why angels invest
deconstructing the data
behind $16.5M of invested
capital
The Extraction
In the first half of 2009 nearly 1,500 new
ventures were screened by Angel investors.
From that pool, 29 investment opportunities
from all across the United States were
reviewed using a web based venture analysis
application that collected 140 points of
quantitative and qualitative data on each
company.
This report is the reduction of that data, and
attempts to uncover which specific attributes
influenced the decisions that led to the
investment of $16,550,000.
© 2009 Venture 360 Oakland | Los Angeles Phone: 510.465.0800 Web: www.venture360report.com Email: analyst@venture360report.com

Report Contents Uncovering The Drivers of Investor Decisions
 Key Findings & Methodology “Why Angels Invest“ is the most comprehensive collection of
 Score Distribution of 29 Ventures concrete data ever amassed on early-stage venture funding
 Industry Segmentation decisions. The report‘s goal is to provide investors with the data they
 Geographical Distribution
need to make more informed investment decisions today, and to
 Overall Scoring Trends
help them become more efficient investors over time.
 Category Score Analysis
 Key Investor Insights
For individual investors this data can help cut through the emotional
bias or stated investment intentions, and identify the actual venture
attributes behind their investment decision making patterns.
The data driven insights in this report help inform investors about
potential divergence from their proposed investment strategy, and
their actual investment decisions. The report also helps provide
visibility into current market trends across a broad pool of deals that
were reviewed using a standardized form of measurement.
Venture Analysis Data: Deconstructed
Visual Insights Into Venture Analysis Data
Overall scores, geographic and industry distributions, as well
as influential attribute rankings.
© 2009 Venture 360 Oakland | Los Angeles Phone: 510.465.0800 Web: www.venture360report.com Email: analyst@venture360report.com
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The Big Numbers
The data in the report is compiled from
the venture analysis work from 16
different Angel investor analysts who
collectively spent an estimated 1,305
“man hours“ screening and analyzing
ventures.
The total number of initial venture
submissions (1,450) that were manually
screened down to the 29 finalists that
went through the full venture 360 report
analysis process. Of the 29 finalists, 18
ventures received funding.
For each venture, eight core categories
comprising of 80 individual elements
were scored. In addition to scoring,
analysts produced roughly 174 written
pages of insights and other information in
the final venture 360 reports.
The total amount of capital (in US$)
invested into 18 of the 29 ventures that
were analyzed using the Venture 360
software in the first half of 2009.
© 2009 Venture 360 Oakland | Los Angeles Phone: 510.465.0800 Web: www.venture360report.com Email: analyst@venture360report.com
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Data Collection Methods Web Based Venture Analysis Software
Each of the 29 ventures scored passed The Venture 360 software used by each of the Angel analysts is a
an initial “human screening“ prior to the web-based venture analysis application that includes an integrated
Angel analyst spending 8-25 additional scoring methodology and comparative charts for each of the 80
hours to perform a full analysis using the venture attributes. The ultimate goal of the analysis platform is to
help investors by providing a repeatable consistent analysis
software.
structure which generates contextual data to accelerate and improve
the often overwhelming venture due diligence process.
The venture analysis application requires
the analyst to input numerical scores for
80 venture attributes which are spread
across 8 major categories.
The tool also provides several text entry
fields where the analyst (or team of
analysts) input written assessments and
insights to support or clarify their
numerical scores.
Each of the analysts have stated more
than 5 years experience in the field of
venture investing, and over 60% have
graduate or advanced degrees in
business or finance.
Venture Analysis Software
© 2009 Venture 360 Oakland | Los Angeles Phone: 510.465.0800 Web: www.venture360report.com Email: analyst@venture360report.com
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Key Insights Across 11 Core Categories
The scoring data from 11 categories provide interesting insights and
correlations that can help create a stronger understanding of the
decision drivers for Angel investors. In the report, each of the criteria
has an individual chart with a unique investor insight.
Category Data Charts
For each of the core categories the venture category scores
are plotted against the amount of capital raised. Linnear
regression lines help identify correlations and insights.
download the free 24 page report
www.venture360report.com
© 2009 Venture 360 Oakland | Los Angeles Phone: 510.465.0800 Web: www.venture360report.com Email: analyst@venture360report.com
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