Move towards Healthcare for Angel Investments

by | Posted: Nov 22, 2013 | Healthcare News

A significant trend has emerged in angel investments in the United States. Angel investor groups are heading towards healthcare, if research on the first quarter of the current financial year is to be believed. The mean deal has actually dropped from $860,000 to $800,000. The median round is now at $680,000. With regard to co-investment of angels though, the median round size is $1.5 million, a figure that has been quite steady for the previous five quarters. Three out of four angel group deals are syndicated.

More Geographic Spread of Investment

Greater geographic investment distribution and syndication have been the main trends in angel investing according to Rob Wiltbank of the Angel Resource Institute. This is based on the Halo Report, the latest quarterly survey of the various investment activities of angel groups in the first quarter of the present financial year. Wiltbank suggests that this information points to the cropping up of new attractive ventures in the United States.

Angel investors have been carrying out more activity beyond Boston and Silicon Valley. There was more angel investment money spent in the southwest region of the United States than in the state of California. Companies based in New York and the region of the Great Plains had the biggest rise in deals involving angel groups from the previous year.

Rise in Healthcare Sector Deals

More angel investment groups were into healthcare deals. Nineteen percent of all angel investment deals and 23% of angel investment dollars were spent on the healthcare sector. This was a significant growth over last year’s first quarter.

Among all the angel groups the following investors put in the most money per deal in the past year – Golden Seeds, Golden Angels Investors, Nashville Capital Network, Tech Coast Angels, Houston Angel Network, Oregon Angel Fund and Jumpstart New Jersey Angel Network.

 

Julie Clements

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