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ACA Briefing and Angel Group Stats <ul><li>May 20, 2008 </li></ul>
Summary of ACA Membership – May, 2008 <ul><li>Full Members   147 </li></ul><ul><li>Provisional Members   18 </li></ul><ul>...
Affiliates Full Members Provisional Members Members and Affiliates – April, 2008
Source:  2008 ACA Angel Group Confidence Survey 2007 Group Investment Data <ul><li>10% increase in average investment per ...
Average Size Investment Per Round - 2007 Percent of Groups Source:  2008 ACA Angel Group Confidence Survey
Investment Preference – 2007-2008 Source:  2008 ACA Angel Group Confidence Survey  Percent of Groups
Preferred Investment/Company Stage – 2007-2008 Percent of Groups Source:  2008 ACA Angel Group Confidence Survey
Geography – Where do Groups Invest? Percent of Groups Source:  2008 ACA Angel Group Confidence Survey
2008 Prediction:  Overall Investment Activity Source:  2008 ACA Angel Group Confidence Survey Percent of Groups
2008 Prediction: How Many New Companies Will You Invest In? Source:  2008 ACA Angel Group Confidence Survey Percent of Gro...
2008 Prediction: How Will Conditions for Liquidity Change? Source:  2008 ACA Angel Group Confidence Survey Percent of Groups
Co-Investment/ Follow-On Preferences Percent of Groups Source:  2008 ACA Angel Group Confidence Survey
Investors Per Group Source:  2008 ACA Confidence Survey Average = 55 Median  = 41 Percent of Groups
Organization Types For Profit 48%   (54 groups) Non Profit 35% (39 groups) No Structure 17%   (20 groups) Groups Source:  ...
May 2007 Source:  Membership Applications, 2006-2007 Angel Networks Networks w/Sidecar Funds Angel Funds ACA Membership:  ...
Trends Among ACA Member Groups <ul><li>University-connected angel groups </li></ul><ul><li>Green/ clean-tech focus </li></...
New Activities and Member Benefits <ul><li>Public policy committee – education/ policy leadership </li></ul><ul><li>Region...
Best Practice Guidance Papers <ul><li>Board Governance </li></ul><ul><li>Negotiating Deal Terms </li></ul><ul><li>VC – Ang...
Angel Group Financial Performance Research <ul><li>Angel Capital Education Foundation, paid by Kauffman Foundation </li></...
Profile of Angels - Median <ul><li>Years investing 9 </li></ul><ul><li>Number of investments 10 </li></ul><ul><li>Total ex...
<ul><li>Heavily Concentrated in EARLY investments </li></ul><ul><ul><li>34% seed stage, 39% startup, 18% early growth </li...
Distribution of Returns by Venture Investment 35%   - 0X Overall Multiple:  2.6X Avg Holding Period: 3.5 years Average IRR...
The Impact of Time in Due Diligence Overall Multiple for High Diligence 5.9X (4.1years) Overall Multiple for Low Diligence...
Relationship to Industry Expertise 50% of deals were not related.  When related, they typically had 14 years of experience...
Impact of Participation Mentoring, Board, Financial Monitoring High = 1 or 2 times per  month Low = 1 or 2 times per  year...
Relationship with Follow On Investment ( Same Angel ) No 3.6X (3.3 years) Yes 1.4X (3.9 years) 30% of deals had follow on ...
Venture Capital Involvement 35% of deals took on VC investment at some point
Thoughts and Questions? <ul><li>We’ll continue developing new programs for angel groups through: </li></ul><ul><ul><li>ACA...
Need More Information? Marianne Hudson Angel Capital Association 8527 Bluejacket St Lenexa, KS  66214 913-894-4703 [email_...
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Transcript of "Download the full briefing on Angel activity from the ACA for ..."

