Angels group invested $5.8 million in '06
From The Seattle Times:
The Alliance of Angels said that in 2006 the organization invested $5.8 million in 31 companies. Of those startups, 11 received a follow-on investment, meaning they had received money from the membership in the past.
In 2005, fewer companies received a record-breaking $7 million. The 2005 numbers were skewed by two of the 21 companies receiving about half of the total invested.
Labels: Funding Stats
posted by Technology Alliance at
7:08 PM
3 Comments:
Can you publish the success rate for alliance investments? Of all the companies that folks have invested in, how many have had positive liquidity events (and of what magnitude), how many are gone and how many are still around.
This will be enlightening for those afraid of angel investments!
This post has been removed by the author.
Thanks for the comment/question. The Kaufman Foundation used the following analogy in a recent article on angel deals, valuations and exits: "Lemons sour quickly, but plums take time to ripen." It's certainly appropriate in our 10-year history, during which just under 30% of our investments have had liquidity events. Here are a few stats:
*We started in 1997, and made our first investment 1998
*Over 2000 companies have applied to our process
* Over 270 companies have presented (just over 10% who apply make it through the 4-step process)
*The AoA has funded 119 companies through 2006.
*These companies received $64M in funding ( $31.7M from our membership and we facilitated $32.2M from our network)
*In our 10-year history, we've had 4 IPO's and 12 acquisitions (positive liquidity events), and 19 companies go out of business.
*In the last three years, all of the companies in which we invested are still in business.
*We invested in 31 co's(2003-2005), 19 received follow-on funding, 13 of those from VCs. This kind of funding is additional market validation for recent deals.
While Angels certainly got burned in the bust, the above suggests that a rigorous screening process as well as some patience can pay off. Diversification of deals should also help mitigate the swings in the marketplace. We'll get back to you on the magnitude of the positive exits, and as for diversification, are also happy to comment on our industry mix as well as our Seed Fund.
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