We've written a lot about the downturn in venture capital, including a report from January showing a massive 82 percent investment drop in Washington state during the fourth quarter. But how are angel investors faring?
They too are investing less, according to a report from Center for Venture Research at the University of New Hampshire. Angels pumped $19.2 billion into startup companies last year, a 26 percent decline over the previous year. Interestingly, however, the number of deals only declined by 2.9 percent.
That means angels are still investing, just not as much money. And it makes sense since valuations have decreased substantially for early-stage companies in the past six months.
Meanwhile, the number of active angels held steady at roughly 260,000.
The report had some other interesting findings, especially as it relates to minorities and women investors. Women angels accounted for just 16.5 percent of the market, while women-owned businesses attracted 9.5 percent of funds.
"These data indicate that when women do seek angel capital they fair well, but the need is to increase the number of women entrepreneurs that seek angel capital," the report said.
Minorities accounted for 3.6 percent of angel investors, with minority-owned businesses representing 3.7 percent of those seeking capital from angel groups.
More on the local angel market from Keiretsu Forum, which saw a decline in deals and dollars but an increase in membership last year.
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