Angel Group Update, 3Q 2015 - The Venture Alley · •TX, CA & NY boast multiple angel groups on...
Transcript of Angel Group Update, 3Q 2015 - The Venture Alley · •TX, CA & NY boast multiple angel groups on...
Table of Contents
3Q 2015 Highlights, p. 3
National Trends, p.5
Most Active Angels, p. 9
Regional Trends, p. 12
Sector Trends, p. 15
About the Halo Report, p. 18
Highlights •Angel only round sizes jump in 3Q 2015.
–Median up 45% from 2Q 2015 report.
•Median seed pre-money valuation increases to $4M in 2015 thru 3Q
–33% increase from 2014, highest valuation in the Halo Report to date.
•TX, CA & NY boast multiple angel groups on the list of most active groups.
•Software sector continues to be the top industry by deal flow, while healthcare
is expanding its share of dollars.
Halo Report 3Q 2015
Median and Mean Round Sizes – Angels Only 2015 Shows Round Sizes Steadily Increasing Quarter Over Quarter
$350k $360k
$500k $500k
$725k
$767k
$606k
$1.20M
$735k
$1.41M
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
3Q 4Q 1Q 2Q 3Q
2014 2015
Mil
lio
ns
USD
Median Round Size Mean Round Size
Median and Mean Round Sizes – Angel Co-Investments Rounds Also Trending Up When Angel Groups Co-Invest With Non-Angels
$1.10M
$1.50M
$1.20M
$1.55M $1.71M
$1.96M
$2.80M
$2.38M
$3.09M
$3.51M
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
3Q 4Q 1Q 2Q 3Q
2014 2015
Mil
lio
ns
USD
Median Round Size Mean Round Size
Median Seed Stage Pre-Money Valuation Median Valuation Up 33% From 2014, Highest Ever Valuation In HALO Report
$0.12M
$15.0M
MEDIAN :
$4.0M
3rd Quartile:
$6.5M
1st Quartile:
$2.5M
$12.8M
3rd Quartile:
$6.3M
$3.0M MEDIAN :
1st Quartile:
$2.0M
$0.90M
2014 2015 Thru 3Q
Data sourced from
Most Active Angel Groups 2015 thru 3Q – Total Number of Deals
Total Deals 2015 (descending order)
• Tech Coast Angels
• Houston Angel Network
• Central Texas Angel Network
• Alliance of Angels
• New York Angels
• Wisconsin Investment Partners
• Sand Hill Angels
• Keiretsu Forum
• Queen City Angels
• Launchpad Venture Group
• Golden Seeds
• Maine Angels
2015 Thru 3Q Share of Angel Group Deals by Region:
California
21.1%
Northwest
6.9%
Southwest
9.1%
Great Plains
3.9%
Great Lakes
12.9%
Southeast
9.1%
Mid-Atlantic
5.2%
New England
12.1%
Texas
11.2%
New York
8.6%
Northwest
4.1%
Southwest
7.5%
Great Plains
2.5%
Great Lakes
14.5%
Southeast
13.8%
Mid-Atlantic
3.4%
New England
15.5%
Texas
9.7%
New York
9.8%
California
19.7%
2015 Thru 3Q Share of Angel Group Dollars by Region:
Quarterly Share of Angel Group Deals by Sector Software continues as top industry by deal flow
23.3% 19.4% 23.0% 20.3% 20.8%
2.3% 3.0% 2.5%
2.3%
6.0%
3.0%
3.8%
10.5%
4.5%
10.0%
3.8% 3.8%
5.8%
4.5% 1.3%
5.7%
2.3%
6.0% 6.0%
5.1% 1.9%
9.3% 11.9%
13.0%
19.0% 17.0%
7.0% 10.4% 9.0%
8.9% 11.3%
37.2% 37.3% 33.0%
38.0% 35.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
3Q 4Q 1Q 2Q 3Q
2014 2015
Software
Commercial Services
Healthcare Svcs/Suppl./Syst.
Media
Consumer Goods & Recreation
Pharma & Biotech
IT Hardware
Energy
Other
Quarterly Share of Angel Group Dollars by Sector Internet & Healthcare Alone Account for 50% of Invested Capital in Past 5 Quarters
21.3% 27.6%
23.2% 30.0%
25.5%
3.6% 3.5%
4.6% 3.6% 0.7%
2.6%
18.3% 7.6% 16.9% 1.2% 4.2%
3.9%
1.9% 5.4%
0.1%
2.8%
8.0% 5.4%
15.7% 17.1%
16.6% 24.3%
30.0%
0.9% 12.0%
13.5% 8.7% 15.3%
36.1% 27.4%
17.6% 20.5% 22.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
3Q 4Q 1Q 2Q 3Q
2014 2015
Software
Commercial Services
Healthcare Svcs/Suppl./Syst.
Media
Consumer Goods & Recreation
Pharma & Biotech
IT Hardware
Energy
Other
0.3%
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.
A few charts report on an “Angel Round,” a special classification of investment when angel groups invest alone or only with other angels and angel groups.
Unless otherwise noted, values of less than 1% in the industry sectors are included, but are not labeled directly.
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 at Willamette University Katie Hamburg, [email protected] The Angel Resource Institute (ARI) is a 501(c)(3)charitable organization devoted to education, mentoring and research in the field of angel investing, housed at Willamette University. ARI was founded by the Ewing Marion Kauffman Foundation, and is a sister organization of the Angel Capital Association, the professional association of angel groups in North America. The programs of ARI include educational workshops and seminars, research projects and reports, and information about angel investing for the general public. More information is available at: www.angelresourceinstitute.org
PitchBook PitchBook is an impartial private equity and venture capital research firm that provides premium data, news and analysis. Through a combination of publicly available sources and rigorous firsthand research with industry professionals, PitchBook has developed an extensive database with in-depth information and statistics on hundreds of thousands of companies, deals, investors, service providers and limited partners.
Willamette University MBA Willamette University MBA is a leader in early stage investment research and entrepreneurship. In addition to being the
home of the Angel Resource Institute, Willamette launched the world’s first student run angel investment fund in 2008. Willamette faculty and researchers published the world’s largest and most cited study on angel investor returns, Returns to Angel Investors in Groups (2007), and one of the most widely used textbooks on entrepreneurship, Effectual Entrepreneurship (2011). They also perform data analysis for the HALO Report.
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