Angel Investment Groups Trends and Statistics Based on surveys and membership application data from members of the Angel Capital Association May, 2008
Summary of ACA Membership May, 2008 Full Members 147 Provisional Members 18 Investors in Member Groups 6,800 States & Provinces 50 Affiliate Organizations 19
Members and Affiliates April, 2008 Full Members Provisional Members Affiliates
2007 Group Investment Data Average Median Number of Investments 7.3 5 Total dollars invested $1.94 mil $1.1 mil Dollars invested per round $265,926 Number of new companies 4.5 10% increase in average investment per round from 2006, but same number of investments 66% had follow-on or co-investments with venture capital firms 25% had distributions to investors Pacific Northwest: $2.5 mil in 13.5 companies average ($189K per round) BUT limited data available Source: 2008 ACA Angel Group Confidence Survey
Average Size Investment Per Round - 2007 < $150,000 $150,000 - $250,000 $250,000 - $500,000 $500,000 - $750,000 > $750,000 0 10 20 30 40 Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
Investment Preference 2007-2008 Biotechnology Business Products/ Services Computers & Peripherals Consumer Products/ Services Electronics/ Instrumentation Financial Services Healthcare Services Industrial/ Energy IT Services Media & Entertainment Medical Devices & Equipment Networking & Equipment Other Retail/ Distribution Semiconductors Software Telecommunications 0 10 20 30 40 50 60 70 80 90 Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
Preferred Investment/Company Stage 2007-2008 Percent of Groups 90 80 70 60 50 40 30 20 10 0 Seed/Startup Early Stage Expansion Later Stage Source: 2008 ACA Angel Group Confidence Survey
Geography Where do Groups Invest? 2-hour drive 4-hour drive State/ province Region No restrictions 0 5 10 15 20 25 30 Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
2008 Prediction: Overall Investment Activity Deals and dollars increase Everything is same Deals increase, dollars decrease Deals decrease, dollars increase Deals and dollars decrease Other 0 10 20 30 40 50 60 Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
2008 Prediction: How Many New Companies Will You Invest In? Percent of Groups 45 40 35 30 25 20 15 10 5 0 None 1 to 2 3 to 5 6 to 9 10+ Companies Source: 2008 ACA Angel Group Confidence Survey
2008 Prediction: How Will Conditions for Liquidity Change? Decrease significantlly Decrease slightly No change Strengthen slightly Strengthen signficantly 0 10 20 30 40 50 60 Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
Co-Investment/ Follow-On Preferences Individual angels Other angel groups Early-stage VC Later-stage VC Family offices Other private equity No co-investment 0 20 40 60 80 100 Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
Investors Per Group Average = 55 Median = 41 40 35 30 25 20 15 10 5 0 2 to 10 11 to 25 26 to 50 51 to 75 76 to 100 101+ Percent of Groups Source: 2008 ACA Confidence Survey
Organization Types Groups 40 35 30 25 20 15 10 5 For Profit 48% (54 groups) Non Profit 35% (39 groups) No Structure 17% (20 groups) 0 LLC LP C-Corp 501c3 501c4 501c6 Non-Profit None Source: 2007 ACA Conf survey and membership applications 113 groups reporting (2006-2007)
ACA Membership: Networks and Funds 99 12 17 Angel Networks Networks w/sidecar Funds Angel Funds May 2007 Source: Membership Applications, 2006-2007
Trends Among ACA Member Groups University-connected angel groups Green/ clean-tech focus Women angel groups Co-investment regions, US, cross-border Communication with angels world-wide Growing relationships with VCs
New Best Practice Guidance Papers Board Governance Negotiating Deal Terms VC Angel Group Relationships State Angel Tax Credit Programs Reports will be released in Summer, 2008 joining 4 papers from 2007 www.angelcapitaleducation.org/dir_resources/white_papers.aspx
Need More Information? Marianne Hudson Angel Capital Education Foundation 8527 Bluejacket St Lenexa, KS 66214 913-894-4703 mhudson@angelcapitalassociation.org www.angelcapitaleducation.org