Halo Report: Angel Investing Holds Steady in First Quarter

7/10/12Follow @bvbigelow

[Updated 7/9/12 12:42 am. See below.] The average amount of capital that angels invested in early stage companies during the first three months of 2012 declined slightly from last year, according to a new report on U.S. angel activity.

The average size of deals involving only angels and angel groups was $940,000 during the first quarter, according to The Halo Report, a snapshot of angel investment trends issued yesterday by the Angel Resource Institute, CB Insights, and Silicon Valley Bank. That represents an 11 percent decline from the average deal size of $1.06 million in 2011.

But the median deal size, which represents the middle number in a numerically sorted data set, amounted to $700,000 during the first quarter—unchanged from the $700,000 median of 2011. The median deal size is often more meaningful than the average deal size because averages can be skewed by a few very large or very small deals, says CB Insights CEO Anand Sanwal.

Angels are high net-worth individuals who typically invest their own funds in startup companies, and interest in angel activity has increased in recent years. As venture capital firms have pulled back, angel activity has been on an upswing, according to … Next Page »

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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