Important Things for Entrepreneurs to Know about Angel ...

[Pages:41]Important Things for Entrepreneurs to Know about Angel Investors

HAIL TO THE JOB CREATORS

From 1980 to 2005, firms less than five years old accounted for all net job growth in the United States.

Business Dynamics Statistics Briefing: Jobs Created from Business Start-ups in the United States, January, 2009.

Equity Capital Markets Large, Complementary

Early Stage Late

$19.2B 55,480 deals Mostly early stage

2008 Angel Investment

source: UNH CVR

Mostly later stage 3,808 deals $28.3B

440 Seed

2008 VC Investment

source: NVCA/PWC/Thomson Reuters

New Company Formation

Source of Equity Funds ? Typical Year

500 Classic VCs 1000-2000 Seed Funds

>50,000 Angels >200,000 Friends & Family

500,000 Startup Companies

0

100,000 200,000 300,000 400,000 500,000

VC Deals by State

WASHINGTON

OREGON

IDAHO

MONTANA WYOMING

NEVADA

UTAH

COLORADO

CALIFORNIA

ARIZONA

NEW MEXICO

ALASKA

NORTH DAKOTA

MINNESOTA

MAINE VT

SOUTH

WISCONSIN

NH MASS

DAKOTA

MICHIGAN

NEW YORK RI

CONN

NEBRASKA

IOWA

PENN

NEW JERSEY

OHIO ILLINOIS INDIANA

WV

2006 DELAWARE

MARYLAND

KANSAS

MISSOURI

VIRGINIA

KENTUCKY

NORTH

TENNESSEE

CAROLINA

OKLAHOMA ARKANSAS

SOUTH

CAROLINA

MISS

GEORGIA

ALABAMA

TEXAS

LOUISIANA

FLORIDA

>100 deals

25-100 deals

< 25 deals

< 10 deals

HAWAII

Bay Area Draws Most Investment Dollars

Regional Investment in the United States 3Q'06

All Other US 19%

Research Triangle

2%

Washington State 3%

Potomac 4%

Texas 5%

New York Metro

8%

New England

10%

Bay Area 38%

Southern California

11%

Source: Dow Jones VentureOne/Ernst &Young

Annual Sources of Start-up Funding

$22

Venture Capital ~$.3 billion

$20

State Funds ~$.5 billion

$18 $16

Angel Investors ~$20 billion

$14

$12

$10

Angels: 90% of outside

$8 $6

equity for start-ups?

$4

$2

$0 1

Friends & Family ~$60 billion

Sources: MoneyTree, NASVF, multiple studies on informal capital

Companies Backed by American Angels

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