ANGEL INVESTORS STEADY BUT

MORE CAUTIOUS IN FIRST HALF OF 2008

That's the headline in the latest report from NH's own Center for Venture Research. Founded in 1984 and run by Professor Jeff Sohl for many years now, this group cranks out great data around nationwide Angel investment activity - as can you see below this is great info for entrepreneurs, investors and policymakers alike.  At some point we will spend time with Jeff and learn what he thinks can drive an even higher level of angel investment, in the meantime here are the numbers:  Angels continue to be the largest source of seed and start-up capital, with 46 percent of first and second quarter angel investments in the seed and start-up stage, on par with the like period last year (42 percent).  They are now trying to reduce their risk exposure by including more angels in each deal, according to the Angel Market Analysis for the first and second quarters of 2008 released by the Center for Venture Research at the University of New Hampshire.  According to the analysis, “Angel Investors Steady But More Cautious in First Half of 2008,” total investments in the first and second quarters of 2008 were $12.4 billion, an increase of 4.2 percent over the same period last year. A total of 23,100 entrepreneurial ventures received angel funding in the first half of 2008, a slight decrease of 3.8 percent from the same period last year, and the number of active investors was 143,000 individuals, an increase of 2.1 percent over the same period in 2007.  Software accounted for the largest share of investments, with 18% of total angel investments in Q1,2 2008, followed by Healthcare Services/Medical Devices and Equipment (17%) and Industrial/energy (10%), potentially reflecting an increasing appetite for green technologies.  Biotech has dropped from the top three sectors for the first time in several years while Retail and Media have solidified their previous presence in the top six preferred sectors.   

Sector	Software	Healthcare	Industrial/Energy	Retail	Biotech	Media
Deals	18%	17%	10%	8%	8%	8%