why angels invest
deconstructing the data
behind $16.5M of invested
capital


The Extraction
In the first half of 2009 nea...
Report Contents                                         Uncovering The Drivers of Investor Decisions
   Key Findings & Me...
The Big Numbers
The data in the report is compiled from
the venture analysis work from 16
different Angel investor analyst...
Data Collection Methods                                Web Based Venture Analysis Software
Each of the 29 ventures scored ...
Key Insights Across 11 Core Categories
                                                    The scoring data from 11 catego...
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Why Angels Invest: Venture 360 Data Report Extraction

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This is an extraction (executive summary) for the Venture 360 Q2 data report. The full 24 page report is available on www.venture360report.com.

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Transcript of "Why Angels Invest: Venture 360 Data Report Extraction"

  1. 1. 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
  2. 2. 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 2
  3. 3. 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 3
  4. 4. 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 4
  5. 5. 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 5

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