"Angel Investor Market Trends: Q1Q2 2006" (16 min)
Dr. Jeffrey Sohl, UNH Center for Venture Research, discusses trends in the angel investor market in first half of 2006. With about $12.5 billion invested by angels in about 24,500 deals, angel investing through Q1Q2 2006 is consistent with 2005 trends. However, average deal size is up, the possible result of a redistribution of investments by some angels in later rounds, which is likely to reduce funds available for earlier investment stages. The “big three” sectors of healthcare, software and biotech accounted for about 57% of total angel investment. Surprisingly, investment in retail deals rose sharply and yield rates declined to near-normal historical levels of around 10%. With some of the largest amounts of capital in many years accumulated by venture capital funds, some of these funds could be directed to the seed stages, but capital alone is not enough to address the continuing need of entrepreneurs for seed-stage value-add knowledge from angels.
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This value-added benefit is the exact reason that I've been researching angel investment as an option in funding my business concept. I've spent the last several months strengthening the concept and am about 2 months away from completing my business plan. One of my projects will operate in a 1/2 trillion dollar industry, and has multi-billion dollar potential. I've identified several needs which my business will meet, and have built multiple streams of income into my Marketplace Model.
I need angel investors who can not only fund us thru the seed stages (e.g. patents, prototypes, beta, etc.), but who also have the expertise to take on an active role in the company.
My concept is sound, and the market potential is tremendous; but I need an extremely high level management team who's "been there/done that!"
My question is, "Are there Angel firms with ready-made executive teams, as is the case with some VC firms?"
Posted by: Tony | December 22, 2006 at 06:55 PM