"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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