Angels Invest Aggressively in 3Q with a Growing Interest in Mobile

Angels continued to aggressively put money to work in the third quarter of last year, as competition for mobile startups appears to have accelerated.

The median angel round size jumped to a 15-month high during the period and dollars going to mobile startups rose to 16.5% of total investments, trailing only the money pumped into Internet and healthcare startups, according to the recent Halo Report. Mobile deal-making hit a five-quarter high.

The Halo Report, put together by the Angel Resource Institute, Silicon Valley Bank and CB Insights and released earlier this week, hones in on investment activity by angels and angel groups. The study so far has tracked $804.4 million of invested capital and 541 transactions through the first nine months of 2012. The recent update had much of interest.

Median round size rose to $640,000 in the third quarter, a 21% jump from the second quarter. Average round size climbed even more, to $1.22 million, the report found.

And while median pre-money valuations remained stable at $2.6 million on a rolling 12-month basis, the share of dollars going into mobile startups rose 27%, while healthcare and Internet spending shrank as a percentage of the whole.

Also of interest, the share of deals drawing co-investments fell. Fifty-one percent of deals did not have co-investors, up from 31% in the second quarter. The remaining 49% of deals did have syndicates, but that was down from 69% in the second quarter.

The most active angel groups in the quarter were the Launchpad Venture Group of Boston, Central Texas Angel Network of Austin, Investors’ Circle, Golden Seeds, Tech Coast Angels of Southern California and Sand Hill Angels of Sunnyvale.

Also of note: Activity in the Southeast climbed substantially, to 19.5% of deals done from 12.3% in the second quarter. Deal activity was only greater in California, which accounted for 21.4% of deals.

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