Tuesday, September 25, 2012

SVB Releases "Halo Report," Tracks Angel Investment

The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the latest edition of the Halo Report, a national survey of angel group investment activity, covering the first half of 2012 today.

Halo Report Highlights for 1H 2012, unless otherwise noted:

  • Pre-money valuations increased for pre-Series A deals by angel groups to $2.7 million in Q2, up from $2.5M in Q1, based on the trailing 12 months 
  • Median angel round sizes dropped 21% to $550K over 1H 2011, returning to 2010 round amounts 

    • Median round size is $1.5M when angle groups co-invest with other investor types 
  • Internet companies received more total dollars than healthcare companies for the first time 
    • 52% of angel group investments were in healthcare and internet companies combined 
    • Internet companies received 34% of the angel group dollars 

"The Halo Report sheds light on investing that is often critical to entrepreneurs' success, but very hard to track," said Robert Wiltbank, Vice Chair of Research for ARI. "With this data, entrepreneurs have a much better sense of how to interface with angel investors, and investors have a much better sense of 'the market.'"

"As more angels participate each quarter, we are identifying trends and practices that help entrepreneurs and investors make better decisions and to more effectively create great new companies," said Carrie Walsh, Managing Director for Silicon Valley Bank's Entrepreneur Services Group.

"Angel investors seem to be following a trend similar to the one we've witnessed recently in the venture capital market: Internet and Mobile are increasingly becoming attractive areas for investment while Healthcare is seeing its share decrease in terms of both deals and dollar," said Jonathan Sherry, Co-Founder of CB Insights.

Angel investors, those who invest their own funds and expertise directly into startup companies, appear to be taking on an increasingly important role in driving entrepreneurship throughout the United States. Their investments are in startups and young companies, which have been cited by the Kauffman Foundation as the key source of net new jobs in the country. Nationwide, these angel group investments have opened up new opportunities for centers of innovation and entrepreneurship.

The infographic below provides a decent visualization of the data contained within the Halo Report.

The Halo Report includes aggregate analysis of investment activity by angels and angel groups and highlights trends in round sizes, location and industry preferences. The data is collected via survey and aggregation of public data using CB Insights innovative data analyses. The 1H 2012 Halo Report data is based on 342 deals totaling $467.7 million dollars invested. The transaction details are available in the CB Insights subscription database for users to review and analyze themselves. Academics may also access some of the data through ARI.

More information and the original publication of this information can be found on the SVB website, here.

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