Median Seed Pre-Money Valuations Increase to $4M, Highest Ever in HALO Report History

Angel group valuations and deals continued to rise through the third quarter of 2015, according to the most recent HALO Report, a publication of the Angel Resource Institute at Willamette University in Oregon. While median angel-only round sizes were $500,000 in both the first and second quarters of 2015, the third quarter saw this amount increase 45 percent to $725,000. Through the third quarter, median seed pre-money valuations increased to $4 million, a 33 percent increase from 2015, and the highest valuation in the Halo Report to date. Other notable findings in the report include:

• Software continued as the top industry by deal flow, capturing nearly 36 percent of all deals in Q3 2015. Healthcare services represented 30 percent of total angel dollars. Internet and healthcare alone have accounted for 50 percent of total capital invested in the past five quarters.
• Texas angel groups were very active in the third quarter. Although Silicon Valley’s Tech Coast Angels had the highest number of deals through Q3 2015, the Houston Angel Network and the Central Texas Angel Network ranked second and third, respectively.
• Approximately one-fifth of angel activity (21.1 percent of deals, 19.7 percent of dollars) occurred in California. Other regions with considerable activity include the Great Lakes Region (12.9 percent of deals, 14.5 percent of dollars), New England (12.1 percent of 15.5 percent of dollars), and Texas (11.2 percent of deals, 9.7 percent of dollars). Although the Southeast region represented just 9.1 percent of angel deals, 13.8 percent of angel group dollars invested through Q3 2015 went to the region.