A total of 26,300 entrepreneurial ventures received angel funding during the first half of 2011, a 4.4 percent increase from the same period in 2010, and the number of active investors in Q1 and Q2 2011 was 124,900 individuals, virtually unchanged from Q1 and Q2 2010. The increase in total dollars and the matching increase in total investments resulted in an average deal size of $338,400 in the first half of 2011, comparable to the deal size in the same period in 2010 of $337,300.
“These data indicate that angels remain committed to this investment class and at slightly higher valuations than in 2010. While the market exhibited a stabilization from Q1 and Q2 2010, when compared to the market correction that occurred in 2008, these data indicate that the angel market appears to have reached its nadir in 2009 and has since demonstrated a slow recovery,” said Jeffrey Sohl, director of the UNH Center for Venture Research at the Whittemore School of Business and Economics.
Angels have significantly increased their penchant for seed and start-up stage investing, with 39 percent of Q1 and Q2 2011 angel investments in the seed and start-up stage, marking a 13 percent increase in the seed and start-up stage from the same period in 2010. This increase was reflected in a decrease in post-seed/start-up investing, with 60 percent of investments in early and expansion stage, compared to 70 percent in the first half of 2010. New, first-sequence investments represent 49 percent of Q1 and Q2 2011 angel activity, an increase of 3 percent from the same period in 2010.
“Historically angels have been the major source of seed and start-up capital for entrepreneurs, and this return to seed and start-up investing is an encouraging sign. While there remains a need for seed and start-up capital and a capital gap in this stage, if the return to seed and start-up investing continues, this will signify an improvement in both new venture formation and job creation,” Sohl said.
Healthcare services/medical devices and equipment accounted for the largest share of investments, with 25 percent of total angel investments in Q1 and Q2 2011, followed by industrial/energy (17 percent), biotech (14 percent), software (11 percent), media (8 percent) and retail (8 percent).
“Industrial/energy has shown a continued increase since 2010, reflecting a growing interest in clean tech investing by angels. Retail and media have solidified their presence in the top six sectors, mainly due to investing in social networking ventures,” Sohl said.
Angel investments continue to be a significant contributor to job growth, with the creation of 134,130 new jobs in the United States in 2011, or five jobs per angel investment.
The Center for Venture Research has been conducting research on the angel market since 1980. The center’s mission is to provide an understanding of the angel market and the critical role of angels in the early stage equity financing of high growth entrepreneurial ventures. Through the tenet of academic research in an applied area of study, the center is dedicated to providing reliable and timely information on the angel market to entrepreneurs, private investors and public policymakers. For more information visit http://wsbe.unh.edu/cvr or contact the center at 603-862-3341.
The full 2011 Angel Market Analysis for Q1 and Q2, “The Angel Investor Market in Q1Q2 2011: A Return to the Seed Stage,” is available at http://www.unh.edu/news/docs/2011Q1Q2AngelAnalysis.pdf.
The University of New Hampshire, founded in 1866, is a world-class public research university with the feel of a New England liberal arts college. A land, sea, and space-grant university, UNH is the state's flagship public institution, enrolling 12,200 undergraduate and 2,300 graduate students.
Jeffrey Sohl | Newswise Science News
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Researchers at the University of New Hampshire have captured a difficult-to-view singular event involving "magnetic reconnection"--the process by which sparse particles and energy around Earth collide producing a quick but mighty explosion--in the Earth's magnetotail, the magnetic environment that trails behind the planet.
Magnetic reconnection has remained a bit of a mystery to scientists. They know it exists and have documented the effects that the energy explosions can...
Biochips have been developed at TU Wien (Vienna), on which tissue can be produced and examined. This allows supplying the tissue with different substances in a very controlled way.
Cultivating human cells in the Petri dish is not a big challenge today. Producing artificial tissue, however, permeated by fine blood vessels, is a much more...
Faster and secure data communication: This is the goal of a new joint project involving physicists from the University of Würzburg. The German Federal Ministry of Education and Research funds the project with 14.8 million euro.
In our digital world data security and secure communication are becoming more and more important. Quantum communication is a promising approach to achieve...
On Saturday, 10 November 2018, the research icebreaker Polarstern will leave its homeport of Bremerhaven, bound for Cape Town, South Africa.
When choosing materials to make something, trade-offs need to be made between a host of properties, such as thickness, stiffness and weight. Depending on the application in question, finding just the right balance is the difference between success and failure
Now, a team of Penn Engineers has demonstrated a new material they call "nanocardboard," an ultrathin equivalent of corrugated paper cardboard. A square...
19.11.2018 | Event News
09.11.2018 | Event News
06.11.2018 | Event News
19.11.2018 | Science Education
19.11.2018 | Ecology, The Environment and Conservation
19.11.2018 | Life Sciences