angel investing in today’s economy
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Angel Investing in Today’s Economy. June 12, 2007 Glen Balzer Sand Hill Angels. 2006 Angel Group Investment Data. 72% co-invested with venture capital firms 29% had distributions to investors Investment up 23% from 2005. Source: 2007 ACA Angel Group Confidence Survey. - PowerPoint PPT PresentationTRANSCRIPT
Angel Investing in Today’s Economy
June 12, 2007
Glen Balzer
Sand Hill Angels
Growth in Angel Organizations 1999 - 2006
Sources: Center for Venture Research (pre 03 data) and Kauffman Foundation/ACEF (04-06 data)
Average MedianNumber of investments 7.4 5Total monies invested $1.78 mil $1.06 milDollars invested per round $241,528Dollars invested per angel $31,457Number of new companies 4
Source: 2007 ACA Angel Group Confidence Survey
2006 Angel Group Investment Data
• 72% co-invested with venture capital firms• 29% had distributions to investors• Investment up 23% from 2005
Average Size Investment Per Round
Percent of Groups
Source: 2007 ACA Angel Group Confidence Survey
0 5 10 15 20 25 30 35 40 45
> $750,000
$500,000 to $750,000
$250,000 to $500,000
$150,000 to $250,000
< $150,0000
Preferred Investment/Company Stage
0
10
20
30
40
50
60
70
80
90
Seed/Startup Early Stage Expansion Later Stage
Percent of Groups
Source: 2007 ACA Angel Group Confidence Survey
0
5
10
15
20
25
30
35
40
2 to 10 11 to 25 26 to 50 51 to 75 76 to 100 101+
Investors Per Group
Source: ACA Conf survey and membership applications - 116 groups reporting (2006-2007)
Average = 44 Median = 38
Percentof
Groups
Organization Types
0
5
10
15
20
25
30
35
40
LLC LP C-Corp 501c3 501c4 501c6 Non-Profit None
For Profit 48% (54 groups)
Non Profit 35%(39 groups)
No Structure
17% (20
groups)
Groups
Source: ACA Conf survey and membership applications – 113 groups reporting (2006-2007)
2007 Prediction:
How Many New Companies Will You Invest In?
Source: 2007 ACA Angel Group Confidence Survey
0
10
20
30
40
50
60
None 1 to 2 3 to 5 6 to 9 10 or more
Percent of Groups
Companies
Preliminary Distribution of Outcomes
Loss 47%1 to 4X 26%4 to 6X 15%6 to 30X 8%30X + 4%
Profile of Angels - Median
Years investing 7Number of investments 7Total exits/ closures 1Years as entrepreneur 13Number ventures founded 2Age 57Percent of wealth in angel investing 10%Education Masters degree
-10%
-5%
0%
5%
10%
15%
20%
Year0 1 2 3 4 5 6 7 8 9 10
Source: Utimco
The Power of the J-Curve
Internal Rate
of Return(%)
