This annual report from 2015 presents key highlights and trends in the angel investment market. Some of the main findings include: - The median pre-money valuation of seed deals reached $4.6 million, a 53% increase from 2014. - Round sizes have been increasing but ownership percentages have remained stable around 20-25%. - New England doubled its share of deals and dollars from the previous year. - Most angel groups invest close to home, with 75-80% of deals occurring within the regional area. California, New York and Mid-Atlantic angels were most likely to invest outside their region. - Software and healthcare comprised about half of all angel group deals in 2015.

1. 2015 Annual Report
Presents the

2. Table of Contents
2015 Highlights, p. 3
National Trends, p.5
Active Angel Groups, p. 9
National Trends, p. 12
Sector Trends, p. 20
About the Halo Report, p. 23

3. 2015 Highlights

4. •Pre-money valuation of seed deals reaches $4.6M, 53% increase from 2014
•Valuation growth and larger round sizes highly related, but percentage
ownership after angel rounds remains relatively stable
•New England has doubled share of deals and dollars nationwide in the past year
•Most angel groups invest close to home
–75% to 80% of investments take place in within the region of the investors
–California, New York, and Mid-Atlantic angels most likely to invest out-of-region
Angel Group Update: Halo Report Annual 2015 HIGHLIGHTS

5. National Trends

6. $500k $500k $510k
$850k
$833k $829k $835k
$1 164k
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
$0,0
$0,2
$0,4
$0,6
$0,8
$1,0
$1,2
$1,4
2012 2013 2014 2015
Median Round Size Mean Round Size Mean Ownership Percentage
Median and Mean Round Sizes – Angels Only
2015 Shows Round Sizes Increasing,
Mean Ownership of Angel round is Relatively Stable 20-25%

7. Median and Mean Round Sizes – Angel Co-Investments
Round Sizes Trending Up When Angel Groups Co-Invest With Non-Angels
$1,21M
$1,45M $1,50M
$1,60M
$1,70M
$1,83M
$1,91M
$2,00M
$0,0
$0,5
$1,0
$1,5
$2,0
$2,5
2012 2013 2014 2015
Millions USD
Median Round Size Mean Round Size

8. Median Seed Stage Pre-Money Valuation
Median Valuation Up 53% From 2014, Highest Valuation in HALO History
$0.22M
$23.5M
MEDIAN :
$4.6M
3rd Quartile:
$7.5M
1st Quartile:
$3.1M
$13.5M
3rd
Quartile:
$4.4M
$3.0M
MEDIAN :
1st
Quartile:
$2.0M
$0.30M
2014 2015

9. Active Angel Groups

10. Most Active Angel Groups 2015 – Total Deals

11. Angel Group Update: Halo Report 2015
Most Active Angel Groups
Total Deals 2015 (descending order)
1. Keiretsu Forum1
2. Tech Coast Angels2
3. Central Texas Angel Network
4. Houston Angel Network
5. Alliance of Angels & New York Angels (tied)
6. Wisconsin Investment Partners
7. Hyde Park Angels & Maine Angels (tied)
8. Desert Angels, Launchpad Venture Group & Sand Hill Angels (tied)
1 Twenty-two chapters; 2 Five chapters

12. National Trends

13. 2015 Share of Angel Group Deals by Region
California
20.9%
Northwest
8.7%
Southwest
7.9%
Great Plains
4.3%
Great Lakes
10.3%
Southeast
12.2%
Mid-Atlantic
4.1%
New England
11.9%
Texas
10.3%
New York
9.5%

14. 2015 Share of Angel Group Deals by Region
7,2% 8,0% 6,9% 10,3%
8,0% 9,2% 7,8%
7,9%
8,9%
11,8% 11,6%
12,2%
12,4%
10,6%
6,7%
8,7%
9,2%
11,6%
13,2%
9,5%
8,6%
6,3%
6,3%
11,9%
5,5%
5,6%
5,8%
4,1%5,2%
5,1%
6,0%
4,3%
11,5%
11,4%
11,4%
10,3%
23,6% 20,5% 24,2% 20,9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
California
Great Lakes
Great Plains
Mid-Atlantic
New England
New York
Northwest
Southeast
Southwest
Texas

15. Northwest
9.8%
Southwest
9.9%
Great Plains
3.9%
Great Lakes
12.2%
Southeast
12.8%
Mid-Atlantic
4.2%
New England
15.0%
Texas
6.9%
New York
7.5%
California
17.9%
2015 Share of Angel Group Dollars by Region

16. 2015 Share of Angel Group Dollars by Region
10,7% 10,5%
5,7% 6,9%
6,3% 8,1%
5,8%
9,9%
12,5% 15,3%
14,1%
12,7%
13,5%
12,8%
9,8%
9,8%
6,4%
10,4%
10,6%
7,5%
11,8%
7,3%
7,3%
15,0%
4,4%
4,2%
5,0%
4,2%
3,4%
5,8%
6,5%
3,9%
12,7%
8,1%
17,9%
12,2%
18,5% 17,5% 17,2% 17,9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
California
Great Lakes
Great Plains
Mid-Atlantic
New England
New York
Northwest
Southeast
Southwest
Texas

