financing your company with angel financing€¦ · 2016 annual ari halo report. for immediate...
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June 2017
NSF Phase II Grant Conference
Speakers:Michael Cain
Susan PrestonRhys Williams
Financing Your Company With Angel Financing
2016 @arihaloreport
2016 AnnualARI HALO ReportFor immediate releaseApril 27, 2017
Full Report available at angelresource.org
2016 @arihaloreport
METHODOLOGY & VALIDATIONAngels and angel groups invest alone, together, and with many other types of investors. Unless otherwise noted, the 2016 HALO ReportTM data includes funding rounds that have at least one angel group participating and may include other types of investors in those rounds. Note that “Median Angel Group Investment” is the median size of investments made by Angel groups in the reported deals. There are many groups that have the capability of making significantly higher investments; however, the 2016 data showed that many of these groups also invested small amounts of capital. It is important to note that the “Median Funding Round Size” includes investments from Angel groups and non-angel groups including venture funds, family offices, and individual investors.
This report discusses angel group investment trends for 2016, which represents a total of 2,751 deals and $3.5B (excluding duplicates) in total rounds including co-investors. Deals with rounds greater than $5 million were excluded from this report to avoid skewing the data. The number of deals provided directly from angel groups represents a 200% increase over 2015. Data was captured directly from angel groups through the Angel Resource Institute’s data portal (www.arihaloreport.com), via email or phone calls from group leaders or administrators, and via Pitchbook. Additional data was collected from individual angels, but is not included in this report.
2016 @arihaloreport
DEAL FLOW FOR ANGEL GROUPSTop 5 Markets where early-stage deals are headquartered:
California (30%)Southeast (12%)New York (11%)Great Lakes (9.5%)Northeast (9.4%)
2016 @arihaloreport
DIVERSIFICATIONAre angels investing regionally or looking for diversification by investing in other regions?
Syndication trends continue to grow thanks to relationships built thru ACA.
2016 @arihaloreport
MEDIAN PRE-MONEY VALUATIONSignificant reduction in pre-money valuation vs. 2015 (agnostic to geography and industry).
Valuations are more in-line with expectations as angel groups look for stronger returns.
2016 @arihaloreport*US industry preference for angel groups includes median pre-money valuation for each industry.
MEDIAN PRE-MONEY VALUATIONSINDUSTRY PREFERENCE &
2016 @arihaloreport
2016 @arihaloreport
ANGEL GROUP INVESTMENTS
Rounds where angel groups co-invest with venture funds, family offices and individual angels hit $950,000* in 2016.
*This report removed all first-round deals with funding rounds greater than $5 million. While angel groups do participate in higher rounds, it is not the norm and, in most cases, angel groups are a small percentage of those deals.
MEDIAN $127k
2016 @arihaloreport
FOLLOW-ON VERSUS NEWAngel groups are recognizing the need to reserve dry powder to support portfolio companies.50.4%
Follow-on49.6%New
2016 @arihaloreport
REGIONALIZED DATAThe 2016 Annual HALO Report includes regionalized data including median valuation and round size, industry preference, follow-on vs. new, deal structures, and syndication trends.
2016 @arihaloreport
2016 @arihaloreport
CROSS-BORDER INVESTINGAngel groups are beginning to look outside the US for diversification. Check out the section on cross-border investing and details on HBAN’s growth in Ireland.
2016 @arihaloreport
2016 @arihaloreport
MINORITY REPORTThe 2016 Annual HALO Report takes a look at how angel groups are using race and gender of its portfolio company founders and leaders to add diversification. Note, there was no major difference between races and genders in valuations or funding round sizes.
58% White Male 25% Minority Male14% White Female 3% Minority Female
2016 @arihaloreport
RANKING BY DEALS SINGLE LOCATION GROUPS
1T1T3456789T
Central Texas Angel NetworkHouston Angel NetworkHyde Park Angel NetworkAlliance of AngelsLaunchpad Venture GroupNew York AngelsBlu Venture InvestorsRTP CapitalQueen City AngelsSt. Louis Arch Angels
2016 @arihaloreport
Keiretsu ForumTech Coast AngelsInvestors CircleGolden SeedsAstia Angels
RANKING BY DEALS MULTI-LOCATION / CHAPTER GROUPS
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2016 @arihaloreport
Download the2016 Annual
angelresource.org
Thanks to the Angel Capital Association and every angel group who participated.