The angel investor market in 2009, on the heels of a considerable contraction in investment dollars in 2008, exhibited a modest decrease in investment dollars but little change in the number of investments. Total investments in 2009 were $17.6 billion, a decrease of 8.3% over 2008, according to the Center for Venture Research at the University of New Hampshire. However, a total of 57,225 entrepreneurial ventures received angel funding in 2009, a reserved 3.1% increase from 2008, and the number of active investors in 2009 was 259,480 individuals, virtually unchanged from 2008. The small decline in total dollars, coupled with the increase in investments resulted in a smaller deal size for 2009 (a decline in deal size of 11.1% from 2008). These data indicate that while angels have not significantly decreased their investment activity, they are committing less dollars resulting from lower valuations and a cautious approach to investing. Significant changes did occur in the critical seed and start-up stage investment landscape.
Download the Full Year 2009 Angel Market Analysis Report
Director, Jeffrey Sohl