Ten Bottom Line Stats About Angel Investing

1.

"Fast-growing young firms, comprising less than 1 percent of all companies, generate roughly 10 percent of new jobs in any given year." (Kauffman Foundation)

2.

"…less than 3% of young companies raise equity from external investors." (BusinessWeek)

3.

Nationally, only 312 seed stage companies received funding in 2009.  (National Venture Capital Association)

4.

"…while venture capital is important for the development and growth of certain firms, it doesn’t appear to be universally important for creating high-growth companies. Of several hundred fast-growing companies on the Inc. list over the last decade, only 16 percent ever received a venture capital investment.” ("High-Growth Firms and the Future of the American Economy," Kauffman Foundation, March 2010)

5.

"Industries receiving the most dollars in first-time financings in 2009 were Biotechnology, Industrial/Energy and Software. Industries with the most first-time deals in 2009 were Software, Media/Entertainment, and Biotechnology." (VC Investments Q4 '09 – Money Tree – Press Release)

6.

"Women run 40 percent of privately-owned businesses, but only 8 percent of venture-backed tech start-ups." (Inc.) 

7.

In 2009 women angels represented 11.3% of the angel market. In 2009, women angels represented 11.3% of the angel market. (March 31, 2010 report, Center for Venture Research)

8.

At U.S. start-up programs, the mentors are predominantly male: Capital Factory, 18 of 20, DayOne Ventures, 9 of 9, LaunchBox, 29 of 31, Tech Stars, 144 of 158,  Y Combinator, 3 of 4.

9.

"…when women do seek angel capital they lag behind the market yield rate by 5%." (Center for Venture Research)

10.

"…at least half of all angel investments lose money and 48% of investments with final outcomes result in a 100% loss." (Wall Street Journal)

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Comments

  1. Wow. A real eye-opener for women seeking start-up capital, eh?

    thanks for posting!

  2. It sure is! According to these stats:

    “…when women do seek angel capital they lag behind the market yield rate by 5%.”

    an angel investor risks ROI when backing a woman instead of a man! Individual exceptions exist, of course, but how daunting to be either one – an entrepreneur seeking funding or an angel investor seeking an entrepreneur to fund.

  3. Thanks, Monica Hebert, for this link:

    “What If Women Ran Wall Street?”

    http://nymag.com/news/businessfinance/64950/

  4. Thanks, Ken Maready, for this link:

    “Out of the Loop in Silicon Valley”

    http://dealbook.blogs.nytimes.com/2010/04/19/out-of-the-loop-in-silicon-valley/?emc=eta1

  5. High Fliers: Top 50 Women-Led Companies, Wall Street Journal, 4/23/10:

    http://online.wsj.com/article/SB10001424052748703876404575200233544824348.html

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