U.S. Angel Investing Hits $12.7B in First Half 2006; VCs Invested $11.9B
Investments
in the U.S. angel investor market increased by 15% to $12.7
billion in the first half of 2006 over the same period in 2005,
with the health care services/medical equipment the sector of choice for
angels, according to the latest research from the Center
for Venture Research at the University of New Hampshire
A total of 24,500 entrepreneurial ventures received angel funding in the first half of 2006, a 6% decline from the first half of 2005. The number of active investors in the first half of 2006 was 130,000 individuals, 3% above the first half of 2005. The average deal size increased by 22% over the first half of 2005.
Angels continue to be the largest source of seed and start-up capital in the United States, with 40% of the first half of 2006 angel investments in the seed and start-up stage. This preference for seed and start-up investing is followed closely by post-seed/start-up investments of 45%.
Meanwhile venture capitalists investments grew to $6.3 billion in 856 deals during the second quarter 2006 and $5.6 billion in 761 deals in the first quarter for a total of $11.9 billion for the first half of 2006, according to MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association.
