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What our members have to say...
"Just a quick note to let you know that I really enjoyed the Speed Pitching event last night. There were a couple of interesting businesses on show, and the event was very well organised, high energy and fun. Congratulations on a great evening!"
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Paul Breen - Business Coach & Investor |
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US Angel Investment In Small Business Is Up
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Good news about small business financing is rare these days, but a new report on angel investing offers a bright spot in the clouds: Angel investment in small businesses is on the upswing, according to Q1 Q2 2011 Angel Market Trends. While angel investment slumped in the depths of the recession, the latest report on angel investing from the Center for Venture Research at the University of New Hampshire has good news.
“The angel market appears to have reached its nadir in 2009 and has since demonstrated a slow recovery,” says the report. Both the number and size of angel investments were up in 2011, as was the percentage of companies seeking angel capital that succeeded in getting it.
Total angel investments in the first half of 2011 reached $8.9 billion, an increase of 4.7 percent from the same period last year. Some 26,300 companies got angel financing, an improvement of 4.4 percent from last year. The average amount that angels invested in each company was $338,400.
The market yield rate (the percentage of companies seeking financing that actually receive it) grew to 15 percent in the first half of 2011. This continues a positive trend, with growth from 10 percent in 2008 and 12 percent in 2010.
What are the most popular industries for angel investors to back? Leading the way was healthcare services/medical devices and equipment (accounting for 25 percent of angel investments), industrial/energy (17 percent), biotech (14 percent) and software (11 percent). In addition, the media and retail industries are now among the top six most popular sectors for angel financing; each received 8 percent of total investments so far in 2011.
The positive news about angels has good ramifications for job creation as well. Angels’ investments in businesses at the seed and startup level rose to 39 percent of angel investments in the first half of this year, up 13 percent from the same period last year.
Since startup businesses are major job creators, this is heartening news. With each angel investment this year creating an average of five new jobs for a total of 134,130 so far in 2011, seems like angels are spreading their wings and taking the rest of us along for the ride.
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