2015 Annual Report - Angel Resource Institute

Presents the
2015 Annual Report
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
2015 Highlights
Angel Group Update: Halo Report Annual 2015 HIGHLIGHTS
•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
National Trends
Median and Mean Round Sizes – Angels Only
2015 Shows Round Sizes Increasing,
Mean Ownership of Angel round is Relatively Stable 20-25%
$1.4
50%
$1,164k
$1.2
$1.0
40%
$833k
$829k
35%
$835k
$0.8
$850k
$0.6
$0.4
45%
30%
25%
20%
$500k
$500k
$510k
15%
10%
$0.2
5%
$0.0
0%
2012
Median Round Size
2013
2014
Mean Round Size
2015
Mean Ownership Percentage
Median and Mean Round Sizes – Angel Co-Investments
Round Sizes Trending Up When Angel Groups Co-Invest With Non-Angels
$2.5
$1.83M
$2.0
$1.91M
$2.00M
Millions USD
$1.70M
$1.5
$1.0
$1.45M
$1.50M
2013
2014
$1.60M
$1.21M
$0.5
$0.0
2012
Median Round Size
Mean Round Size
2015
Median Seed Stage Pre-Money Valuation
Median Valuation Up 53% From 2014, Highest Valuation in HALO History
2014
$13.5M
$23.5M
3rd Quartile:
3rd Quartile:
$4.4M
$7.5M
MEDIAN :
$3.0M
MEDIAN :
$4.6M
1st Quartile:
1st Quartile:
$2.0M
$3.1M
$0.30M
$0.22M
2015
Active Angel Groups
Most Active Angel Groups 2015 – Total Deals
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
National Trends
2015 Share of Angel Group Deals by Region
Great Lakes
10.3%
Northwest
8.7%
California
20.9%
New York
9.5%
New England
11.9%
Great Plains
Mid-Atlantic
4.3%
4.1%
Southwest
7.9%
Southeast
Texas
10.3%
12.2%
2015 Share of Angel Group Deals by Region
100%
90%
23.6%
20.5%
24.2%
20.9%
80%
70%
60%
50%
11.5%
5.2%
5.5%
11.4%
5.1%
5.6%
6.3%
8.6%
11.6%
40%
9.2%
30%
12.4%
20%
8.9%
10%
0%
11.4%
6.0%
5.8%
6.3%
13.2%
10.6%
10.3%
4.3%
4.1%
11.9%
California
Great Lakes
Great Plains
Mid-Atlantic
New England
9.5%
New York
8.7%
Northwest
6.7%
Southeast
12.2%
Southwest
7.9%
Texas
11.8%
11.6%
8.0%
9.2%
7.8%
7.2%
8.0%
6.9%
10.3%
2012
2013
2014
2015
2015 Share of Angel Group Dollars by Region
Great Lakes
12.2%
Northwest
9.8%
California
17.9%
New York
7.5%
New England
15.0%
Great Plains
Mid-Atlantic
3.9%
4.2%
Southwest
9.9%
Southeast
Texas
6.9%
12.8%
2015 Share of Angel Group Dollars by Region
100%
90%
18.5%
80%
12.7%
70%
60%
3.4%
4.4%
11.8%
50%
17.5%
8.1%
5.8%
4.2%
7.3%
10.4%
6.4%
40%
13.5%
12.8%
10%
17.9%
6.5%
5.0%
7.3%
10.6%
9.8%
30%
20%
17.2%
12.5%
15.3%
14.1%
6.3%
8.1%
10.7%
10.5%
5.8%
5.7%
2012
2013
2014
0%
17.9%
12.2%
California
3.9%
4.2%
Great Lakes
15.0%
Mid-Atlantic
Great Plains
New England
7.5%
New York
9.8%
Northwest
Southeast
12.7%
9.9%
6.9%
2015
Southwest
Texas
2015 Percentage of Deals in Region vs. Out of Region by Angel Group HQ Region
Northwest
New England
In: 78.8%
Out: 22.2%
Great Lakes
Great Plains
In: 83.7%
Out: 16.3%
In: 76.0%
Out: 24.0%
California
Southwest
In: 65.8%
Out: 34.2%
In: 76.1%
Out: 23.9%
In: 88.8%
Out: 11.3%
New York
In: 58.5%
Out: 41.5%
Mid-Atlantic
Southeast
Texas
In: 75.9%
Out: 24.1%
In: 79.1%
Out: 20.9%
In: 62.2%
Out: 37.8%
Percentage of Total Investments
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
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Region
In region
Out of region
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
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2013
2014
2015
Sector Trends
Yearly Share of Angel Group Deals by Sector
Software and Healthcare comprise 48% of investments in 2015
100%
90%
29.6%
80%
Software
31.8%
36.5%
33.9%
Commercial Services
70%
11.8%
60%
9.2%
50%
15.2%
40%
5.7%
3.2%
6.6%
3.4%
2.6%
30%
20%
10%
Healthcare
9.4%
21.8%
12.0%
5.8%
5.5%
6.7%
2.2%
2.2%
24.3%
8.7%
Media
11.4%
14.1%
4.9%
3.8%
6.9%
3.6%
1.6%
3.8%
2.4%
7.3%
2.4%
1.9%
Pharma & Biotech
22.1%
25.5%
Energy
Consumer Goods & Recreation
IT Hardware
Other
0%
2012
2013
2014
2015
Yearly Share of Angel Group Dollars by Sector
Healthcare investment continues to rise, Pharma & Biotech declines
100%
90%
22.4%
Software
29.4%
30.8%
30.0%
7.6%
6.4%
80%
70%
11.7%
10.3%
60%
50%
40%
30%
16.9%
3.9%
2.8%
10.0%
5.3%
3.3%
20%
10%
23.6%
Healthcare
Media
13.1%
15.9%
5.7%
4.0%
4.8%
3.0%
9.0%
2.8%
3.9%
12.0%
21.8%
5.0%
1.9%
22.9%
3.9%
2.4%
6.3%
2.6%
3.0%
2013
Consumer Goods & Recreation
Pharma & Biotech
IT Hardware
Energy
19.0%
22.6%
2014
2015
Other
0%
2012
Commercial Services
About the Halo Report™
Support the American Angel Campaign!
As proud supporters of angel investor research, the Angel Resource
Institute and Pitchbook encourage 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.
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
HALO Report™ Contact
Angel Resource Institute at Willamette University
Katie Hamburg, [email protected]
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.