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ACA survey finds angels increased seed stage investment in 2021

February 09, 2023

The Angel Capital Association (ACA) reports seed stage investments accounted for almost 60% of the total angel deals in 2021, up from 50% in 2020.  These seed stage angel investments represented more than half of the $950 million invested by 180 ACA member groups in 2021.  ACA estimates that portfolio companies raised more than $5 billion, suggesting leverage of more than 5X their initial angel investments. Based on member-submitted direct investment data, the 2022 Angel Funders Report provides an overview of early stage investment trends. Angel investments in health and life sciences firms surpassed those in software, fintech, and hardware. Medical technology and health technology markets, while down from 2020’s COVID-driven levels, remained the leading verticals in 2021.

Diversity in angel investments proved to be a mixed bag in 2021. Women-led firms landed fewer deals, but those initial investments increased by an average of $99,000 to reach an average initial investment of $296,000. The average initial investment in Black-led firms was about 50% less, dropping from $299,000 in 2020 to $146,000 in 2021. Meanwhile, initial angel investments in companies with Asian or Asian American CEOs nearly doubled to $287,000. And the average initial investment in Latino-led firms surged, more than tripling to $416,000.

The ACA Angel Capital Report 2022 is available here:  https://www.angelcapitalassociation.org/angel-funders-report-2022/