Stanford European-US Angel Investor
Groups Mini-Summit
Angel Investing Going Global



Stanford University – School of Eng...
Overview - U.S. Angels
General Characteristics of Angel Market in the U.S.

  • Over 300 Angel Groups in U.S.
  • Estimated $19B Invested in 2008...
Growth in Number of Angel Groups in U.S.

       300

       250

       200

       150

       100

        50

        ...
Typical Profile of What Angels Invest In
  • Product is developed or near completion
  • Company has existing customers or...
Stage U.S. Angel Groups are Investing In
                                               Startup
                          ...
Where are U.S. Angel Groups Investing?
                                                     Business
                     ...
Average Preferred Investment per Round
(per Group)
            < $150,000

  $150,000 - $250,000

  $250,000 - $500,000

 ...
Angel Group Investment Structure
                                   Network/Sidecar
                                      ...
Groups Led by Members or Hired Managers
                                             Both (3.4%)




                 Mana...
U.S. Angel Group Organizational Structures
                                                                               ...
Typical Deal Process for an Angel Group

                       Screening Team General Meeting
   Submissions             ...
Co-Investment and Follow on Preferences
      Individual angels

     Other angel groups

         Early-stage VC

       ...
Angel Capital Association
 • Professional association of angel investing groups in
   North America
 • Mission: Support th...
Summary of ACA Membership – April, 2009

  Full Members                       146
  Provisional Members                16
...
Members and Affiliates – April, 2009




                                     Full Members
                               ...
Questions?

Laurie Lumenti Garty    Marianne Hudson
Managing Director       Executive Director
SVB Capital             Ang...
Angel Investing in the USA - Laurie Lumenti Garty Marianne Hudson SVB ACA Stanford May1809
Upcoming SlideShare
Loading in...5
×

Angel Investing in the USA - Laurie Lumenti Garty Marianne Hudson SVB ACA Stanford May1809

929

Published on

angel, angel groups, angel networks, angel capital association, svb, investing, vc, usa, aca, stanford, burton lee

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
929
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Angel Investing in the USA - Laurie Lumenti Garty Marianne Hudson SVB ACA Stanford May1809"

  1. 1. Stanford European-US Angel Investor Groups Mini-Summit Angel Investing Going Global Stanford University – School of Engineering May 18, 2009
  2. 2. Overview - U.S. Angels
  3. 3. General Characteristics of Angel Market in the U.S. • Over 300 Angel Groups in U.S. • Estimated $19B Invested in 2008 by All Angels • Fund vs. Network • Focus - Industry Verticals vs. Agnostic • Sophisticated, Casual and Super Angels • Syndicating Deals
  4. 4. Growth in Number of Angel Groups in U.S. 300 250 200 150 100 50 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Sources: Center for Venture Research (pre 03 data) and Kauffman Foundation/ACEF (04-09 data)
  5. 5. Typical Profile of What Angels Invest In • Product is developed or near completion • Company has existing customers or pipeline of potential customers who can validate demand • Entrepreneur has invested own dollars and exhausted other alternatives (including friends and family) • Company is likely to grow rapidly and reach at least $15-30M in revenues in the next 3-7 years • Business plan is well thought out
  6. 6. Stage U.S. Angel Groups are Investing In Startup Profitable 8% 3% Product Shipping Development 53% 36% Source: 2008 ACEF, SVB and Dow Jones Angel Group Data Surveys
  7. 7. Where are U.S. Angel Groups Investing? Business Other Financial Svcs. 6% 18% Consumer Goods 3% Information Technology Consumer Svcs. 35% 6% Energy/ Utilities Industrial Goods 2% Healthcare 5% 25% Source: 2008 ACEF, SVB and DowJones Angel Group Data Surveys
  8. 8. Average Preferred Investment per Round (per Group) < $150,000 $150,000 - $250,000 $250,000 - $500,000 $500,000 - $750,000 > $750,000 0 10 20 30 40 50 Percent of Source: 2009 ACA Angel Group Confidence Survey and 2008 Member Directory Groups
  9. 9. Angel Group Investment Structure Network/Sidecar (7.8%) Fund (22.2%) Network (69.8%) Source: 2008 ACA Member Directory/ 2009 membership applications – 166 groups reporting (2006-2009)
  10. 10. Groups Led by Members or Hired Managers Both (3.4%) Manager (41.1%) Members (54.8%) Source: 2008 ACA Member Directory/ 2009 membership applications – 146 groups reporting (2006-2009)
  11. 11. U.S. Angel Group Organizational Structures No Structure For Profit 59% Non Profit 25% 16% 40 35 30 25 20 15 10 5 0 LLC LP C-Corp 501c3 501c4 501c6 Non-Profit None Source: 2008 ACA Member Directory/ 2009 membership applications – 162 groups reporting (2006-2009)
  12. 12. Typical Deal Process for an Angel Group Screening Team General Meeting Submissions Diligence & Term Manage Review Presentations (~30 Plans Sheet Negotiations (5 – 10 Plans (1 – 3 Plans Investment Per Month) (Coordinated by Per Month) Per Month) Managing Director & Deal Lead) Managing Director Deal lead closes Screening polls members for transaction and Board Managing team votes level of investment the sidecar fund member Director pre- on which interest in deals, invests in represents recruits diligence companies that screens companies to team, and member attract at least emailed invite to facilitates $250K in interests and submissions general selection of deal investment from seeks an meeting lead to begin term at least 5 attractive exit sheet negotiations members Source: James Geshwiler, Common Angels Boston, MA
  13. 13. Co-Investment and Follow on Preferences Individual angels Other angel groups Early-stage VC Later-stage VC Family offices Other private equity No co-investment 0 20 40 60 80 100 Source: 2008 ACA Angel Group Confidence Survey
  14. 14. Angel Capital Association • Professional association of angel investing groups in North America • Mission: Support the growth, financial stability, and investment success of member angel groups. • Professional development • Best practices • Networking • Collaboration strategies • Public policy voice for American angel groups
  15. 15. Summary of ACA Membership – April, 2009 Full Members 146 Provisional Members 16 Accredited Investors in Groups 7,062 States & Provinces 49 Affiliate Organizations 19
  16. 16. Members and Affiliates – April, 2009 Full Members Provisional Members Affiliates
  17. 17. Questions? Laurie Lumenti Garty Marianne Hudson Managing Director Executive Director SVB Capital Angel Capital Association 3000 Sand Hill Road 8527 Bluejacket St Lenexa, KS Building 3, Suite 160 PH: 913-894-4703 Menlo Park, CA mhudson@angelcapitalassociation.org PH: 650.233.4204 www.angelcapitalassociation.org llumenti@svb.com www.svb.com

×