Rise of the Angel Investor
Angel investors are affluent individuals or groups who provide starting capital for a new business. Typically they get company equity or convertible debt in return for their investment. There is a big difference between an angel investor and venture capitalist. A venture capitalist manages a pool of money invested by other people, whereas angels usually invest with their own funds.
Angel Investor Stats
Here are some useful statistics released by the Angel Resource Institute:
• The average age of an angel investor is 47.
• The average annual income of an angel investor is $90,000.
• On average, the total net worth of an angel investor is $750,000.
• The average individual investment made per venture is $37,000.
• Angels typically invest in 1 out of every 10 businesses they consider.
• In 2012, Angel investment helped create 106,400 new job (4 job per angel investment)
Top Angel Investor Groups of 2012
There are many groups of angel investors, where individual angels have joined with others to make larger investments. Some of the most active angel groups in 2012 were:
• LaunchPad Venture Group
• Central Texas Angel Network
• Investor’s Circle
• Golden Seeds
• Tech Coast Angels
• Sand Hill Angels
Angel Investments by Industry
Here is a quick breakdown of the different industries that angel investors funded according to the number of deals made.
• Internet (31.2 %)
• Other (23.5 %)
• Healthcare (20.1 %)
• Mobile and Telecom (14.9 %)
• Consumer Products & Services (5.8 %)
• Electronics (4.5 %)
Top Locations for Angel Investments
Some places have a greater number of angel investors. Find out in which areas of the U.S. you are more likely to find a generous angel investor.
• California – 28 %
• New England – 21.3 %
• Southeast – 16.2 %
• Mid-Atlantic – 8.3 %
• New York – 8.1 %
• Other – 18.1 %
The number and dollar amount of angel investments have been steadily increasing in recent years. In the coming years, angel investments will become an increasingly important part of the business start-up process.