Angels Taking Larger Stakes In Top Deals

Angel investors in the United States continue to throw larger amounts of money at their most promising deals in exchange for greater ownership.

The news is the highlight of the Halo Report, which observed a burst of first quarter activity in the Southwest and Great Plains states as well as California and New York.

The report, released Thursday, found that median deal size rose in the quarter to $680,000, the third straight quarterly increase. Pre-money valuations, however, remained stable at $2.5 million, suggesting angels are likely getting more equity for their greater participation in high-end deals.

The report, which is prepared by the Angel Resources Institute, Silicon Valley Bank and CB Insights, discovered that the most active angel groups of the quarter were the Alliance of Angels in Seattle, the Desert Angels in Tucson, the Golden Seeds on both coasts, the New York Angels, the Sand Hill Angels in Silicon Valley and the St. Louis Arch Angels.

The report also found that when angels invest alongside venture capitalists and other investors, round size has remained more stable. The median deal size in these syndicates rose slightly in the first quarter but was unchanged from a year ago.

Angels continue to favor Internet, health care and mobile startups.

 Photo courtesy of Shutterstock.

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1 Comment

  • Interesting that they are seeing more activity in the Southwest and Great Plains. Curious to see whether a surge in angel dealmaking will pave the way for more venture investment in those regions.

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