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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 and this presentation is the Q1 2013 update. 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.
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Angel Group Update: Q1 2013
Table of Contents
Q1 2013 Highlights p. 4
National Trends p. 6
Most Active Angels p.11
Regional Trends p. 14
Sector Trends p. 19
About the Halo Report p. 22
2
Q1 2013 Highlights
3
Angel Group Update: Halo Report Q1 2013
Most Active Angel Groups – Total Deals Q1 •Alliance of Angels •Desert Angels •Golden Seeds •New York Angels •Sand Hill Angels •St. Louis Arch Angels
Highlights
• Median Angel Round Size trends up to $680K in Q1 2013
• Early Stage Pre-Money Valuations Remain Stable at $2.5M
• 81% of deals occur in angel groups’ home states
4
Biggest Spenders – Most Dollars Per
Deal, past 12 months •Golden Angels Investors
•Golden Seeds
•Houston Angel Network
•JumpStart New Jersey Angel Network
•Nashville Capital Network
•Oregon Angel Fund
•Tech Coast Angels
National Trends
5
Median Angel Round Size Q1 2013 Trends up to $680K
$0.00
$0.50
$1.00
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Median Round Size Mean Round Size
6
*Angel rounds include angels & angel groups only
$860K $830K $760K
$900K $800K
$550K $550K $570K $650K $680K
$M
Median Early Stage Pre-Money Valuation Rolling Year
Steady at $2.5M (Q1 2013)
7
*Including all rounds with angel groups before Series A
$2.5M Median
$1.5M 1st Quartile
$3.6M 3rd Quartile
$0.11M
$5.5M
Angels with Other Investors
Q1 2013 Median Round Size $1.5M when Angel Groups Co-
Invest with Other Types of Investors
$1.50 $1.47 $1.63
$1.44 $1.50
$1.94
$2.28
$2.57 $2.38
$2.05
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Median Round Size Mean Round Size
8
$M
Angel Groups Invest Close to Home
81% of deals completed in the home state of investor group & company
71%
76% 79%
72%
81% 84%
87% 87%
80%
88%
40%
50%
60%
70%
80%
90%
100%
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
Investor & Company in Same State
Investor & Company in Same Region
9
#
Active Angel Groups
10
Most Active Angel Groups Q1 2013 – Total Deals
11
5th
Seattle, WA NY, MA, CA Tucson, AZ
Sunnyvale, CA New York, NY St. Louis, MO
Most Active Angel Groups –
Greatest Dollars Invested Per Deal over past 12 Months
12
Each of the noted groups has invested in at least 5 deals in past 12 months.
NY, MA, CA Houston, TX
Southern CA
Nashville, TN Portland, OR Mount Laurel, NJ
Milwaukee, WI
Regional Trends
13
Angel Group Deals Distributed Nationally Share of Angel Group Deals by Region Q1 2013
14
California
15.5%
Northwest
8.8%
Southwest
12.9%
Great Plains
9.3% Great Lakes
12.9%
Southeast
6.2%
Mid-Atlantic
10.8%
New
England
11.3%
New York
11.3%
14.9% 17.8% 15.5%
16.9% 12.8% 11.3%
10.8% 13.3%
6.2%
10.8% 13.3%
12.9%
14.9% 14.4%
12.9%
8.8% 9.4%
8.8%
9.5% 7.8%
10.8%
3.9%
9.3%
7.4% 7.2% 11.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
AK / HI / PR
New York
Great Plains
Mid-Atlantic
Northwest
Southwest
Great Lakes
Southeast
New England
California
3.9%
Q1 2013 Share of Angel Group Deals by Region
15
Q4 2012 Q1 2012 Q1 2013
Southwest Edges out California in Share of Dollars in Q1 2013
Share of Angel Group Dollars by Region Q1 2013
16
California
17.4%
Northwest
6.4%
Southwest
18.1%
Great Plains
10.3% Great Lakes
11.6%
Southeast
8.6%
Mid-Atlantic
6.7%
New
England
13.0%
New York
7.7%
10.1% 14.1% 17.4%
19.2% 16.0% 13.0%
7.7% 13.9%
8.6%
14.8%
15.3%
11.6%
15.2%
15.8%
18.1%
8.4%
5.8%
6.4%
13.1% 11.8%
6.7%
2.3%
10.3%
7.6% 5.0% 7.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
New York
Great Plains
Mid-Atlantic
Northwest
Southwest
Great Lakes
Southeast
New England
California
3.7%
Q1 2013 Share of Angel Group Dollars
17
Q4 2012 Q1 2012 Q1 2013
Sector Trends
18
32.2% 36.2% 36.8%
15.1%
22.4% 18.7%
13.0%
13.2% 16.6% 3.4%
2.9% 6.2%
8.2%
5.2% 4.1%
7.5% 3.4%
4.1% 6.2% 1.7%
3.1% 14.4% 14.9%
10.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Other
Energy & Utilities
Consumer Pdcts &Svcs
Industrial
Software (non-internet/mobile)
Mobile & Telecom
Healthcare
Internet
Internet, Healthcare & Mobile Deals Combine for 72% of Q1 2013 Deals
Q1 2013 Share of Angel Group Deals by Sector
19
Q4 2012 Q1 2012 Q1 2013
32.8% 25.8%
31.8%
16.5% 32.1% 22.6%
14.7%
14.1% 12.8%
2.0%
1.4% 8.5% 8.3%
6.8% 7.0% 4.1%
3.0% 7.5% 4.1%
14.2% 15.5% 10.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Other
Energy & Utilities
Consumer Pdcts &Svcs
Industrial
Software (non-internet/mobile)
Mobile & Telecom
Healthcare
Internet
2.1%
Q1 2013 Share of Angel Group Dollars by Sector
20
Q1 2012 Q4 2012 Q1 2013
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 Sarah Dickey, ARI Vice-President of Research: 913-894-
4700 and [email protected].
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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 Q1 2013, which represents a total of 207 deals and $222M 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 <1% are included, but are not labeled or noted as a change in activity.
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Internet
Mobile & Telecom
Software
Energy & Utilities
Computer Hardware & Services
Healthcare
Industrial
Automotive & Transportation
Business Products & Services
Consumer Products & Services
Electronics
Environmental Services &
Equipment
Financial Services
Food & Beverages
Leisure
Media
Metals & Mining
Retail
Risk & Security
Halo Report Industry Sectors
Angel Resource Institute Sarah Dickey, [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 Carrie Walsh, [email protected]
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 28 U.S. offices and six
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
Financial Group is also a member of the Federal Reserve System.
CB Insights Anand Sanwal, [email protected]
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, BusinessWeek and Fast Company among others. For more information, visit http://www.cbinsights.com.
Halo Report Contacts
24
Angel Resource Institute and Silicon Valley Bank co-produce the Halo Report™ with data powered by CB Insights.
Angel Resource Institute and CB Insights are independent third parties and are not affiliates of Silicon Valley Bank.
This material, including without limitation to the statistical information herein, is provided for informational purposes only. The
information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or
other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing
relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment
or to engage in any other transaction.
©2012 SVB Financial Group. All rights reserved. SVB>, SVB Financial Group, and Silicon Valley Bank are registered
trademarks.
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