Angel Investments Down, $ Per Deal Up

From the Potomac Tech Wire

Angel investment groups on average invested 9% less last year than in 2007, according to a new survey by the Angel Capital Association (ACA). Despite a 4% increase in the average investment per deal ($276,918), the average number of investments per group fell 16%. Angel investors cited a decrease in individual member wealth, the overall decline of the economy and a lack of exit opportunities as the most prominent reasons for the decrease. “Heightened selectivity by angels and venture capitalists has clearly amplified the financing challenge young ventures are facing today, even at collapsed valuations,” said John Huston, chairman of the ACA. “However, highly capital efficient start-ups that can reach cash flow break even with just a few million dollars of investment are having no trouble attracting capital.”

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