investment

    10

    Percentage of Co-Investments by Angel Groups Rebounds in Q2 2014

  • Active Angel Groups

    11

  • Most Active Angel Groups Q2 2014 Total Deals (Alpha Order)

    12

    Southern CA

    Houston, TX

    Boston, MA

    Austin, TX Tucson, AZ Seattle, WA

    New York, NY

    Portland, ME

  • Regional Trends

    13

  • 14

    California

    19.0%

    Northwest

    5.9%

    Southwest

    6.8%

    Great Plains

    3.9% Great Lakes

    9.3%

    Southeast

    7.8%

    Mid-Atlantic

    11.2%

    New

    England

    15.6%

    New York

    8.8%

    Texas

    11.0% Texas

    11.7%

    Q2 2014 Share of Angel Group Deals by Region

  • Texas Breaks Top 3 With the Mid-Atlantic Region Close Behind Quarterly Share of Angel Group Deals by Region

    19.9% 16.7% 19.0%

    12.0% 12.4%

    15.6%

    13.6% 10.5%

    7.8%

    11.2% 16.1% 9.3%

    4.0% 6.2% 6.8%

    5.2% 5.6% 5.9%

    11.2% 7.4% 11.7%

    9.3% 11.2%

    2.8% 3.7%

    3.9%

    9.6% 11.7% 8.8%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    New York

    Great Plains

    Mid-Atlantic

    Texas

    Northwest

    Southwest

    Great Lakes

    Southeast

    New England

    California

    15

    Q1 2014 Q4 2013 Q2 2014

    10.8%

  • 16

    California

    17.4%

    Northwest

    2.4%

    Southwest

    5.0%

    Great Plains

    4.6% Great Lakes

    9.3%

    Southeast

    4.6%

    Mid-Atlantic

    23.3%

    New

    England

    15.7%

    New York

    9.0%

    Texas

    6.1%

    Texas

    8.8%

    Q2 2014 Share of Angel Group Dollars by Region

  • 20.6% 16.1% 17.4%

    18.0%

    11.2% 15.7%

    10.1%

    11.6% 4.6%

    13.6% 26.4%

    9.3%

    2.3%

    7.2%

    5.0%

    4.9%

    6.2%

    2.4%

    8.1%

    1.3%

    8.8%

    4.5%

    23.3%

    4.6% 4.5%

    4.6%

    7.9% 10.1% 9.0%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    New York

    Great Plains

    Mid-Atlantic

    Texas

    Northwest

    Southwest

    Great Lakes

    Southeast

    New England

    California

    10.0%

    17

    Q1 2014 Q4 2013 Q2 2014

    Mid-Atlantic Dominates Regions With 4 Syndicated Deals Over $10M

    Quarterly Share of Angel Group Dollars by Region

  • Sector Trends

    18

  • 39.8% 38.9% 40.3%

    18.7% 19.8% 18.5%

    16.7% 14.8% 11.2%

    2.8% 1.9% 4.9%

    4.4% 5.6% 4.9%

    4.4% 3.1% 4.9%

    1.2% 3.1% 3.9%

    12.0% 13.0% 11.7%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Other

    Food & Beverages

    Consumer Products &Services

    Industrial

    Software

    Mobile & Telecom

    Healthcare

    Internet

    19

    Q1 2014 Q4 2013 Q2 2014

    Healthcare & Internet Remain Stable While Mobile Down Slightly

    Quarterly Share of Angel Group Deals by Sector

  • 32.7%

    47.7%

    31.8%

    35.2%

    25.9%

    30.8%

    13.7% 9.1%

    10.7%

    1.6% 0.5% 11.2%

    4.4% 5.6% 2.7% 3.0%

    6.5% 1.0% 2.0% 8.4% 9.8% 4.4%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Other

    Food & Beverages

    Consumer Products &Services

    Industrial

    Software

    Mobile & Telecom

    Healthcare

    Internet

    0.4% 1.0%

    20

    Software Jumps More than 10 Percentage Points in Q2 2014

    Quarterly Share of Angel Group Dollars by Sector

    Q1 2014 Q4 2013 Q2 2014

  • About the Halo Report

    21

  • What is the Halo Report?

    Angel Group Investment Trends: The Angel Resource Institute, Silicon Valley Bank and

    CB 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 JJ Knight, Halo Report Coordinator: 910-523-5503 and

    jj@angelresource.org.

    22

  • 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 one angel group participating and may include other types of investors in those rounds.

    This report discusses angel group investment trends for Q2 2014, which represents a total of 206 deals and $594M 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

  • Angel Resource Institute JJ Knight, jj@angelresource.org

    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 Carrie Walsh, cwalsh@svb.com

    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,