Angels + VC Stats

Some interesting stats from Don Dodge, of the Microsoft Information Worker team.

The Center for Venture Research at UNH have just released their annual Angel Capital report for 2007. Angels invested $26 Billion in 57,120 companies, up slightly from last year. The report says there are 258,200 active angel investors in the USA. By comparison, Venture Capitalists invested to $29.4B in 3,813 companies in 2007.

Software accounted for the largest share of Angel investments, with 27%, followed by Healthcare Services/Medical Devices and Equipment (19%) and Biotech (12%).

Angel Investors continue to be the largest source of seed stage and early stage start-up capital, with 39% of 2007 angel investments going there.

Angels tend to invest just like VCs except they do smaller investments $200K to $2M and they do about 15 times as many deals. However, Angels have the same investment criteria and expectations of significant returns. The "average" angel group makes 8 investments per year for a total of about $2M. The average deal size (seed stage) is about $250K.

In New Zealand, the word on the street is that the number of Angel and VC deals closed in 2007 was small. Given New Zealand's innovative culture and its potential global impact, it makes you think. NZ business needs the investment. Angels fly. It would be good if perhaps some could wing their way over the Pacific and make a home in Aotearoa. They would be very welcome.