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1 q 2012 halo report finala


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1 q 2012 halo report finala

  1. 1. Angel Group Update: Q1 2012
  2. 2. What is the Halo Report™? Angel Group Investment Trends: The Angel Resource Institute, Silicon Valley Bank and CB Insights set out to raise awareness of early stage investment activities by angel investment groups. The Halo Report is the result. The research series highlights angel investment activity and trends in North America and provides much sought after data that has not been previously available to entrepreneurs or early stage investors. The Halo Report includes aggregate analysis of investment activity by angels and angel groups and highlights trends in round sizes, location and industry preferences. The data is collected via survey and aggregation of public data using CB Insights innovative data analyses. Get Involved: Angel groups and individual angel investors interested in including their data in the Halo Report should contact Sarah Dickey, ARI Research Manager: 913-894-4700 and 2
  3. 3. Angel Group Update Q1 2012: Report HighlightsValuation of Early Deals p.4 Round Size p.5The median pre-money The median size of angel & angelvaluation for pre-Series A deals group syndicate rounds remainsby angel groups is $2.5M in the steady at $700k in Q1 2012 whenpast 12 months compared to the 2011 median.Syndication p.7 Spotlight p.14Angel groups syndicated 75% Most Active Healthcare Angelof Q1 2012 deals showing an Groups & 1Q 2012 Most Activeincreasing trend to co-invest. Groups 3
  4. 4. First Look: Pre-Money Valuations in Angel Group Deals; Median of $2.5M over the last 12 months $4.0M $6.0M $2.5M $1.4M $.56M 1st Median 3rd Quartile Quartile*This includes all rounds with angel groups before Series A 4
  5. 5. Median Angel Round* Size Held Steady at $700K in Q1 2012; After a 40% increase in 2011 over 2010 $M 1Q $0.70 2012 $0.94 $0.70 2011 $1.06 $0.50 2010 $0.98 $0.00 $0.50 $1.00 $1.50 Median Round Size Mean Round Size*Angel rounds include angels & angel groups only 5
  6. 6. Median Round Size is $1.4M when Angel Groups Co-Invest with Other Types of Investors Angels with Other Investors $M 1Q $1.38 2012 $1.95 $1.50 2011 $3.26 $1.95 2010 $3.96 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 Median Round Size Mean Round Size 6
  7. 7. Angel Groups’ Co-Invested Deals Increased in Q1 2012 % 100% 80% 74.5% 63.1% 60% 40% 36.9% 25.5% 20% 0% 2011 1Q 2012 Angel Group Co-Investment Not Co-Invested 7
  8. 8. Angel Group Update Q1 2012: National Activity Snapshot Note: The following data covering regions and sectors is based on activity for the past year (2Q 2012 – 1Q 2011 or April 2011 – March 2012) rather than Q1 2012 only, in order to best demonstrate the angel group activity across the country. 8
  9. 9. Angel Groups are Active Throughout the U.S. over the past 12 months New England Northwest 14.5% ALASKA 8.3% New York 6.2% Great Plains 3.6% Great Lakes 13.8% Mid-Atlantic 9.3% California 18.8% Southwest Southeast 11.9% 13.5%HAWAII 9
  10. 10. California Companies Received 25% of Total Fundingover the past 12 months Great Plains $M Northwest 2.9% New York 4.9% 6.9% California Southeast Mid-Atlantic California 7.6% 25.7% New England Great Lakes Southwest Southwest 9.3% Mid-Atlantic Southeast Great Lakes 18.4% New York 12.0% New Northwest England 12.3% Great Plains 10
  11. 11. Internet Sector Dominates Angel Group Dealsover the past 12 months %40% 34.9%35%30%25% 21.0%20%15% 12.8% 10.8%10% 7.0% 5.3% 4.6% 5% 3.6% 0% Internet Healthcare Mobile & Telecom Industrial Software (non-internet/mobile) Consumer Products & Services Energy & Utilities Other 11
  12. 12. Healthcare Companies Receive the Largest Share of Total Dollarsover the past 12 months $M35% 32.7% 30.5%30%25%20%15% 13.2%10% 6.8% 5.8% 5.8% 5.1% 5% 0% Healthcare Internet Mobile & Telecom Energy & Utilities Industrial Software (non-internet/mobile) Other 12
  13. 13. Spotlight: HealthcareMost Active Groups in Healthcare Deals over the past 12 months Pittsburgh, PA Palo Alto, CA Austin, TX Columbus, OH Tucson, AZ Southern CA 13
  14. 14. Most Active Angel Groups: Total Deals for Q1 2012 Southern CA Seattle, WA Boston, MA Austin, TX Boston, MA 14
  15. 15. Understanding the Data:Special Round Types and Industry SectorsThe Halo Report™ is a quarterly report that provides analysis and trends on US angel andangel group activity.Angels and angel groups invest alone, together, and with many other types of investors.Unless otherwise noted the Halo Report data includes all rounds that have at least one angelgroup participating and may include other types of investors in those rounds.This report discusses angel group investments over the past 12 months including 602 dealsand $749.7 M total funding including co-investors.A few slides report on an “Angel Round,” a special classification of investment for when angelgroups invest alone or just with other angels and angel groups.Unless otherwise noted, values of less than <1% are included, but are not labeled.Halo Report Industry SectorsInternet Industrial Financial ServicesMobile & Telecom Automotive & Transportation Food & BeveragesSoftware Business Products & Services LeisureEnergy & Utilities Consumer Products & Services MediaComputer Hardware & Services Electronics Metals & MiningHealthcare Environmental Services & Retail Equipment Risk & Security 15
  16. 16. Halo Report ContactsAngel Resource InstituteSarah Dickey, sdickey@angelcapitalassociation.orgThe Angel Resource Institute (ARI) is a charitable organization devoted to education, mentoring and research in the field of angelinvesting, a growing driver of our entrepreneurial economy. ARI was founded by the Ewing Marion Kauffman Foundation. Theprograms of ARI include educational workshops and seminars, research projects and reports, and information about angel investingfor the general public. ARI is affiliated with the Angel Capital Association, the professional association of angel groups in NorthAmerica. More information is available at Valley Bank / SVB AcceleratorCarrie Walsh, cwalsh@svb.comSilicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium winebusinesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment andinternational banking services to its clients worldwide through 27 U.S. offices and seven international operations. (Nasdaq: SIVB) Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking servicesare provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a memberof the Federal Reserve System.CB InsightsAnand Sanwal, asanwal@cbinsights.comCB Insights is a National Science Foundation-backed data-as-a-service firm that collects information on private companies and theirinvestors and acquirers. CB Insights data and technology is used by firms to make better marketing, procurement, lending, acquisitionand equity investment decisions and to gather data-driven market and competitive intelligence. The firms data is regularly cited byleading media publications including the New York Times, Forbes, BusinessWeek and Fast Company among others. For moreinformation, visit 16
  17. 17. ©2012 SVB Financial Group. All rights reserved. SVB>, SVB>Find a way, SVB Financial Group, and Silicon ValleyBank are registered trademarks.Angel Resource Institute and CB Insights are independent third parties and are not affiliated with SVB FinancialGroup.This material, including without limitation to the statistical information herein, is provided for informational purposesonly. The material is based in part on information from third-party sources that we believe to be reliable, but whichhave not been independently verified by us and for this reason we do not represent that the information is accurateor complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied onin making an investment or other decision. You should obtain relevant and specific professional advice beforemaking any investment decision. Nothing relating to the material should be construed as a solicitation, offer orrecommendation to acquire or dispose of any investment or to engage in any other transaction. 17