For the second year in a row there's been a retreat from seed and start-up stage deals in New Hampshire's angel investor market. And, according to the Center for Venture Research at the University of New Hampshire, this indicates that angels are seeking stability by investing in early stage ventures with more of a track record than a seed or start-up firm.
“Angels continue to keep their investment allocations in the seed and start-up stage low, at 24 percent of investments, which is similar to 2017 (20 percent) and 2016 (27 percent),” says Jeffrey Sohl, director of the UNH Center for Venture Research. “Historically angels have been the major source of seed and start-up capital for entrepreneurs and while that stage remains close to a quarter of angel investments, angel seed/start-up investments have remained consistently below the pre-2008 peak of 55 percent. This steady decline in allocations signifies that there continues to be a need for seed and start-up capital for both new venture formation and job creation.”
The center’s analysis found the average angel deal valuation in the first half of 2018 was $3.7 million, an increase of 14 percent from the 2017 average deal valuation of $3.24 million.
Angel investments continue to contribute to job growth with 3.2 jobs per angel investment.
The full analysis is available at https://paulcollege.unh.edu/sites/default/files/resource/files/q1q2-2018-analysis-report.pdf.
The Center for Venture Research has been conducting research on the angel market since 1980. The center's mission is to provide an understanding of the angel market through quality research. It is dedicated to providing reliable and timely information on the angel market to entrepreneurs, private investors and public policymakers.