Study: Angel investors spend less on more in first half of 2009 - South Florida Business Journal:
Angel investors across the country spent fewer dollars, but backed more companies during the first half of 2009 compared to last year, according to a study released Tuesday by the Center for Venture Research at the University of New Hampshire.
The study said investments were down 27 percent to $9.1 billion during the six months ended June 30. But, 24,500 entrepreneurial ventures received financing, 6 percent more than last year. The number of active investors was flat, at 140,200.
“While angels have not significantly decreased their investment activity, they are committing less dollars resulting from lower valuations and a cautious approach to investing,” center director Jeffrey Sohl said in a statement.
Health care services/medical devices and equipment was the largest sector, receiving 28 percent of the capital raised. Software and electronics/hardware shared second place, with 14 percent each.
Angel investors also favored later-stage companies. Investments in seed- and startup-stage companies received 27 percent of the capital raised, a decrease of 19 percent from first same six months in 2008.
“This change in investment behavior is likely an indication of both a need to increase investments in existing portfolio companies and a change in angels’ risk tolerance,” Sohl said.