Comments for Angel Investor - Bill Payne & Associates

Comment on Angel Group Deal Flow Statistics by admin

admin — Wed, 25 Jan 2012 16:09:24 +0000

Hi Alan – Let me see if I can do justice to your questions:
1. How many companies seek a first round of investment in a typical year? Angels are funding 50,000 to 60,000 companies per year (J. Sohl, U of NH). 40% are seed/startup stage, 60% are early or growth stage. At least half are receiving their first round of angel financing.
2. How many rounds of angel investment do companies raise before an institutional round? This is a two-part question: Typically, companies raise 2-3 rounds of angel capital. Some raise more, some achieve positive cash flow with 1-3 rounds, some raise venture capital. BUT, very few angel funded companies raise venture capital. About 1000 companies raise their first round of institutional money each year, while angels probably fund 30,000 companies per year. So, you can see, the statistics suggest that VC funding is rare for angel funded companies.
Hope this help!
Bill

Comment on Angel Group Deal Flow Statistics by Alan

Alan — Wed, 25 Jan 2012 04:31:16 +0000

Bill,

In an “average” year, approximately how many companies seek a first round of angel investment?

How many rounds of angel investment would the “average” company seek before advancing to an institutional round?

I am attempting to size the angel deal flow in the US.

Thanks in advance for any assistance or answers you could offer.

Comment on 2011 Valuation Survey of North American Angel Groups by admin

admin — Tue, 24 Jan 2012 16:51:37 +0000

Thanks for your feedback! I certainly agree that a cut by industry would be useful, but I must tell you that the database will be much more skinny and difficult to obtain. This is a one-person, volunteer effort. Nonetheless, the 2012 survey will add a few angel groups, a few seed/stage VCs and give investors the opportunity to input data for multiple business verticals. I intend to continue to focus on the pre-revenue stage of development.

Comment on 2011 Valuation Survey of North American Angel Groups by John

John — Tue, 24 Jan 2012 16:37:41 +0000

Bill,

I agree with Brad’s comment. This could be most valuable if cut by industry and stage. For example, for medical tech companies, it suspect valuations average higher but have a flatter curve based upon stage of development and type of FDA approval needed.
We find this here in MN.

Great effort – keep up the good work

John

Comment on A Bubble for Seed Stage Valuation by Bill Lyons

Bill Lyons — Sat, 21 Jan 2012 00:23:58 +0000

Great tips thx!

Comment on Startup Valuations: The Venture Capital Method by Affiliate Marketing

Affiliate Marketing — Tue, 10 Jan 2012 14:46:50 +0000

You have a helpful article. Thanks for sharing.

Comment on Startup Valuations: The Venture Capital Method by Aquaponics 4 You

Aquaponics 4 You — Tue, 10 Jan 2012 04:45:22 +0000

Thanks for the post. It was really a helpful article.

Comment on Startup Valuations: The Cayenne Valuation Calculator by day care center

day care center — Tue, 03 Jan 2012 00:11:47 +0000

Thanks for taking your time to publish.

Comment on Crowd Funding – A Critique for Entrepreneurs and Investors by Mark Nowotarski

Mark Nowotarski — Sat, 31 Dec 2011 22:19:43 +0000

Bill,

I’ll be on a “legal issues in crowdfunding” panel at the spring ABA meeting in Washington. I’ll be covering the patent issues.

Are there any issues you think ought to be brought to the audience’s attention?

Mark Nowotarski
Patent Agent Reg. No. 47,828

Comment on Startup Valuations: The Venture Capital Method by Ab Circle Pro Results

Ab Circle Pro Results — Thu, 29 Dec 2011 06:52:00 +0000

You have some good points on this particular topic. No wonder why you were able to write a good and very useful article like this one. Thanks!