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$1.5 million. $4 million. $0. $250K. $10 million & up. Proof-of Concept. Product Design. Product Development. Manufacturing/ Delivery. Discovery. Financing Life Cycle . SBIR Phase I Phase II. Idea. Pre-seed Funding. Seed Funding. Expansion/Mezzanine. Start-up Funding.
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$1.5 million $4 million $0 $250K $10 million & up
Proof-of Concept Product Design Product Development Manufacturing/ Delivery Discovery Financing Life Cycle SBIR Phase I Phase II Idea Pre-seed Funding Seed Funding Expansion/Mezzanine Start-up Funding Operating Cap. Founder Venture Funds FriendsandFamily Institutional Equity Angels Loans / Bonds Angel Groups Seed Funds
New Company Formation (USA)Source of Equity Funds – Typical Year
HAIL TO THE JOB CREATORS Source: Business Dynamics Statistics Briefing: Jobs Created from Business Startups in the United States. Kauffman Foundation, January 2009.
Who are Angel Investors? • Often successful, exited entrepreneurs or retired business persons • Active investors • Invest both time and money in companies • Accredited investors - SEC definition (US & a few others) • Invest their own money (not money managers) • Generally invest in local companies • Invest at least $20K in businesses not run by family
Angels Fund Majority of Startups in US Angels Provide ~90% of Outside Equity for Startups Angel Investors (2012) Venture Capital (2012) • $22.9 billion • 67,030 deals • 23,460 seed • 22,129 earlystage • 21,441 expansion • > 268,000 individuals • $26.7 billion • 3,723 deals • 280 seed • 1,647 early stage • 1,796 later/expansion • 522 active firms Sources: Center for Venture Research/ UNH; NVCA 2013 Yearbook; PwC MoneyTree
Angels Invest in the Majority of Startup & Early Stage Deals Number of Deals in 2009: Angel Investment and Venture Capital Source: Jeffrey E. Sohl, Center for Venture Research and 2010 NVCA Yearbook
Angel Capital Association Today • Mission: Fuel the success of angel groups and private investors who actively invest in early-stage companies • 185 member angel groups • 8,500+ accredited investors • 20 affiliated organizations • 51 states/ provinces • Charitable partner:
Median Angel Round Size Dips Slightly for the Year… $M $990K $980K $900K $625K $600K $500K *Angel rounds include angels & angel groups only
Median Early Stage Pre-Money Valuation Stays the Same in 2012 $3.7M 3rd Quartile $2.5M Median $6.6M $1.5M 1st Quartile $0.11M *Including all rounds with angel groups before Series A
Share of Mobile Deals Grows, Healthcare ShrinksShare of Angel Group Deals by Sector 2012 vs 2011