News Column

United States : ANGEL investors increase seed and startup funding

May 5, 2014

The angel investor market continued its upward trend started in investment dollars and in the number of investments.

Angels increased their investments in the seed and start-up stage, with 45% of 2013 angel investments in the seed and start-up stage, up from 35% in 2012. Angels exhibited an increased interest in early stage investing with 41% of investments in the early stage, up from 33% in 2012.

This increase in the seed/start-up stage is an encouraging sign since seed capital is the stage of need for the nation s entrepreneurs.

Angel investments continue to be a significant contributor to job growth with the creation of 290,020 new jobs in the US in 2013, or 4.1 jobs per angel investment.

Total investments in 2013 were $24.8 billion, an increase of 8.3% over 2012. A total of 70,730 entrepreneurial ventures received angel funding, an increase of 5.5%, and the number of active investors was 298,800, an increase of 11.4% from 2012. The $24.8 billion in total investments is close to the market high of $26 billion that occurred in 2007.

The increase in total dollars and the number of investments resulted in a deal size for 2013 that was higher than in 2012. These data indicate that angels were active investors, but those who did invest decreased their individual investments slightly, from $85,435 in 2012 to $83,050 in 2013, a decrease of 2.8%.

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Source: TendersInfo (India)