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Mid-Atlantic, NY Regions Gaining Ground in U.S. Angel Market, According to Report

April 03, 2014

Together, New York and the Mid-Atlantic region were home to as much angel investment activity as California, according to the 2013 Year in Review edition of the HALO Report, published by Silicon Valley Bank and the Angel Resource Institute. Last year, California continued its reign as the top single region for angel activity, with 18.6 percent of U.S. deals and 19.6 percent of dollars. For the first time however, the combined activity of New York and the other Mid-Atlantic states reached levels similar to California, with 18.6 percent of deals and 19.7 percent of dollars. Activity dipped in New England, the Southeast and the Northwest. Combined activity in the Internet, Healthcare and Mobile & Telecom sectors represented more than three-quarters of all angel deals.

The 2013 HALO Report is based on data collected by CB Insights and the Angel Resource Institute, which tracked 884 angel deals last year totaling $1.1 billion. The researchers found angel activity to be on the rise, with an annual increase in the number of high-valuation deals.  While the median round size for angel deals remained steady, the average size of rounds in which non-angels invested alongside angel investors grew from $2.4 million to $2.5 million. Funding rounds grew by a substantial margin in the Healthcare sector, from an average round size of $1.1 million to $1.6 million. Round size also grew in the two top sectors, Internet and Mobile & Telecom.

Among these three top sectors, Internet deals and dollars showed the most growth in 2013, according to the report. Internet deals grew from 33 percent to 38.5 percent of venture activity. Together, Internet and Mobile & Telecom represented about half of the angel market.

The researchers suggest that, although California continues to clearly dominate the angel landscape, the angel market is slowly becoming more geographically distributed throughout the country. As recently as 2011, New England clearly was the second most important center for angel activity. In 2012 and 2013 however, the map changed, with most of the lower-ranking regions increasing their share of national investment and New England dropping from 14.2 percent to 11.3 percent of activity.

Download the report…

capital, angel capital