17. Northwest
In: 78.8%
Out: 22.2%
2015 Percentage of Deals in Region vs. Out of Region by Angel Group HQ Region
California
In: 65.8%
Out: 34.2%
Southwest
In: 76.1%
Out: 23.9%
Texas
In: 75.9%
Out: 24.1%
Southeast
In: 79.1%
Out: 20.9%
Great Lakes
In: 83.7%
Out: 16.3% New York
In: 58.5%
Out: 41.5%
New England
In: 88.8%
Out: 11.3%
Mid-Atlantic
In: 62.2%
Out: 37.8%
Great Plains
In: 76.0%
Out: 24.0%

18. 2015 Percentage of Investments in Region vs. Out of Region by Angel Group Region
Approximately 3 out of every 4 investments by angels are within their region
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
Percentage of Total Investments
Region
In region Out of region

19. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015
Percentage of Investments Made In-Region by Angel Group Region, 2013-2015
California, Mid-Atlantic, and New York angels invest most frequently outside of region

20. Sector Trends

21. Yearly Share of Angel Group Deals by Sector
Software and Healthcare comprise 48% of investments in 2015
21,8% 24,3% 22,1% 25,5%
2,6%
2,2%
1,6%
1,9%3,4% 2,2%
3,6%
2,4%
6,6% 6,7% 6,9%
7,3%
3,2%
5,5% 3,8%
2,4%
5,7%
5,8%
4,9% 3,8%
15,2% 12,0%
11,4% 14,1%
11,8% 9,4%
9,2%
8,7%
29,6% 31,8% 36,5% 33,9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
Software
Commercial Services
Healthcare
Media
Consumer Goods & Recreation
Pharma & Biotech
IT Hardware
Energy
Other

22. Yearly Share of Angel Group Dollars by Sector
Healthcare investment continues to rise, Pharma & Biotech declines
23,6% 21,8% 19,0% 22,6%
3,3% 3,9%
1,9%
3,0%
5,3% 2,8%
5,0%
2,6%
10,0%
9,0% 12,0% 6,3%
2,8%
4,0% 3,0%
2,4%
3,9%
5,7% 4,8%
3,9%
16,9%
13,1% 15,9% 22,9%
11,7%
10,3% 7,6% 6,4%
22,4%
29,4% 30,8% 30,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015
Software
Commercial Services
Healthcare
Media
Consumer Goods & Recreation
Pharma & Biotech
IT Hardware
Energy
Other

23. About the Halo Report™

24. Support the American Angel Campaign!
As proud supporters of angel investor research, the Angel Resource
Institute encourages all angel investors to participate in The American
Angel campaign, a ground-breaking, comprehensive study that will
benchmark the mix of angel investors across America by age, sex,
ethnicity and pinpoint any commonalities such as the path that got
them there or trends such as how they discover and fund early-stage
companies. The campaign is a partnership between the Angel Capital
Association and Wharton Entrepreneurship. Angel investors who are
interested in participating in the study may sign up to do the survey at
www.TheAmericanAngel.org.

25. Understanding the Data:
Special Round Types and Industry Sectors
The HALO Report™ provides analysis and trends on US angel and angel 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 angel group
participating and may include other types of investors in those rounds.
A few charts report on an “Angel Round,” a special classification of investment when angel
groups invest alone or only with other angels and angel groups.
Unless otherwise noted, values of less than 1% in the industry sectors are included, but are not
labeled directly.
HALO Report™ Industry Sectors
Commercial Services
Consumer Goods &
Recreation
Energy
Healthcare
IT Hardware
Media
Pharma & Biotech
Software
Other

26. Katie Hamburg, khamburg@angelresource.org
The Angel Resource Institute (ARI) is a 501(c)(3)charitable organization devoted to education, mentoring and research in
the field of angel investing, housed at Willamette University. ARI was founded by the Ewing Marion Kauffman Foundation,
and is a sister organization of the Angel Capital Association, the professional association of angel groups in North America.
The programs of ARI include educational workshops and seminars, research projects and reports, and information about
angel investing for the general public. More information is available at: www.angelresourceinstitute.org
PitchBook
PitchBook is an impartial private equity and venture capital research firm that provides premium data, news and analysis.
Through a combination of publicly available sources and rigorous firsthand research with industry professionals,
PitchBook has developed an extensive database with in-depth information and statistics on hundreds of thousands of
companies, deals, investors, service providers and limited partners.
Willamette University MBA
Willamette University MBA is a leader in early stage investment research and entrepreneurship. In addition to being the
home of the Angel Resource Institute, Willamette launched the world’s first student run angel investment fund in 2008.
Willamette faculty and researchers published the world’s largest and most cited study on angel investor returns, Returns
to Angel Investors in Groups (2007), and one of the most widely used textbooks on entrepreneurship, Effectual
Entrepreneurship (2011). They also perform data analysis for the HALO Report.
HALO Report™ Contact
Angel Resource Institute at Willamette University