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AZ Tech Beat | March 26, 2017

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Software sector leads in deal flow for angel groups

Software sector leads in deal flow for angel groups
Tishin Donkersley

Today the Angel Resource Institute at Willamette University released the Q3 2015  HALO report and software companies are leading the charge for deal flow, with the healthcare sector realizing an increase in overall funding.

For number of deals, California blows the country away with 21.1 percent, with the Great Lakes and New England region tying for second and Texas coming in third. Here in the Southwest, the region tied with the Southeast at 9.1 percent.

Courtesy of Angel Resource Institute

Courtesy of Angel Resource Institute

 

As for the number of dollars being invested from the regions, there’s no surprise that California wins again, followed by New England then Great Lakes; the Southwest came in 7th with 7.5 percent of money flow.

Another interesting stat is that the most active angel groups for this quarter came out of California, Texas and New York. Arizona angels did not make the list this quarter.

2015 Thru 3Q Share of Angel Group Dollars by Region. Courtesy of Angel Resource Institute

2015 Thru 3Q Share of Angel Group Dollars by Region. Courtesy of Angel Resource Institute

 

Investments in the software industry continues to dominate the sector for the last 12 months, back to 2014 Q3, but went down a bit to 35.8 percent in Q3 from 38 percent in Q2. As for the number of Angel Group dollars by sector, 50 percent went to healthcare and Internet services.

Courtesy of Angel Resource  Institute

Courtesy of Angel Resource Institute

 

The average round sizes increased quarter over quarter equaling $1.41 million, and the overall money pot grew when angels pair up with non-angels averaging $3.5 million per round. Startups will be happy to know that the Median seed pre-money valuation increased to $4M in 2015 thru 3Q, a 33 percent increase from 2014, which is the highest valuation in the Halo Report to date.

The 2015 Q3 ARI HALO Report data is based on 7,261 deals totaling $41.3B in rounds including co-inventors.

Read more about the HALO Angel Report here.

Read about AZ startups getting funded here.