The angel investor market in 2016 saw a decrease in investment dollars and deal size, according to the latest angel market analysis released by the Center for Venture Research at the University of NH in Durham.
Total investments in 2016 were $21.3 billion, a decrease of 13.5 percent over 2015, and 64,380 entrepreneurial ventures received angel funding in 2016, a decline of 9.5 percent over 2015 investments. The number of active investors in 2016 was 297,880 individuals, a decrease of 2.3 percent from 2015.
“The change in both total dollars and the number of investments resulted in a deal size for 2016 that was smaller than in 2015,” says Jeffrey Sohl, director of the UNH Center for Venture Research. “While these data indicate a cautious retreat in terms of dollars invested and deals, angels increased their appetite for seed and start-up investing, and the associated risk.”
The center’s analysis found that angel investments in the seed and start-up stage increased in 2016, with 41 percent of angel investments in the seed and start-up stage, compared to 28 percent in 2015. Angel investments continue to be a significant contributor to job growth with the creation of 263,950 new jobs in the U.S. in 2016, or 4.1 jobs per angel investment.
The full 2016 Angel Market Analysis is available here.
Current Issue - April 2024