ACA Member Landscape 2009 Different Than 2008 (And Not)

Size: px

Start display at page:

Download "ACA Member Landscape 2009 Different Than 2008 (And Not)"

Pearl Wheeler
7 years ago
Views:

1 ACA Member Landscape 2009 Different Than 2008 (And Not) April 16, 2009 Summary of ACA Membership April, 2009 Full Members 146 Provisional Members 16 Accredited Investors in 7,062 States & Provinces 49 Affiliate Organizations 19 1

Members 146 Provisional Members 16 Accredited Investors

2 Members and Affiliates April, 2009 Full Members Provisional Members Affiliates Growth in Number of American Angel Sources: Center for Venture Research (pre 03 data) and Kauffman Foundation/ACEF (04-09 data) 2

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Sources: Center

3 Comparing Average Group Investment Data Number of investments Total dollars invested $1.77 mil $1.94 mil $1.78 mil Dollars invested per round $276,918 $265,926 $241,528 Number of new companies In 2008: 62.7% had follow-on or co-investments with VC firms 23.4% had 1 or more positive exits Source: ACA Angel Group Confidence Surveys 2007, 2008, and 2009 (self-reported, not verified) Average Preferred Investment Per Round < $150,000 $150,000 - $250,000 $250,000 - $500,000 $500,000 - $750,000 > $750, Source: 2009 ACA Angel Group Confidence Survey and 2008 Member Directory Percent of 3

4% had 1 or more positive exits Source: ACA Angel Group Confidence Surveys 2007, 2008, and 2009 (self-reported, not verified) Average Preferred Investment Per

4 Predictions for 2009 Overall Investment Changed in 4 Months Deals and dollars up Everything is same Deals up, dollars down Deals down, dollars up Deals and dollars down Other November, 2008 March, 2009 Source: 2008 and 2009 ACA Angel Group Confidence Surveys Percent of 2009 Prediction: How Long Will Credit Crunch/ Current Economy Last? Q Q November, 2008 March, Later Source: ACA Angel Group Confidence Survey November 19, 2008 Percent of 4

Angel Group Confidence Surveys Percent of 2009 Prediction: How Long Will Credit Crunch/ Current Economy Last?

5 2009 Prediction: Plan Major Changes to Group Structure or Investment Process? Increase member angels 29.2% Decrease member angels 0.0% Establish sidecar fund 19.4% Raise new fund 12.3% More investment in portfolio cos 32.3% More co-investment with other groups 53.8% Increase co-investment (general) 35.4% Update industry preferences 15.4% No changes planned 21.5% Other changes 23.1% Source: 2009 ACA Angel Group Confidence Survey Co-Investment/ Follow-On Preferences Individual angels Other angel groups Early-stage VC Later-stage VC Family offices Other private equity No co-investment Source: 2008 ACA Angel Group Confidence Survey Percent of 5

4% Update industry preferences 15.4% No changes planned 21.5% Other changes 23.

6 Impact of Recession: Appetite for Adding New Ventures to Your Portfolio? Recently decreased No change November, 2008 March, 2009 Aggressively seek new opportunities? Source: 2009 ACA Angel Group Confidence Survey Investment Preference Biotechnology Business Products/ Services Computers & Peripherals Consumer Products/ Services Electronics/ Instrumentation Financial Services Healthcare Services Industrial/ Energy IT Services Media & Entertainment Medical Devices & Equipment Networking & Equipment Other Retail/ Distribution Semiconductors Software Telecommunications Source: 2009 ACA Angel Group Confidence Survey and 2008 Member Directory Percent of 6

Consumer Products/ Services Electronics/ Instrumentation Financial Services Healthcare Services Industrial/ Energy IT Services Media & Entertainment Medical Devices & Equipment

7 Preferred Investment/Company Stage Percent of Seed/Startup Early Stage Expansion Later Stage Source: 2009 ACA Angel Group Confidence Survey and 2008 Member Directory Investors Per Group Average = 43.6 Median = to to to to to Percent of Source: 2009 ACA Confidence Survey and 2008 Member Directory 7

Directory Investors Per Group Average = 43.6 Median = 32.

8 Organization Types % of For Profit 59% (87 groups) Non Profit 25% (36 groups) No Structure 16% (24 groups) 0 LLC LP C-Corp 501c3 501c4 501c6 Non-Profit None Source: 2008 ACA Member Directory/ 2009 membership applications 162 groups reporting ( ) Investment Structure Network/Sidecar (7.8%) Fund (22.2%) Network (69.8%) Source: 2008 ACA Member Directory/ 2009 membership applications 166 groups reporting ( ) 8

2009 membership applications 162 groups reporting (2006-2009) Investment Structure Network/Sidecar (7.

9 Group Led by Members or Hired Manager? Both (3.4%) Manager (41.1%) Members (54.8%) Source: 2008 ACA Member Directory/ 2009 membership applications 146 groups reporting ( ) Key Values for Members Improve Bottom-line of Member Refer angels interested in joining member groups Knowledge and Insight Strong Summit programs and networking opportunities Revamped Members Only Web site, searchable directory VentureSource: large discounts on database and Dow Jones pubs Collaboration Syndication Best Practice Guide release at Summit Public Policy Representing American members in Washington (1 st hearing March 26) Services and Toolkits New partners for exploring angel insurance, background checks 9

interested in joining member groups Knowledge and Insight Strong Summit programs and networking opportunities Revamped Members Only Web site, searchable directory

10 Need More Information? Marianne Hudson Angel Capital Association 8527 Bluejacket St Lenexa, KS

Important Things for Entrepreneurs to Know about Angel Investors

Important Things for Entrepreneurs to Know about Angel Investors Equity Capital Markets Large, Complementary Early Stage Late $26.0B 57,000 deals Mostly early stage Mostly later stage 3,813 deals $29.4B