Wednesday, April 9, 2008

Center for Venture Research Releases 2007 Angel Market Analysis Report

The Center for Venture Research of University New Hampshire recently released its 2007 report on the state of angel investing in the US. The 2007 Angel Market Analysis Report shows a slight growth in funds invested in 2007 ($26B) over 2006. Over 57,000 entrepreneurial ventures received angel funding in 2007 which was a 12% increase over 2006. The number of angel investors increased 10% in 2007 t0 over 258,000 individuals. This means there are more investors putting the same number of dollars into more deals so the average size of each deal is going down.

The sector breakdown for those investments is as follows:

Software 27%
Healthcare 19%
Biotech 12%
Industrial/Energy 8%
Retail 6%
Media 5%

As for returns, over 65% of the exits ended with a merger/acquisition. The average return for those was 20% to 40%. Only 4% of the exits ended with an IPO and 27% of the deals ended in bankruptcy.

Best regards,
Hall T.

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