Halo report 2012


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Halo report 2012

  1. 1. Table of Contents2012 Highlights p. 4National Trends p. 6Top 10 Angel Groups p. 13Regional Trends p. 16Sector Trends p. 21Super Regional – State Focus p. 24About the Halo Report p. 302
  2. 2. 2012 Highlights3
  3. 3. Angel Group Update: Halo Report 2012Most Active Angel Groups2012 Highlights• Median Angel Round Size is $600K,a dip from 2011, but trending up atyear end• Early Stage Pre-Money ValuationsRemain Steady from 2011• Mobile Sector Gains Share,Healthcare Drops in Deals andDollars• Angels Diversify: Northwest andSouthwest Regions Gain Share ofDeals and Dollars, California LosesShare4Rank Group Hometown1 New York Angels New York, NY2 Tech Coast Angels Southern CA3 LaunchpadVenture GroupBoston, MA4 Central TexasAngel NetworkAustin, TX5 Golden Seeds CA, MA, NY6 Sand Hill Angels Sunnyvale, CA7 Investors’ Circle National Group8 Alliance of Angels Seattle, WA9 CommonAngels Boston, MA10 Maine Angels Portland, ME
  4. 4. National Trends5
  5. 5. Median Angel Round Size Dips Slightly for the Year…$0.00$0.50$1.00$1.502010 2011 2012Median Round Size Mean Round Size6*Angel rounds include angels & angel groups only$980K$900K$990K$500K$625K $600K$M
  6. 6. … But Trending Up at Year EndMedian Angel Round Size Reaches Five Quarter High in Q4 2012$0.00$0.50$1.00$1.50Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012Median Round Size Mean Round Size7*Angel rounds include angels & angel groups only$950K $950K $900K$1.25M$850K$500K $550K $550K$620K $690K$M
  7. 7. Median Early Stage Pre-Money Valuation Stays the Same in 20128*Including all rounds with angel groups before Series A$2.5MMedian$1.5M1st Quartile$3.7M3rd Quartile$0.11M$6.6M
  8. 8. Median Round Size Dips to $1.5M when Angel Groups Co-Investwith Other Types of Investors$1.92$1.63$1.50$3.58 $3.39$2.97$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.002010 2011 2012Median Round Size Mean Round Size9$MAngels with Other Investors
  9. 9. 41.4%63.5% 69.3%58.6%36.5% 30.7%0%20%40%60%80%100%2010 2011 2012Not Co-Invested Angel Group Co-Investment10Share of Co-Invested Angel Group Deals Increases
  10. 10. Also of NoteMore Convertible Debt Deals in 201211% of 2012 Deals were Convertible Debt; up from 6% in 2011Majority of Invested Companies Have Revenue63% of 2012 angel group deals were in companies with revenueAngel Groups Invest in New Companies in 201256% of 2012 angel group deals are in new companies; stable with 55% in 201111
  11. 11. Top Ten Angel Groups 201212
  12. 12. Most Active Angel Groups 2012 - Deals13New York AngelsNew York, NYTech Coast AngelsSouthern CaliforniaLaunchpad Venture GroupBoston, MACentral Texas Angel NetworkAustin, TXGolden SeedsNY, MA, CASand Hill AngelsSunnyvale, CAInvestors’ CircleNational GroupAlliance of AngelsSeattle, WACommonAngelsBoston, MAMaine AngelsPortland, ME1st2nd3rd4th5th6th7th8th9th10th2011New201120112011201120112011201120112011New5thNew6th9th1st2nd4th7th
  13. 13. Most Active Angel Groups in Each Region 2012 - Deals14
  14. 14. Regional Trends15
  15. 15. Angel Investment Deals Distributed NationallyShare of Angel Group Deals by Region 201216California18.1%Northwest9.3%Southwest13.3%Great Plains5%Great Lakes12.2%Southeast13.5%Mid-Atlantic8.3%NewEngland12.7%New York7.2%
  16. 16. 21.0% 18.1%14.1%12.7%11.4%13.5%12.8%12.2%11.4% 13.3%7.8% 9.3%8.7% 8.3%5.0%6.1% 7.2%0%10%20%30%40%50%60%70%80%90%100%2011 2012New YorkGreat PlainsMid-AtlanticNorthwestSouthwestGreat LakesSoutheastNew EnglandCalifornia4.5%Regional Deal Activity Stable: Some growth in Southeast, Southwest &NorthwestShare of Angel Group Deals by Region 2012 vs 201117
  17. 17. Investment Dollars Spreading Further Outside of CaliforniaShare of Angel Group Dollars by Region 201218Indicates a drop in share from 2011Indicates an increase in share from 2011Indicates no change from 2011California23.1%Northwest6.3%Southwest11%Great Plains4.4%Great Lakes12.3%Southeast10.8%Mid-Atlantic14.8%NewEngland14.8%New York7.2%
  18. 18. 31.0%23.1%12.8%14.8%18.5%10.8%10.1%12.3%7.9%11.0%3.1%6.3%6.7%10.2%4.4%6.7% 7.2%0%10%20%30%40%50%60%70%80%90%100%2011 2012New YorkGreat PlainsMid-AtlanticNorthwestSouthwestGreat LakesSoutheastNew EnglandCalifornia2.2%Regional Share of Investment Dollars Up For Most; Declines in California & SoutheastShare of Angel Group Dollars by Region 2012 vs 201119
  19. 19. Sector Trends20
  20. 20. 32.8% 31.9%24.6%20.9%9.3%13.3%7.5% 6.0%1.5% 3.8%3.5% 5.3%4.6% 4.5%16.2% 14.2%0%10%20%30%40%50%60%70%80%90%100%2011 2012OtherSoftwareConsumer Pdcts &SvcsElectronicsIndustrialMobile & TelecomHealthcareInternetShare of Mobile Deals Grows, Healthcare ShrinksShare of Angel Group Deals by Sector 2012 vs 201121
  21. 21. 27.9% 27.3%34.8%26.5%6.7%14.1%5.5% 6.5%1.9%3.9%3.2%17.9%12.6%0%10%20%30%40%50%60%70%80%90%100%2011 2012OtherSoftwareConsumer Pdcts &SvcsElectronicsIndustrialMobile & TelecomHealthcareInternet5.5%Mobile Doubles Share of Dollars, Healthcare Moves to #2Share of Angel Group Dollars by Sector 2012 vs 2011221.4%4.2%
  22. 22. Super Regional – State Trends23
