Median Seed Valuation In U.S. Hits Record $3.95M by PitchBook
ORTALND, OR (September 22, 2015) – The Angel Resource Institute at Willamette University (ARI) released the 2015 Q2 ARI HALO Report: Geography Edition today, a national survey of angel group investment activity sponsored by PitchBook. ARI’s Vice Chairman of Research Rob Wiltbank said, “For the first time ever, we are able to report on the geographic differences over the last several years for the key metrics we’ve been reporting in the HALO Report™.”
Highlights of the 2015 Q2 ARI HALO Report: Geography Edition
- Seed stage valuations have risen steadily over the last five years to an all-time high of 3.95M (Median), a 30% increase over 2014.
- Round sizes in deals with only angel investors have grown from $800K in 2014 to over $1M year to date in 2015.
- All regions across the U.S. have seen increases in round size in the last 6 quarters. The largest increases in round sizes were in the Great Plains ($0.2 to $1.1M), Mid-Atlantic ($0.3M to $1.5M), and Northwest ($0.3M to $1.5M) regions.
- Over the last 5 years, California consistently completed the most investments, at 19.6% of the total, with New England (12.7%), and the Great Lakes (12.2%) following closely behind.
- Angel investing activity is equally distributed across the country when parsed either East and West or North and South at approximately 50% / 50%.
- Each region has different industry concentrations. California and New York tend toward Mobile and Internet, while Texas has completed more investments in Food & Beverage than any other region. The Great Lakes tend toward Industrial and Healthcare, while New England and the Southeast maintain a relatively balanced “portfolio” across sectors.
“There has been a long term trend towards increasing round sizes and valuation in all geographies. What makes this report unique is, for the first time, we can see the difference between regions within those trends, and also relative to industry sectors.” Wiltbank said.
The ARI 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 innovative data analyses. The 2015 Q2 ARI HALO Report: Geography Edition data is based on 4,719 deals totaling $7.5B in total rounds including co-inventors.
Angel groups and individual angel investors interested in including their data in the ARI Halo Report should contact Katie Hamburg, (425) 330-0952 or khamburg@angelresource.org
The Angel Resource Institute at Willamette University is a charitable organization devoted to education, mentoring, and research in the field of angel investing, a growing driver of our entrepreneurial economy. ARI was founded by the Ewing Marion Kauffman Foundation. The programs of ARI include educational workshops and seminars, research projects and reports, and information on best practices related to the earliest stages of angel investing and new-venture development.
PitchBook is the leading research firm for private equity and venture capital. PitchBook offers the most comprehensive industry information available through its core product, the PitchBook Platform, as well as its daily newsletter and research reports.
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 world’s first student run angel investment fund in 2008. Willamette faculty and researchers published the world’s 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 preform data analysis for the HALO Report.
2014 Annual ARI Halo Report
Valuations increased. Deal sizes increased. Activity increased.
Angel groups in the Great Lakes region invested more dollars than anywhere else in the country, just past California.
WILMINGTON, NC (April 15, 2015) – The Angel Resource Institute (ARI) released the 2014 Annual ARI Halo Report today, a national survey of angel group investment activity sponsored by PitchBook. ARI’s Vice Chairman of Research Rob Wiltbank announced the findings at the opening session of the Angel Capital Association’s Annual Summit in San Diego.
Highlights of the 2014 Annual ARI Halo Report findings:
- Angel groups in the Great Lakes region invested more dollars than anywhere else in the country, 17.2%, just past California at 17% of the U.S. total.
- Angel investment round sizes increase substantially in 2014, with a mean increase of 60% and a median increase of 40%. This is true across all sectors. Rounds are also trending up when angel groups co-invest with non-angels.
- Valuations climb again: Median pre-money valuation increases to $3.0M, up 20% from 2013. This is the highest-ever top valuation in the ARI Halo Report.
- Deal size is up across the board: Health-care deals show largest increase. Internet, health care, mobile, and telecom account for 68% of deals. Internet and health care alone account for 63% of invested capital. Internet sector is down nearly 20% from 2013 as a percentage of the total deals in the U.S.
- Texas and New York each boast two angel groups on the list of most active for 2014. The most active angel groups by total deals for 2014 (in alphabetical order) are Atlanta Technology Angels, Baylor Angel Network, Central Texas Angel Network, Desert Angels, Golden Seeds, Houston Angel Network, Keiretsu Forum, Launchpad Venture Group, Maine Angels, New York Angels, Tech Coast Angels, and Wisconsin Investment Partners.
“Group angel investing in the U.S. had a busy 2014,” Wiltbank said. “The upward trend has been running generally from 2011 and accelerated in 2014. Valuations increased. Deal sizes increased. Activity increased. As a result, the breadth of group angel investing increased, with investments spread more across sectors and across different regions than in prior years.”
The ARI 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 innovative data analyses. The 2014 Annual ARI Halo Report data is based on 870 deals totaling $1.65B in total rounds including co-investors.
Angel groups and individual angel investors interested in including their data in the ARI Halo Report should contact Liz Bruning at 910.523.5503 or liz@angelresource.org.
The Angel Resource Institute (ARI) is a charitable organization devoted to education, mentoring, and research in the field of angel investing, a growing driver of our entrepreneurial economy. ARI was founded by the Ewing Marion Kauffman Foundation. The programs of ARI include educational workshops and seminars, research projects and reports, and information on best practices related to the earliest stages of angel investing and new-venture development.
PitchBook is the leading research firm for private equity and venture capital. PitchBook offers the most comprehensive industry information available through its core product, the PitchBook Platform, as well as its daily newsletter and research reports.
Q2 2014 Halo Report
Angel Group Valuations Continue Three-Quarter Climb
Q2 Halo Report Reveals Angel Group Round Sizes Increase by $1 Million for Healthcare Companies; Texas Joins Top Three Most Active Regions
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