angel investor groups rankings

8/10/2019 Angel Investor Groups Rankings

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ugust 13, 2014

Ranking Angel Investment Groups

We analyzed over 350 angel investment groups with the algorithms we use to assess VCfirms. Here's how the top angel investor groups stack up.

How would angel groups fare if evaluated on the criteria we use to evaluate VC funds? Weapplied our Investor Mosaicalgorithms to answer this and other questions about elite angelinvestment groups. For reference, Investor Mosaic takes into account factors such as pastperformance, network strength (who they know), selection aptitude and brand among otherfactors, and quantifies them to score and quantitatively rank investors. Specifically, welooked at 370 angel groups that have made at least one investment over the past two years.

The top-ranked group is Life Science Angels and also includes well known names like NewYork Angels and Sand Hill Angels, as well as more geographically-specific groups likeMaine Angels, Central Texas Angel Network, and Pasadena Angels.

The full analysis highlights who the top angels are and then details some of the InvestorMosaic dimensions that may be of interest and some other trends among the top angelinvestors:


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Who are the top 20 angel groups? Which angel groups have the best network? Which angel groups have the highest investment follow-on rate? Which sectors are the top 20 angel groups focused on?

Where are the top 20 angel groups investing geographically?

Life Science Angels top angel group rankings

Life Science Angels ranked first among all angel groups based on Investor Mosaic. Thehealthcare-focused angel group based out of Silicon Valley has invested in Zogenix, apharmaceutical company which went public in 2010, as well as Nanostim, a medical devicewhich was acquired by St. Jude Medical for up to $188.5M, among others.

Queen City Angels and Boston Harbor Angels rounded out the top 3 as both their hit rateand exits were among the best of all angel groups. Cincinatti-based Queen City Angelsnotable investments included a pair of Ohio-based healthcare companies in Akebia

Therapeutics, a biopharmaceutical company that went public in March 2014 at a $310.9Mvaluation, and Aerpio Therapeutics, a clinical-stage biopharmaceutical company focused ontherapies for vascular diseases.

Boston Harbor Angels notable investments also featured a biotech insulin company SmartCells, which was acquired by Merck for $500M, as well as data storage company Carbonite,which went public in 2011 at a $325M valuation.

In all three cases, the notable investments were in companies that were local to each investorgroup. See below for the full rankings.


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Tech Coast Angels has the strongest network

The network of an investor is incredibly important both for raising additional capital, as wellas strategic expertise in a given area. Tech Coast Angels, which claims to be the largest angelinvestment organization in the US, features over 300 members covering all of SouthernCalifornia and led all angel groups in terms of network centrality a measure of networkstrength. Palisades Ventures was the most prolific follow-on VC for Tech Coast Angels, as

the LA-based VC shares multiple portfolio companies with Tech Coast Angels.

Heading north, Sand Hill Angels ranked second in network centrality among all angel groups.The 100+ member group, which ranked in the top 3 most active angel groups in the Q1 2014Halo Report, most often sees follow-on investments from VCs such as New Venture Partners,DFJ Gotham Ventures, and ECentury Capital. Their recent investments include participationin restaurant tech company NoWaits$10M Series B, as well as Storefronts$7.3M Series A.The full rankings below.


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Maine Angels has the highest follow-on rate

Another factor in evaluating angel groups is their ability to get their portfolio companiesfollow-on funding. When analyzing all angel groups with 10+ investments that were eligiblefor follow-on funding (investment made >13 months ago and which remained private), MaineAngels ranked first with over 80% of all investments raising follow-on funding includingEzCater, Netclarity, JamHub, and others.

Rounding out the top 5 was Launchpad Venture Group, Atlanta Technology Angels,Northern Kentucky Angel Investment Network, and Alliance of Angels. Of note, only 2 of

the top 20 angel groups by follow-on rate were based in California (Sand Hill Angels, LifeScience Angels), a sign that perhaps location in a major market is not the most importantfactor in follow-on fundraising. It also underscores the fact that angel groups help to fill agap in markets where VC may not be as prevalent.


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Internet & Healthcare take the majority of the deal share

On a sector basis, the top 20 angel groups have invested heavily in both Internet andHealthcare startups since 2011 with the two sectors combining for 55% of all deals in thetimeframe. Healthcare and Internet investments were spread across 1100 deals with roundstotaling over $2.7B. Practice Fusionis a high flyer which Band of Angels invested in andwhich received a recent $85M investment from top tier VC firms including Kleiner PerkinsCaufield & Byers and Felicis Ventures.

Within the Healthcare Sector, Life Science Angels has participated in 4 of the 5 largestrounds including investments in Zogenix, CoMentis, and PixelOptics. The full breakdownbelow.


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California accounts for 1/3 of deals, but geographic diversity remains high

California led all states in terms of deal share of the top 20 angel groups investments since2011 at 33%, with 7 of the top 20 angel groups being based in CA. Massachusetts andWashington rounded out the top 3 with a 13% deal share each, with 3 of the 20 groups beingbased in MA (Golden Seeds, Launchpad Venture Group, Boston Harbor Angels), whileAlliance of Angels participated in a high number of local, Washington-based investments.

Overall the top 20 angel groups were very diverse geographically with their headquarters

spanning 10 different states including Arizona (Desert Angels, Arizona Tech InvestorForum), Georgia (Atlanta Technology Angels), New York (New York Angels, TiE Angels),Ohio (Queen City Angels), Pennsylvania (BlueTree Allied Angels), South Carolina (UpstateCarolina Angel Network), and Texas (Central Texas Angel Network), in addition to thepreviously mentioned California, Massachusetts, and Washington.

The geographic diversity is not surprising as angel groups are often dedicated to investmentsin a specific region that might not be as heavily penetrated by larger VC firms as other majormarkets. As the creation of new Micro VC fundscontinues, it will be interesting to see whichangel investors spin out from angel groups to form their own funds, and how that affectsangel groups in more saturated markets moving forward.


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angel investor groups rankings

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