  23. 23. 16.4%3.4%4.3%4.3%19.0%11.2%37.9%11.5%3.1%5.3%7.6%14.5%16.8%35.1%OtherIndustrialConsumer Pdcts & SvcsElectronicsHealthcareMobile & TelecomInternet0% 10% 20% 30% 40%20122011California 2012 Deals: Internet Down Slightly & Mobile Moves to #224
  24. 24. 12.8%7.7%6.4%9.0%12.8%17.9%33.3%14.1%3.3%4.3%6.5%15.2%16.3%40.2%OtherSoftwareIndustrialEnergy & UtilitiesMobile & TelecomHealthcareInternet0% 10% 20% 30% 40% 50%20122011New England 2012 Deals: Internet Deals are 40% of Activity25
  25. 25. 15.5%1.4%4.2%4.2%14.1%32.4%28.2%14.6%5.6%5.6%7.9%9.0%27.0%30.3%OtherConsumer Pdcts & SvcsSoftwareMobile & TelecomIndustrialHealthcareInternet0% 5% 10% 15% 20% 25% 30% 35%20122011Great Lakes 2012 Deals: Internet Grows a Bit, Healthcare & Industrial Cool26
  26. 26. 15.9%1.6%4.8%1.6%4.8%28.6%42.9%18.9%4.2%7.4%8.4%9.5%20.0%31.6%OtherEnergy & UtilitiesConsumer Pdcts & SvcsMobile & TelecomFood & BeveragesInternetHealthcare0% 10% 20% 30% 40% 50%20122011Southwest 2012 Deals: Regional Investments Diversify,Healthcare & Internet are Down27
  27. 27. 20.6%3.2%6.3%7.9%9.5%28.6%23.8%14.3%4.1%5.1%7.1%18.4%20.4%30.6%OtherFood & BeveragesIndustrialSoftwareMobile & TelecomHealthcareInternet0% 10% 20% 30% 40%20122011Southeast 2012 Deals: Internet Deals Replace Healthcare at #1,Mobile Deals Double28
  28. 28. About the Halo Report™29
  29. 29. What is the Halo Report™?Angel Group Investment Trends: The Angel Resource Institute, Silicon Valley Bank andCB Insights set out to raise awareness of early stage investment activities by angelinvestment groups. The Halo Report is the result. The research series highlights angelinvestment activity and trends in North America and provides much sought after data thathas not been previously available to entrepreneurs or early stage investors.The Halo Report includes aggregate analysis of investment activity by angels and angelgroups and highlights trends in round sizes, location and industry preferences. The data iscollected via survey and aggregation of public data using CB Insights innovative dataanalyses.Get Involved: Angel groups and individual angel investors interested in including their datain the Halo Report should contact Sarah Dickey, ARI Research Director: 913-894-4700 andsdickey@angelcapitalassociation.org.30
  30. 30. Understanding the Data:Special Round Types and Industry SectorsThe 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 oneangel group participating and may include other types of investors in those rounds.This report discusses angel group investment trends for 2012 representing a total of 783deals and $1.1B in total rounds including co-investorsA few slides report on an “Angel Round”, a special classification of investment for whenangel 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 ornoted as a change in activity.31InternetMobile & TelecomSoftwareEnergy & UtilitiesComputer Hardware & ServicesHealthcareIndustrialAutomotive & TransportationBusiness Products & ServicesConsumer Products & ServicesElectronicsEnvironmental Services &EquipmentFinancial ServicesFood & BeveragesLeisureMediaMetals & MiningRetailRisk & SecurityHalo Report Industry Sectors
  31. 31. Angel Resource InstituteSarah Dickey, sdickey@angelcapitalassociation.orgThe Angel Resource Institute (ARI) is a charitable organization devoted to education, mentoring and research in thefield of angel investing, a growing driver of our entrepreneurial economy. ARI was founded by the Ewing MarionKauffman Foundation. The programs of ARI include educational workshops and seminars, research projects andreports, and information about angel investing for the general public. ARI is affiliated with the Angel CapitalAssociation, the professional association of angel groups in North America. More information is available atwww.angelresourceinstitute.org.Silicon Valley BankCarrie Walsh, cwalsh@svb.comSilicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity andpremium 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 sixinternational 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. SVBFinancial Group is also a member of the Federal Reserve System.CB InsightsAnand Sanwal, asanwal@cbinsights.comCB Insights is a National Science Foundation-backed data-as-a-service firm that collects information on privatecompanies and their investors and acquirers. CB Insights data and technology is used by firms to make bettermarketing, procurement, lending, acquisition and equity investment decisions and to gather data-driven market andcompetitive intelligence. The firms 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 Contacts32
  32. 32. 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. Theinformation should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment orother decision. You should obtain relevant and specific professional advice before making any investment decision. Nothingrelating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investmentor to engage in any other transaction.©2013 SVB Financial Group. All rights reserved. SVB>, SVB Financial Group, and Silicon Valley Bank are registeredtrademarks.33