1. Founders’ Friends & Family Angel Investors Venture Capitalists
Pre-seed
Stage
Seed/Start-up
FUNDING
GAP
Early Stage
Later Stages
Founders’ Friends & Family
Angel
Investors
Very few angel deals done above $1 million
Very few VC deals done below $4 million
Venture Capitalists $0
$250K
$1.5 million
$4 million
$10 million
& up

2. Financing Life Cycle SBIR Discovery Proof-of Concept Product Design
Phase I Phase II
Discovery
Proof-of
Concept
Product
Design
Development
Manufacturing/
Delivery
Idea
Pre-seed
Funding
Seed Funding
Start-up Funding
Expansion/Mezzanine
Operating Cap.
Founder
Venture Funds
Friends and Family
Institutional Equity
Angels
Loans / Bonds
Angel Groups
Seed Funds

3. New Company Formation (USA) Source of Equity Funds – Typical Year

4. HAIL TO THE JOB CREATORS
Source: Business Dynamics Statistics Briefing: Jobs Created from Business Startups in the United States. Kauffman Foundation, January 2009.

5. Who are Angel Investors?
Often successful, exited entrepreneurs or retired business persons
Active investors
Invest both time and money in companies
Accredited investors - SEC definition (US & a few others)
Invest their own money (not money managers)
Generally invest in local companies
Invest at least $20K in businesses not run by family

6. Angels Fund Majority of Startups in US
Angels Provide ~90% of Outside Equity for Startups
Angel Investors (2012)
Venture Capital (2012)
$22.9 billion
67,030 deals
23,460 seed
22,129 early stage
21,441 expansion
> 268,000 individuals
$26.7 billion
3,723 deals
280 seed
1,647 early stage
1,796 later/expansion
522 active firms
Sources: Center for Venture Research/ UNH; NVCA 2013 Yearbook; PwC MoneyTree

7. Angels Invest in the Majority of Startup & Early Stage Deals
Number of Deals in 2009: Angel Investment and Venture Capital
Source: Jeffrey E. Sohl, Center for Venture Research and 2010 NVCA Yearbook

8. Angel Capital Association Today
Mission: Fuel the success of angel groups and private investors who actively invest in early-stage companies
185 member angel groups
8,500+ accredited investors
20 affiliated organizations
51 states/ provinces
Charitable partner:

10. Median Angel Round Size Dips Slightly for the Year…
$980K
$990K
$900K
$625K
$600K
$500K
*Angel rounds include angels & angel groups only

11. Median Early Stage Pre-Money Valuation Stays the Same in 2012
3rd Quartile
$6.6M
$1.5M
1st Quartile
$0.11M
*Including all rounds with angel groups before Series A

12. Share of Mobile Deals Grows, Healthcare Shrinks Share of Angel Group Deals by Sector 2012 vs 2011