Presents the

Angel Group Update, 3Q 2015

Table of Contents
3Q 2015 Highlights, p. 3
National Trends, p.5
Most Active Angels, p. 9
Regional Trends, p. 12
Sector Trends, p. 15
About the Halo Report, p. 18

3Q 2015 Highlights

Halo Report 3Q 2015

Highlights
Angel only round sizes jump in 3Q 2015.
Median up 45% from 2Q 2015 report.
Median seed pre-money valuation increases to $4M in 2015 thru 3Q
33% increase from 2014, highest valuation in the Halo Report to date.
TX, CA & NY boast multiple angel groups on the list of most active groups.
Software sector continues to be the top industry by deal flow, while healthcare
is expanding its share of dollars.

National Trends

Median and Mean Round Sizes Angels Only

2015 Shows Round Sizes Steadily Increasing Quarter Over Quarter

$1.6

$1.41M
$1.4

$1.20M
$1.2

Millions USD

$1.0
$0.8

$767k

$735k
$606k

$725k

$0.6
$0.4
$0.2

$350k

$360k

3Q

4Q

$500k

$500k

1Q

2Q

$0.0
2014

2015
Median Round Size

Mean Round Size

3Q

Median and Mean Round Sizes Angel Co-Investments

Rounds Also Trending Up When Angel Groups Co-Invest With Non-Angels

$4.0

$3.51M
$3.5

$3.09M
$2.80M

$3.0

$2.38M

Millions USD

$2.5

$1.96M
$2.0
$1.5

$1.55M

$1.50M
$1.0

$1.71M

$1.20M

$1.10M

$0.5

$0.0
3Q

4Q
2014

1Q

2Q
2015

Median Round Size

Mean Round Size

3Q

Median Seed Stage Pre-Money Valuation

Median Valuation Up 33% From 2014, Highest Ever Valuation In HALO Report

2014

$12.8M

$15.0M

3rd Quartile:

3rd Quartile:

$6.3M

$6.5M

MEDIAN :

$3.0M

MEDIAN :

$4.0M

1st Quartile:

1s t Quartile:

$2.0M

$2.5M

$0.90M

$0.12M

2015 Thru 3Q

Active Angel Groups

Most Active Angel Groups 2015 Thru 3Q Total Deals

Most Active Angel Groups 2015 thru 3Q Total Number of Deals

Total Deals 2015 (descending order)

Tech Coast Angels

Houston Angel Network
Central Texas Angel Network
Alliance of Angels
New York Angels
Wisconsin Investment Partners
Sand Hill Angels
Keiretsu Forum
Queen City Angels
Launchpad Venture Group
Golden Seeds
Maine Angels

Data sourced from

Regional Trends

2015 Thru 3Q Share of Angel Group Deals by Region:

Great Lakes

12.9%

Northwest

6.9%

California

21.1%

New York

8.6%

New England

12.1%

Great Plains

Mid-Atlantic

3.9%

5.2%

Southwest

9.1%

Southeast

Texas

11.2%

9.1%

2015 Thru 3Q Share of Angel Group Dollars by Region:

Great Lakes

14.5%

Northwest

4.1%

California

19.7%

New York

9.8%

New England

15.5%

Great Plains

Mid-Atlantic

2.5%

3.4%

Southwest

7.5%

Southeast

Texas

9.7%

13.8%

Sector Trends

Quarterly Share of Angel Group Deals by Sector

Software continues as top industry by deal flow

100%
90%

80%

37.2%

37.3%

33.0%

38.0%

35.8%

Software
Commercial Services

70%
60%

7.0%

50%

9.3%
2.3%
5.8%

40%

30%
20%
10%

Healthcare Svcs/Suppl./Syst.

9.0%
8.9%

10.4%

11.3%
Media

13.0%
11.9%
6.0%
6.0%
4.5%
4.5%
6.0%

10.5%

2.3%
2.3%

10.0%
3.0%
3.0%

19.0%

17.0%

5.1%
1.3%
3.8%
2.5%

1.9%
5.7%
3.8%
3.8%

23.3%

19.4%

23.0%

20.3%

20.8%

3Q

4Q

1Q

2Q

3Q

0%
2014

2015

Consumer Goods & Recreation

Pharma & Biotech

IT Hardware

Energy
Other

Quarterly Share of Angel Group Dollars by Sector

Internet & Healthcare Alone Account for 50% of Invested Capital in Past 5 Quarters

100%

17.6%

90%

80%

27.4%

70%

20%

10%

15.3%

16.6%
17.1%

0.1%
3.9%

2.8%
1.9%
7.6%

40%

30%

8.7%

12.0%

0.9%
15.7%

50%

22.1%

36.1%
13.5%

60%

20.5%

18.3%

3.6%
3.6%

Software
Commercial Services

Healthcare Svcs/Suppl./Syst.

24.3%
Media

8.0%
16.9%
0.7%
3.5%

5.4%
5.4%
1.2%
4.6%

30.0%
Consumer Goods & Recreation

0.3%
4.2%
2.6%

Pharma & Biotech

IT Hardware

27.6%

21.3%

23.2%

30.0%

25.5%

0%
3Q

4Q
2014

1Q

2Q
2015

3Q

Energy

Other

About the Halo Report

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

Internet
Industrial
Mobile & Telecom
Automotive & Transportation
Software
Business Products & Services
Energy & Utilities
Consumer Products & Services
Computer Hardware & Services Electronics
Healthcare
Environmental Services &
Equipment

Financial Services
Food & Beverages
Leisure
Media
Metals & Mining
Retail
Risk & Security

HALO Report Contact

Angel Resource Institute at Willamette University
Katie Hamburg, khamburg@angelresource.org

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 worlds first student run angel investment fund in 2008.
Willamette faculty and researchers published the worlds 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.