1. Angel Investing in Today’s Economy June 12, 2007 Glen Balzer Sand Hill Angels

2. Growth in Angel Organizations 1999 - 2006 Sources: Center for Venture Research (pre 03 data) and Kauffman Foundation/ACEF (04-06 data)

3. Source: 2007 ACA Angel Group Confidence Survey 2006 Angel Group Investment Data 72% co-invested with venture capital firms 29% had distributions to investors Investment up 23% from 2005

4. Average Size Investment Per Round Percent of Groups Source: 2007 ACA Angel Group Confidence Survey

5. Preferred Investment/Company Stage Percent of Groups Source: 2007 ACA Angel Group Confidence Survey

6. Investors Per Group Source: ACA Conf survey and membership applications - 116 groups reporting (2006-2007) Average = 44 Median = 38 Percent of Groups

7. Organization Types For Profit 48% (54 groups) Non Profit 35% (39 groups) No Structure 17% (20 groups) Groups Source: ACA Conf survey and membership applications – 113 groups reporting (2006-2007)

8. 2007 Prediction: How Many New Companies Will You Invest In? Source: 2007 ACA Angel Group Confidence Survey Percent of Groups Companies

9. Preliminary Distribution of Outcomes Loss 47% 1 to 4X26% 4 to 6X15% 6 to 30X 8% 30X + 4%

10. Profile of Angels - Median Years investing7 Number of investments7 Total exits/ closures1 Years as entrepreneur 13 Number ventures founded2 Age 57 Percent of wealth in angel investing 10% EducationMasters degree

11. -10% -5% 0% 5% 10% 15% 20% Year 012345678910 Source: Utimco The Power of the J-Curve Internal Rate of Return (%)

12. Glen Balzer gbalzer@sandhillangels.com (650) 917-0703