Angel Investment: State of the union 2016-2017

Of the 300K angel investors in the US, 24K were active (invested in at least 1 deal) in 2016. Angels invested a total of $21.1B in 71K companies in the US alone. While worldwide numbers are hard to come by, based on historical trends, the US represents between 45% to 50% of all angel deals. Business services (12.5%) and Internet (11.1%) made up the 2 most frequently invested companies by angels, followed by Retail (10.7%).

Women make up about 7% of angel investors and 12% of all founders who received angel investment. The average angel round was about $510K at a valuation of $2.2M. Individual angels reported investing $27K in median in 2016 in 2 (1.7 average) deals. Angels with over 10 invested companies and investing for the last 5 years had partial annualized cash-on-cash returns of 19% with some outliers at 40% annual returns, and fewer than 11% making less than 15% in annual returns.

There are roughly 700 angel groups in the US, with an average of 42 investors in each group. Over 60% of angel deals are equity and 24% are convertible debt with an average of 23% equity owned by angels after their investment round.

Author: Munmun

Engineer. Entrepreneur. Mom.

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