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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.
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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
Average Size Investment Per Round Percent of Groups Source: 2007 ACA Angel Group Confidence Survey
Preferred Investment/Company Stage Percent of Groups Source: 2007 ACA Angel Group Confidence Survey
Average = 44 Median = 38 Investors Per Group Percent of Groups Source: ACA Conf survey and membership applications - 116 groups reporting (2006-2007)
Organization Types No Structure 17%(20 groups) For Profit 48%(54 groups) Non Profit 35% (39 groups) Groups Source: ACA Conf survey and membership applications – 113 groups reporting (2006-2007)
2007 Prediction:How Many New Companies Will You Invest In? Percent of Groups Companies Source: 2007 ACA Angel Group Confidence Survey
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 7 Number of investments 7 Total exits/ closures 1 Years as entrepreneur 13 Number ventures founded 2 Age 57 Percent of wealth in angel investing 10% Education Masters degree
20% 15% 10% 5% 0% -5% -10% 0 1 2 3 4 5 6 7 8 9 10 Year The Power of the J-Curve Internal Rate of Return(%) Source: Utimco
Glen Balzer gbalzer@sandhillangels.com (650) 917-0703