2015AnnualReport

Presentsthe

TableofContents

2015Highlights,p.3NationalTrends,p.5ActiveAngelGroups,p.9NationalTrends,p.12SectorTrends,p.20AbouttheHaloReport,p.23

2015Highlights

•Pre-moneyvaluationofseeddealsreaches$4.6M,53%increasefrom2014

•Valuationgrowthandlargerroundsizeshighlyrelated,butpercentageownershipafterangelroundsremainsrelativelystable

•NewEnglandhasdoubledshareofdealsanddollarsnationwideinthepastyear

•Mostangelgroupsinvestclosetohome–75%to80%ofinvestmentstakeplaceinwithintheregionoftheinvestors–California,NewYork,andMid-Atlanticangelsmostlikelytoinvestout-of-region

AngelGroupUpdate:HaloReportAnnual2015HIGHLIGHTS

NationalTrends

$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

MedianRoundSize MeanRoundSize MeanOwnershipPercentage

MedianandMeanRoundSizes– AngelsOnly2015ShowsRoundSizesIncreasing,MeanOwnershipofAngelroundisRelativelyStable20-25%

MedianandMeanRoundSizes– AngelCo-InvestmentsRoundSizesTrendingUpWhenAngelGroupsCo-InvestWithNon-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

MillionsUSD

MedianRoundSize MeanRoundSize

MedianSeedStagePre-MoneyValuationMedianValuationUp53%From2014,HighestValuationinHALOHistory

$0.22M

$23.5M

MEDIAN :

$4.6M

3rd Quartile:

$7.5M

1st Quartile:

$3.1M

$13.5M

3rd Quartile:

$4.4M

$3.0MMEDIAN :

1st Quartile:

$2.0M

$0.30M

2014 2015

ActiveAngelGroups

MostActiveAngelGroups2015– TotalDeals

AngelGroupUpdate:HaloReport2015

MostActiveAngelGroupsTotalDeals2015(descendingorder)1. KeiretsuForum1

2. TechCoastAngels2

3. CentralTexasAngelNetwork4. HoustonAngelNetwork5. AllianceofAngels&NewYorkAngels(tied)6. WisconsinInvestmentPartners7. HydeParkAngels&MaineAngels(tied)8. DesertAngels,LaunchpadVentureGroup&SandHillAngels(tied)

1 Twenty-twochapters;2 Fivechapters

NationalTrends

2015ShareofAngelGroupDeals byRegion

California

20.9%

Northwest

8.7%

Southwest

7.9%

GreatPlains

4.3%

GreatLakes

10.3%

Southeast

12.2%

Mid-Atlantic

4.1%

NewEngland

11.9%

Texas

10.3%

NewYork

9.5%

2015ShareofAngelGroupDeals byRegion

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

GreatLakes

GreatPlains

Mid-Atlantic

NewEngland

NewYork

Northwest

Southeast

Southwest

Texas

Northwest

9.8%

Southwest

9.9%

GreatPlains

3.9%

GreatLakes

12.2%

Southeast

12.8%

Mid-Atlantic

4.2%

NewEngland

15.0%

Texas

6.9%

NewYork

7.5%

California

17.9%

2015ShareofAngelGroupDollars byRegion

2015ShareofAngelGroupDollars byRegion

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

GreatLakes

GreatPlains

Mid-Atlantic

NewEngland

NewYork

Northwest

Southeast

Southwest

Texas

Northwest

In:78.8%Out:22.2%

2015PercentageofDealsinRegionvs.OutofRegionbyAngelGroupHQRegion

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%

GreatLakes

In:83.7%Out:16.3% NewYork

In:58.5%Out:41.5%

NewEngland

In:88.8%Out:11.3%

Mid-Atlantic

In:62.2%Out:37.8%

GreatPlains

In:76.0%Out:24.0%

2015PercentageofInvestmentsinRegionvs.OutofRegionbyAngelGroupRegionApproximately3outofevery4investmentsbyangelsarewithintheirregion

0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0%

100,0% Percen

tageofTotalInvestmen

ts

Region

Inregion Outofregion

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

2013 2014 2015

PercentageofInvestmentsMadeIn-RegionbyAngelGroupRegion,2013-2015California,Mid-Atlantic,andNewYorkangelsinvestmostfrequentlyoutsideofregion

SectorTrends

YearlyShareofAngelGroupDealsbySectorSoftwareandHealthcarecomprise48%ofinvestmentsin2015

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

CommercialServices

Healthcare

Media

ConsumerGoods&Recreation

Pharma&Biotech

ITHardware

Energy

Other

YearlyShareofAngelGroupDollarsbySectorHealthcareinvestmentcontinuestorise,Pharma&Biotechdeclines

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

CommercialServices

Healthcare

Media

ConsumerGoods&Recreation

Pharma&Biotech

ITHardware

Energy

Other

AbouttheHaloReport™

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UnderstandingtheData:SpecialRoundTypesandIndustrySectors

TheHALOReport™providesanalysisandtrendsonUSangelandangelgroupactivity.

Angelsandangelgroupsinvestalone,together,andwithmanyothertypesofinvestors.UnlessotherwisenotedtheHALOReport™dataincludesallroundsthathaveatleastoneangelgroupparticipatingandmayincludeothertypesofinvestorsinthoserounds.

Afewchartsreportonan“AngelRound,”aspecialclassificationofinvestmentwhenangelgroupsinvestaloneoronlywithotherangelsandangelgroups.

Unlessotherwisenoted,valuesoflessthan1%intheindustrysectorsareincluded,butarenotlabeleddirectly.

HALO Report™ Industry Sectors

CommercialServicesConsumerGoods&RecreationEnergy

HealthcareITHardwareMedia

Pharma&BiotechSoftwareOther

KatieHamburg,khamburg@angelresource.org

TheAngelResourceInstitute(ARI)isa501(c)(3)charitableorganizationdevotedtoeducation,mentoringandresearchinthefieldofangelinvesting,housedatWillametteUniversity.ARIwasfoundedbytheEwingMarionKauffmanFoundation,andisasisterorganizationoftheAngelCapitalAssociation,theprofessionalassociationofangelgroupsinNorthAmerica.

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