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  • 1. ACA Briefing and Angel Group Stats
    • May 20, 2008
  • 2. Summary of ACA Membership – May, 2008
    • Full Members 147
    • Provisional Members 18
    • Investors in Member Groups 6,800
    • States & Provinces 50
    • Affiliate Organizations 19
  • 3. Affiliates Full Members Provisional Members Members and Affiliates – April, 2008
  • 4. Source: 2008 ACA Angel Group Confidence Survey 2007 Group Investment Data
    • 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
  • 5. Average Size Investment Per Round - 2007 Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
  • 6. Investment Preference – 2007-2008 Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
  • 7. Preferred Investment/Company Stage – 2007-2008 Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
  • 8. Geography – Where do Groups Invest? Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
  • 9. 2008 Prediction: Overall Investment Activity Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
  • 10. 2008 Prediction: How Many New Companies Will You Invest In? Source: 2008 ACA Angel Group Confidence Survey Percent of Groups Companies
  • 11. 2008 Prediction: How Will Conditions for Liquidity Change? Source: 2008 ACA Angel Group Confidence Survey Percent of Groups
  • 12. Co-Investment/ Follow-On Preferences Percent of Groups Source: 2008 ACA Angel Group Confidence Survey
  • 13. Investors Per Group Source: 2008 ACA Confidence Survey Average = 55 Median = 41 Percent of Groups
  • 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. May 2007 Source: Membership Applications, 2006-2007 Angel Networks Networks w/Sidecar Funds Angel Funds ACA Membership: Networks and Funds 99 12 17
  • 16. 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
  • 17. New Activities and Member Benefits
    • Public policy committee – education/ policy leadership
    • Regional/ collaboration committee – networking and co-investment support
    • Directors and Officers’ insurance program – Chubb Insurance/AH&T
    • Updated membership directory, searchable on-line
    • Partnership with National Venture Capital Association
    • Research – Returns of Angels in Angel Groups
    • Investment data partnership – Dow Jones VentureOne
    • Provide us your ideas to build the value of your membership
  • 18. Best Practice Guidance Papers
    • Board Governance
    • Negotiating Deal Terms
    • VC – Angel Group Relationships
    • State Angel Tax Credit Programs
    • Reports will be released after Summit
  • 19. Angel Group Financial Performance Research
    • Angel Capital Education Foundation, paid by Kauffman Foundation
    • Rob Wiltbank (Willamette University) and Warren Boeker (University of Washington)
    • First opportunity to understand the ROI of angels connected to angel groups and drivers behind returns
    • Released November, 2007
    • Responses:
      • 538 angels ( accredited investors )
      • 3,097 investments
      • 1,137 exits and closures
  • 20. Profile of Angels - Median
    • Years investing 9
    • Number of investments 10
    • Total exits/ closures 2
    • Years as entrepreneur 14.5
    • Number ventures founded 2.7
    • Age 57
    • Percent of wealth in angel investing 10%
    • Education Masters degree
  • 21.
    • Heavily Concentrated in EARLY investments
      • 34% seed stage, 39% startup, 18% early growth
      • 45% had no revenues when the initial investment was made
          • Invested Returned
    • Dollars per deal: $50K $40K median
    • $191K $486K mean
    Group-Affiliated Angel Investments
  • 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. 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. 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. 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. 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. Venture Capital Involvement 35% of deals took on VC investment at some point
  • 28. Thoughts and Questions?
    • We’ll continue developing new programs for angel groups through:
      • ACA Annual Members Meeting at Summit
      • Regional meetings
      • Surveys
      • Open to ongoing suggestions
  • 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