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PrintAngels, it seems, may be feeling a little less angelic these days, at least when it comes to financing seed and start-up companies. Total angel investment rose to $25.6 billion in 2006, the fourth consecutive increase since 2002, according to the center for Venture Research. But the National Science Board in its Science and Engineering Indicators 2008 notes these risk-takers are growing more conservative in their investment. The report finds that a little more than half of all angel investment financing was for seed and startup companies in 2006, down from nearly 60 percent in 2002. Angel investment in early-stage companies grew to 47 percent from 41 percent during the same period. Healthcare and medical devices garnered the largest share of angel investment with a total of 21 percent in 2006, a 5 percent increase from 2004. Biotechnology companies grabbed 18 percent of the pie in 2006, an 8 percent increase over 2004 numbers.
AVERAGE INVESTMENT OF ANGEL AND VENTURE CAPITAL PER BUSINESS: 2002-2006
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Sources: Center for Venture Research, University of New Hamshire, Thomson Financial, National Venture Capital Association Yearbook 2007 from the National Science Board's Science and Engineering Indicators 2008.
SHARE OF ANGEL AND VENTURE CAPITAL INVESTMENT BY FINANCING STAGE: 2005-06
Sources: Center for Venture Research, University of New Hamshire, Thomson Financial, National Venture Capital Association Yearbook 2007 from the National Science Board's Science and Engineering Indicators 2008.
SHARE OF TOP THREE TECHNOLOGY AREAS RECEIVING ANGEL CAPITAL INVESTMENT 2003-2006
Sources: Center for Venture Research, University of New Hamshire from the National Science Board's Science and Engineering Indicators 2008.
