Overall, angel investment in 2012 showed signs of weakness: fewer investors and only a slight increase in dollars invested. But for women angels, it’s a whole different story.
While the percent of women angel investors is still small — 22% — it jumped 50%, according to the Center for Venture Research, which studies early stage equity financing for high-growth ventures.
Overall, there are more than 330 angel groups in the United States and Canada that are active in start-ups, and funding hit $22.9 billion in 2012 - up 1.8 percent from 2011, when investments totaled $22.5 billion, according to the University of New Hampshire Center for Venture Research. Some 67,030 entrepreneurial ventures received angel funding in 2012.
The number of women investing money into start-ups reached record levels last year as they become a much bigger force in the risky and male-dominated world of angel investing.
Women made up 21.8 percent of active angel investors nationwide in 2012, compared with 12.2 percent the previous year, according to the Center for Venture Research at the University of New Hampshire, which released its annual report on such spending on Thursday.
So imagine my delight this morning to receive the annual report from the Center for Venture Research at UNH, which tallies angel investing activity from the previous year to take the temperature of the current funding landscape.
"If (the deal) is going forward, then it must be seen as an increase in valuation for all the investors involved, which then makes them a larger target for an acquisition or an IPO," said Jeffrey Sohl, director of The Center for Venture Research at the University of New Hampshire's Peter T.
The angel investor market in 2012 continued the upward trend started in 2010 in investment dollars and in the number of investments, albeit at a moderate pace, according to the 2012 Angel Market Analysis released by the Center for Venture Research at the University of New Hampshire.
While only 12 percent of angels were women in 2011, the number is on the rise. “All arrows seem to be pointing up,” according to Jeffrey E. Sohl, Director, Center for Venture Research. “Women are joining existing initiatives, [such as Golden Seeds, an angel network that funds women entrepreneurs].
Women-owned firms start and grow businesses with substantially less outside financing, according to a Department of Commerce survey of women-owned companies across the U.S. That helps to explain why the average women-owned business has 25% lower revenue than the typical male-owned firm in the same industry.
..."You're adding a whole layer of risk to an already very risky investment class," says Jeffrey Sohl, director of the Center for Venture Research at the University of New Hampshire. "With most of these investments, you're going to lose money."