This document provides a summary of insights on angel group investing from 2021-2022. It finds that while VC deal activity at the angel and seed stage trended downward in Q1 2023, larger startups with more proven models are still attracting investment. Nationally, VC fund raising slowed in 2023 after continuing in 2022. Exits and exit values have significantly dropped since 2021. The Pacific Northwest attracts less investment than regions like California and New York, though information technology and B2B startups see relatively more funding locally. Pre-money valuations for seed and Series A rounds grew nationally but remained steady in the Northwest. The document also provides data on the diversity of startup founders and leadership.

1. May 17, 2023
Elaine Werffeli
elaine@elaingelinvest.com
Seattle Angel Conference 23
National, Regional & Local
Insights on
Angel Group Investing from 2021 – 2022

2. Sharing Investor Insights
US
Northwest
SEA

4. Despite relative resiliency throughout 2022, VC Deal Activity in
Angel & Seed stage trended downward substantially in Q1 2023
Source: PitchBook Q1 2023 Venture Monitor
Investors that are still willing
to take bets on the earliest
stage startups are primarily
focusing on larger startups
with more proven business
models

5. For the macro view…While VC funds continued to
be raised in 2022, 2023 is off to a slow start
Source: Q1 2023 PitchBook-NVCA Venture Monitor First Look

6. US VC Deal Count & Value continues to
decline each of the last 4 quarters
Source: Q1 2023 PitchBook-NVCA Venture Monitor First Look

7. Exits and Exit Values of VC backed companies
have dropped significantly since 2021
Source: Q1 2023 PitchBook-NVCA Venture Monitor First Look

8. Acquisitions of VC backed companies have hit
a decade low in Q1 2023
Interesting thing is there are still a lot of conversations happening
Source: PitchBook
Startups Right now don’t feel an
immediate pressure to sell and are
biding their time, taking on debt or cost
cutting
Buyers (whether that be to large start
ups, publicly traded companies or PE
investors) are holding out for lower
prices
Much speculation remains as to when valuations will bottom out and acquisitions will pick up again

9. Data Source: 2021 HALO Report
2,016
Deals

10. How does the Pacific Northwest stack up?

11. Follow the Money..From Where? California Angel Groups
are responsible for 30% of $ Invested and 25% of Deals
Seed/Series A Deals and $ invested by investor location
Source: 2021 Halo Report with 2,016 deals
30%
15%
11%
8% 8%
6% 6%
5% 5% 5%
2%
25%
12%
15%
9%
7% 7%
5%
6% 6%
5%
3%
0%
5%
10%
15%
20%
25%
30%
35%
California New York Southeast Southwest Great Lakes Mid-Atlantic Outside US Northwest NorthEast Texas Great Plains
2021 % of Dollars Invested 2021 % of all Seed/Series A Deals

12. 95% 91% 90% 87% 87%
81% 80% 76% 76%
60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
From Where? The vast majority of Northwest Angel Groups deals are
homegrown while Angel Groups in New York aggressively invest
outside their home region 40% of the time
Source: 2021 Halo Report with 2,016 deals

13. To Where: California remains a draw for investors with 18% of
out of home region dollars being invested in companies there.
11% of $ from other regions comes to the Northwest
Where Out of Home Region Deals Go -
% Deals
Where Out of Home Region Deals Go -
% $ Invested
Source: 2021 Halo Report with 2,016 deals

14. 20%
17%
11% 10%
9% 8% 8% 8%
5%
4%
0%
5%
10%
15%
20%
25%
To Where? California & Southeast are the regions where
the largest of all Angel Group backed deals were located.
Source: 2021 Halo Report with 2,016 deals
-5%
9%
13%
-5%
5%
8% -9% -28% -1%
-4%

15. What? Information tech and B2C both tied for top industry
Nationally followed closely by Healthcare and B2B.
Northwest overinvests in Info Tech and B2B
Source: 2021 Halo Report with 2,016 deals
28% 28%
22%
16%
2% 2% 3%
30%
24%
17%
20%
1%
4% 4%
0%
5%
10%
15%
20%
25%
30%
35%
Information Technology Consumer Products and
Services (B2C)
Healthcare & Biotech Business Products &
Services (B2B)
Financial Services Energy/Enviro Materials & Resources
US '21 Northwest' 21

16. $10
$9
$8 $8
$8
$6 $6 $6
$5 $5
$8
$13
$14
$17
$10
$8
$9
$10
$8
$11
$9
$12
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
Seed Round Pre-Money Valuation ( in Millions)
Median Pre-Money Average Pre-Money
How Much? Pre-Money Seed Round Valuations grew double digits
Nationally to a Median of $8M and Average of $12M while
Northwest Median valuation remained at $6M
Source: 2021 Halo Report
25% 37%
25% 25% 50% 3% 38% 125% 60% 45% 7% 20% 26% 25% 0% 32% 0% -7% 6% 125% -17% 10%
YOY Growth%

17. $20 $20 $20
$18
$16 $16
$12 $12 $11
$10
$16
$44
$20
$34
$29
$22 $21
$18
$16
$17 $18
$28
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
Series A Pre-Money Valuations
Series A Median Pre-Money Series A Average Pre-Money
How Much? Pre-Money Series A Round Valuations grew double
digits Nationally to a Median of $16M and Average of $28M while
Northwest Median valuation remained at $16M
Source: 2021 Halo Report
16% 25%
12% 95% 67% -31% -18% 0% 50% 63% -52% -34% 74% 18% 37% 17% 28% 73% -19%-43% -5% 9%
YOY Growth%