  1. 1. ACA Briefing and Angel Group Stats <ul><li>May 20, 2008 </li></ul>
  2. 2. Summary of ACA Membership – May, 2008 <ul><li>Full Members 147 </li></ul><ul><li>Provisional Members 18 </li></ul><ul><li>Investors in Member Groups 6,800 </li></ul><ul><li>States & Provinces 50 </li></ul><ul><li>Affiliate Organizations 19 </li></ul>
  3. 3. Affiliates Full Members Provisional Members Members and Affiliates – April, 2008
  4. 4. Source: 2008 ACA Angel Group Confidence Survey 2007 Group Investment Data <ul><li>10% increase in average investment per round from 2006, but same number of investments </li></ul><ul><li>66% had follow-on or co-investments with venture capital firms </li></ul><ul><li>25% had distributions to investors </li></ul><ul><li>Pacific Northwest: $2.5 mil in 13.5 companies average ($189K per round) – BUT limited data available </li></ul>
  5. 5. Average Size Investment Per Round - 2007 Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
  6. 6. Investment Preference – 2007-2008 Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
  7. 7. Preferred Investment/Company Stage – 2007-2008 Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
  8. 8. Geography – Where do Groups Invest? Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
  9. 9. 2008 Prediction: Overall Investment Activity Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
  10. 10. 2008 Prediction: How Many New Companies Will You Invest In? Source: 2008 ACA Angel Group Confidence Survey Percent of Groups Companies
  11. 11. 2008 Prediction: How Will Conditions for Liquidity Change? Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
  12. 12. Co-Investment/ Follow-On Preferences Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
  13. 13. Investors Per Group Source: 2008 ACA Confidence Survey Average = 55 Median = 41 Percent of Groups
  14. 14. Organization Types For Profit 48% (54 groups) Non Profit 35% (39 groups) No Structure 17% (20 groups) Groups Source: 2007 ACA Conf survey and membership applications – 113 groups reporting (2006-2007)
  15. 15. May 2007 Source: Membership Applications, 2006-2007 Angel Networks Networks w/Sidecar Funds Angel Funds ACA Membership: Networks and Funds 99 12 17
  16. 16. Trends Among ACA Member Groups <ul><li>University-connected angel groups </li></ul><ul><li>Green/ clean-tech focus </li></ul><ul><li>Women angel groups </li></ul><ul><li>Co-investment – regions, US, cross-border </li></ul><ul><li>Communication with angels world-wide </li></ul><ul><li>Growing relationships with VCs </li></ul>
  17. 17. New Activities and Member Benefits <ul><li>Public policy committee – education/ policy leadership </li></ul><ul><li>Regional/ collaboration committee – networking and co-investment support </li></ul><ul><li>Directors and Officers’ insurance program – Chubb Insurance/AH&T </li></ul><ul><li>Updated membership directory, searchable on-line </li></ul><ul><li>Partnership with National Venture Capital Association </li></ul><ul><li>Research – Returns of Angels in Angel Groups </li></ul><ul><li>Investment data partnership – Dow Jones VentureOne </li></ul><ul><li>Provide us your ideas to build the value of your membership </li></ul>
  18. 18. Best Practice Guidance Papers <ul><li>Board Governance </li></ul><ul><li>Negotiating Deal Terms </li></ul><ul><li>VC – Angel Group Relationships </li></ul><ul><li>State Angel Tax Credit Programs </li></ul><ul><li>Reports will be released after Summit </li></ul>
  19. 19. Angel Group Financial Performance Research <ul><li>Angel Capital Education Foundation, paid by Kauffman Foundation </li></ul><ul><li>Rob Wiltbank (Willamette University) and Warren Boeker (University of Washington) </li></ul><ul><li>First opportunity to understand the ROI of angels connected to angel groups and drivers behind returns </li></ul><ul><li>Released November, 2007 </li></ul><ul><li>Responses: </li></ul><ul><ul><li>538 angels ( accredited investors ) </li></ul></ul><ul><ul><li>3,097 investments </li></ul></ul><ul><ul><li>1,137 exits and closures </li></ul></ul>
  20. 20. Profile of Angels - Median <ul><li>Years investing 9 </li></ul><ul><li>Number of investments 10 </li></ul><ul><li>Total exits/ closures 2 </li></ul><ul><li>Years as entrepreneur 14.5 </li></ul><ul><li>Number ventures founded 2.7 </li></ul><ul><li>Age 57 </li></ul><ul><li>Percent of wealth in angel investing 10% </li></ul><ul><li>Education Masters degree </li></ul>
  21. 21. <ul><li>Heavily Concentrated in EARLY investments </li></ul><ul><ul><li>34% seed stage, 39% startup, 18% early growth </li></ul></ul><ul><ul><li>45% had no revenues when the initial investment was made </li></ul></ul><ul><ul><ul><ul><li>Invested Returned </li></ul></ul></ul></ul><ul><li>Dollars per deal: $50K $40K median </li></ul><ul><li>$191K $486K mean </li></ul>Group-Affiliated Angel Investments
  22. 22. Distribution of Returns by Venture Investment 35% - 0X Overall Multiple: 2.6X Avg Holding Period: 3.5 years Average IRR: 27% 3 yr 3.3 yr 4.6 yr 4.9 yr 6 yr
  23. 23. The Impact of Time in Due Diligence Overall Multiple for High Diligence 5.9X (4.1years) Overall Multiple for Low Diligence 1.1X (3.4 years) Median: 20 hours 26% involved over 40 hours
  24. 24. Relationship to Industry Expertise 50% of deals were not related. When related, they typically had 14 years of experience High 3.7X (4.0 years) Low 1.3X (3.6 years)
  25. 25. Impact of Participation Mentoring, Board, Financial Monitoring High = 1 or 2 times per month Low = 1 or 2 times per year High 3.7X (4.0 years) Low 1.3X (3.6 years)
  26. 26. Relationship with Follow On Investment ( Same Angel ) No 3.6X (3.3 years) Yes 1.4X (3.9 years) 30% of deals had follow on investments
  27. 27. Venture Capital Involvement 35% of deals took on VC investment at some point
  28. 28. Thoughts and Questions? <ul><li>We’ll continue developing new programs for angel groups through: </li></ul><ul><ul><li>ACA Annual Members Meeting at Summit </li></ul></ul><ul><ul><li>Regional meetings </li></ul></ul><ul><ul><li>Surveys </li></ul></ul><ul><ul><li>Open to ongoing suggestions </li></ul></ul>
  29. 29. Need More Information? Marianne Hudson Angel Capital Association 8527 Bluejacket St Lenexa, KS 66214 913-894-4703 [email_address] www.angelcapitaleducation.org www.angelcapitalassociation.org
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