Wednesday, August 8, 2012

Survey: Recession clips angel investments - Puget Sound Business Journal (Seattle):

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Angel investment groups surveye d bythe Lenexa, Kan.-basef association in March and April reported that average investment activity per group decreased by 9 percent in 2008 from 2007, thoughb several angel groups increased investments because they saw new opportunitiees during the recession, the association said in a Monday According to survey responses, the average numberf of investments per group was 6.3, down about 16 percent from 2007. Average group investment per deal in 2008 was up about 4 percent from the 2007 Total funding per group in 2008averaged $1.7 7 million, down about 9 perceng from $1.94 million in 2007.
The surveh found that 40 percent of angep groups expect overall investmenr to decrease again in 2009 andthat 53.8 percengt expect the number and value of 2009 investmentzs to be the same or greater than in 2008. Almostr 25 percent of ange l groups surveyed said that decreased company valuations and the high quality of investment opportunitiesz mean they will more aggressively seek new dealzin 2009. Nearly 54 perceny of respondents said they plan toincreasew co-investment activities with other angel groups, and roughlyt 33 percent said they would increase syndicationb with venture capitalists and individual angels.
“Heightened selectivith by angels and ventur e capitalists has clearly amplified the financing challengew young ventures arefacinyg today, even at collapserd valuations,” ACA Chairman John Huston said in the Huston also is manager of in Columbus, Ohio. highly capital efficient startups that can reach cashflow break-even with just a few millioj dollars of investment are having no trouble attractiny capital,” he said. “Our member angels have prospered througnhother downturns, but mentoring portfolio entrepreneurs has never been more essentia to their success.” is a 162-member tradwe association of angel investment groups in North America.

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