18. How Big? Seed Round - Northwest Median Actual Investment
was 50% of Funding Round Size while National Median Actual
was 64% of Funding Round Size
Round Asking Size
Northwest:
• Median = $1.0M
• Average = $4.1M
National:
• Median = $1.25M
• Average = $2.55M
When the Average is larger than the Median value, we have outliers at the high end of the
distribution that are pulling up the averages
Source: 2021 Halo Report with 2,016 deals
Northwest:
• Median = $500K
• Average = $1.5M
National:
• Median = $800K
• Average = $1.7M
Actual Investment
50%
64%

19. How Big? Series A- At this stage Actual Investment came in
very close to the Funding Round Size
Round Asking Size
Northwest:
• Median = $2.5M
• Average = $5.8M
National:
• Median = $3.7M
• Average = $7.2M
When the Average is larger than the Median value, we have outliers at the high end of the
distribution that are pulling up the averages
Source: 2021 Halo Report with 2,016 deals
Northwest:
• Median = $2.5M
• Average = $5.7M
National:
• Median = $3.5M
• Average = $6.5M
Actual Investment
100%
95%

20. 69% 69% 67% 67% 67% 65% 64% 62% 61% 61% 66%
31% 31% 33% 33% 33% 35% 36% 38% 39% 39% 34%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Southeast New York Mid Atlantic Northeast California Great Lakes SouthWest Texas Great Plains Northwest National
New Co Follow-on
How Much? New Co Financing dominates the landscape with
a National Mix of 2/3rds for New Co & 1/3rd for Follow-on
Funding
Source: 2021 Halo Report with 2,016 deals

21. How? Convertible Notes are a key Deal Type for Seed Round
while Preferred Equity represents 3/4ths of Series A
Source: 2021 Halo Report with 2,016 deals
51% 50%
45%
40% 40% 39% 38% 37% 36%
32%
40% 43%
20%
42%
38%
43%
47% 48%
44%
51%
44%
52%
53%
47% 42%
76%
4%
5% 6% 9% 6%
8%
5%
11%
6%
6%
7%
7%
3%
3%
7% 6% 3%
7% 9% 6% 8% 6%
9%
7% 8%
1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Great Plains Northwest Southeast SouthWest New York Mid Atlantic Texas Great Lakes Northeast California National Seed Series A
Convertible Note Preferred Equity Common SAFE

22. Companies with Diverse Executive teams are
more likely to outperform their peers
Source: McKinsey & Company Diversity wins – How Inclusion Matters

23. 26%
11% 11% 9% 9% 9% 8%
6% 5% 4%
0%
5%
10%
15%
20%
25%
30%
% of Female CEOs across Regions
More Who? California has a quarter of all Female
CEOs. Northwest is at the National Average for
Female CEOs at 16%
% of Female CEOs across Regions % of Female CEOs within Region
Source: 2021 Halo Report with 2,198 deals
22%
20%
18%
16% 16%
14% 14% 14%
12%
10%
16%
0%
5%
10%
15%
20%
25%
% of Female CEOs within Regions

24. More Who? California has almost a third of all
Minority CEOs. Northwest is slightly below the
National Average for Minority CEOs
% of Minority CEOs across Regions % of Minority CEOs within Region
Source: 2021 Halo Report with 2,198 deals
29%
13%
12% 10% 9%
6% 5% 5% 5%
2%
0%
5%
10%
15%
20%
25%
30%
35%
% of Minority CEOs across Regions
22% 22% 21%
16%
13%
12% 12%
10%
8% 8%
12%
0%
5%
10%
15%
20%
25%
% of Minority CEOs within Regions

25. Sharing Angel Investor Group Insights
US
Northwest
SEA

26. There is Strong Female Participation in the
majority of Seattle Angel Groups in 2022
Source: Self Reported Angel Groups
45%
34%
29%
21%
19%
12% 12%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
APIS SAC E8 AOA Keiretsu NW TAAC PSVC SWAN
% Female Investors in Seattle Angel Groups - 2022

27. 18 Startup Funders in Seattle that have shared data with us
Funder Type Stage Focus Year Formed
APIS Angel Event Fund Preseed & Seed 2021
Trans Atlantic Angel Conference (TAAC) Angel Event Fund Preseed & Seed 2021
FlyWheel Conference Angel Event Fund Preseed & Seed 2017
Seattle Angel Conference Angel Event Fund Preseed & Seed 2012
Seachange Angel Active Fund Preseed, Seed & Series A 2015
SWAN Angel Network Preseed & Seed 2015
Virtual Angels Network Angel Network Preseed & Seed 2021
Puget Sound Venture Club (PSVC) Angel Network Preseed & Seed 1985
E8 Angels Angel Network Seed & Series A 2006
Alliance of Angels (AOA) Angel Network Preseed, Seed & Series A 1997
Keiretsu Forum NW Angel Network Seed & Series A – Post revenue 2005
First Row Partners Micro VC Preseed & Seed 2019
Startup Haven Micro VC Preseed & Seed 2005
Untapped Capital Micro VC Preseed & Seed 2020
Graham & Walker (G&W) Venture Builder Preseed & Seed 2017
Allen Institute Venture Builder Preseed, Seed & Series A 2016
Pioneer Square Labs Venture Builder Preseed, Seed & Series A 2015
Madrona VC Preseed, Seed, Series A, Series B & Series C 1995

31. Thank You and hope you got a
few new insights to take away
today!