Angel Investment Activity Report - Q1 2012 HALO Report by cbinsights

VIEWS: 1,017 PAGES: 17

More Info
									Angel Group Update: Q1 2012
What is the Halo Report™?

 Angel Group Investment Trends: The Angel Resource Institute, Silicon Valley
 Bank d         Insights t t t      i
 B k and CB I i ht set out to raise awareness of early stage investment
                                                     f   l t      i    t    t
 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 Research
 Manager: 913-894-4700 and

Angel Group Update Q1 2012: Report Highlights

Valuation of Early Deals p.4       Round Size p.5

The median pre-money               The median size of angel & angel
valuation for pre-Series A deals   group syndicate rounds remains
by angel groups is $2 5M in the    steady at $700k in Q1 2012 when
past 12 months                     compared to the 2011 median.

Syndication p.7                    Spotlight p.14

Angel groups syndicated 75%        Most Active Healthcare Angel
of Q1 2012 deals showing an        Groups & 1Q 2012 Most Active
increasing trend to co-invest.         p

    First Look: Pre-Money Valuations in Angel Group Deals;
    Median of $2.5M over the last 12 months

                                                                  $4.0M      $6.0M
                                                                             $6 0M


                                         1st            Median      3rd
                                       Quartile                   Quartile

*This includes all rounds with angel groups before Series A

   Median Angel Round* Size Held Steady at $700K in Q1 2012;
   After a 40% increase in 2011 over 2010


       1Q                                            $0.70
      2012                                                   $0.94



            $0 00                        $0.50
                                         $0 50               $1.00
                                                             $1 00             $1 50

                        Median Round Size                    Mean Round Size

*Angel rounds include angels & angel groups only

Median Round Size is $1.4M when Angel Groups Co-
Invest with Other Types of Investors

                    Angels with Other Investors

  1Q                     $1.38
 2012                              $1.95



    $            $
                 $1.00           $
                                 $2.00     $3.00
                                           $               $4.00
                                                           $          $

             Median Round Size                Mean Round Size

Angel Groups’ Co-Invested Deals Increased in Q1 2012


  80%                                   74.5%
             63 1%

  40%                       36.9%
                                                   25 5%

                     2011                   1Q 2012

            Angel Group Co-Investment   Not Co-Invested

Angel Group Update Q1 2012: National Activity Snapshot

 Note: The following data covering regions and sectors is
 based on activity for the past year (2Q 2012 – 1Q 2011 or April
 2011 – March 2012) rather than Q1 2012 only, in order to best
 demonstrate the angel group activity across the country.

     Angel Groups are Active Throughout the U.S.
     over the past 12 months

                                                                      New England
                  Northwest                                              14.5%
                    8.3%                                   New York
                                  Great Plains
                                     3.6%        Great Lakes
                                                    13.8%         Mid-Atlantic
                      Southwest                     Southeast
                        11.9%                         13.5%


California Companies Received 25% of Total Funding
over the past 12 months

                               Great Plains
     $M                           2.9%
                        Northwest 2 9%
                 New York 4.9%
                    6.9%                                      California
          Mid-Atlantic                           California
                                                 C lif i
             7.6%                                 25.7%       New England
                                                              Great Lakes
                     Southwest                                Southwest
                       9 3%
                         Great Lakes               18.4%      New York
                                         New                  Northwest
                                        12.3%                 Great Plains

Internet Sector Dominates Angel Group Deals
over the past 12 months

          34 9%



15%                                                                        12.8%
                                                5 3%
                                                5.3%         4.6%
                                                             4 6%
 5%                                                                 3.6%


            Internet                            Healthcare
            Mobile & Telecom                    Industrial
            Software (non-internet/mobile)      Consumer Products & Services
            Energy & Utilities                  Other

Healthcare Companies Receive the Largest Share of Total Dollars
over the past 12 months

35%        32.7%



15%                                                                   13.2%

                                6.8%   5.8%    5.8%         5.1%
                                                            5 1%


             Healthcare                       Internet
             Mobile & Telecom                 Energy & Utilities
             Industrial                       Software (non-internet/mobile)

Spotlight: Healthcare
Most Active Groups in Healthcare Deals over the past 12 months

                       Pittsburgh, PA

  Palo Alto, CA                                 Austin, TX

                       Columbus, OH

   Tucson, AZ
                                            Southern CA

Most Active Angel Groups: Total Deals for Q1 2012

   Southern CA                               Seattle, WA

                        Boston, MA

     Austin, TX                              Boston, MA

Understanding the Data:
Special Round Types and Industry Sectors

The Halo Report™ is a quarterly report that 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       di             l        i               h              h i l di         deals
Thi report discusses angel group investments over the past 12 months including 602 d l
and $749.7 M total funding including co-investors.
A few slides report on an “Angel Round,” a special classification of investment for 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.

Halo Report Industry Sectors
Internet                       Industrial                     Financial Services
Mobile & Telecom               Automotive & Transportation    Food & Beverages
Software                       Business Products & Services   Leisure
Energy & Utilities             Consumer Products & Services   Media
Computer Hardware & Services   Electronics                    Metals & Mining
Healthcare                     Environmental Services &       Retail
                               Equipment                      Risk & Security

Halo Report Contacts

Angel Resource Institute
Sarah Dickey,
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

Silicon Valley Bank / SVB Accelerator
Carrie Walsh,
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 27 U.S. offices and seven international operations. (Nasdaq: SIVB)
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 S
A           l        l@ bi i ht
     d Sanwal,
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

                                                SVB , SVB>Find
©2012 SVB Financial Group. All rights reserved. SVB>, SVB Find a way, SVB Financial Group, and Silicon Valley
Bank are registered trademarks.
Angel Resource Institute and CB Insights are independent third parties and are not affiliated with SVB Financial
This material, including without limitation to the statistical information herein, is provided for informational purposes
   l The     t i l is based i part on i f
only. Th material i b     d in     t    information f
                                                 ti from thi d
                                                            third-party sources that we believe t b reliable, b t which
                                                                     t          th t     b li    to be li bl but hi h
have not been independently verified by us and for this reason we do not represent that the information is accurate
or complete. 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


To top