The Halo Report is a nationwide survey of Angel Groups' investment activity produced by the Angel Resource Institute, Silicon Valley Bank and CB Insights. The Q2 2013 Halo Report shows angel investment round sizes dipped up to a median of $590K per deal, pre-money valuations remain stable at $2.5 million and 74% of angel group deals are syndicated. When angel groups co-invest with other types of investors, the media round size goes up to $1.95M. US angel investment continues to be dispersed nationwide. For the first time, the report separates Texas, which has 11% of angel group deals in Q2, behind California, New England and the Southeast. New England-based angel groups closed deals worth slightly more than deals in California in Q2. The sectors getting funding remain concentrated in Internet, healthcare and mobile, with 71% of completed Q2 deals and 79% of Q2 dollars in these categories.

1. Angel Group Update: Q2 2013

2. Table of Contents
Q2 2013 Highlights p. 4
National Trends p. 6
Most Active Angels p.13
Regional Trends p. 16
Sector Trends p. 21
About the Halo Report p. 24
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3. Q2 2013 Highlights
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4. Angel Group Update: Halo Report Q2 2013
Highlights
• Median Angel Round Size Dips to
$590K in Q2 p.6
• Early Stage Pre-Money Valuations
Remain Stable at $2.5M p.7
• 74% of Angel Group Deals are
Syndicated p. 10
Most Active Angel Groups
Total Deals Q2
•Central Texas Angel Network
•Golden Seeds
•Desert Angels
•Dingman Center Angels
•Tech Coast Angels
•Alliance of Angels
•Houston Angel Network
•Launchpad Venture Group
•New York Angels
•Sand Hill Angels
Angel Groups Active in
Education Technology
•AIM Group
•Golden Seeds
•Investors’ Circle
•Maine Angels
•Sand Hill Angels
•Sound Board Angel Fund
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5. National Trends
5

6. Median Angel Round Size Q2 2013
Stable Year Over Year, Smaller than Q1
$M
$900K
$900K
$870K
$710K
$1.00
$700K
$770K
$590K
$600K
Q2 2012
Q3 2012
$970K
$590K
$0.50
$0.00
Q4 2012
Median Round Size
Q1 2013
Q2 2013
Mean Round Size
*Angel rounds include angels & angel groups only
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7. Median Early Stage Pre-Money Valuation Rolling Year
Steady at $2.5M (Q2 2013)
$2.5M
$1.2M
Median
$3.0M
3rd Quartile
$5.5M
1st Quartile
$0.11M
*Including all rounds with angel groups before Series A
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8. Q2 2013 Median Round Size Trending up $1.95M when Angel
Groups Co-Invest with Other Types of Investors
$M
Angels with Other Investors
$3.00
$2.52
$2.50
$2.29
$2.48
$2.83
$2.04
$1.95
$2.00
$1.50
$1.47
$1.59
$1.55
$1.40
$1.00
$0.50
$0.00
Q2 2012
Q3 2012
Q4 2012
Median Round Size
Q1 2013
Q2 2013
Mean Round Size
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9. 1H 2013 Median Round Sizes for Angel Groups in Top Sectors:
Internet, Healthcare, & Mobile/Telecom
$M
$1.52
$1.50
$1.18
$1.00
$1.01
$970K $920K
$1.10
$1.00
$1.00
$750K
$0.50
$0.00
Healthcare
1H 2012
Internet
2H 2012
Mobile / Telecom
1H 2013
*For all deals involving angel groups, includes co-investors
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10. Angel Groups Co-Invest 74% of Deals in Q2 2013
100%
27.1%
25.9%
25.8%
72.9%
27.5%
80%
74.1%
74.2%
Q4 2012
Q1 2013
Q2 2013
46.0%
60%
40%
72.5%
54.0%
20%
0%
Q2 2012
Q3 2012
Not Co-Invested
Angel Group Co-Investment
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11. Angel Groups Invest Close to Home
72% of Q2 2013 deals completed in home state of investor group & company
#
100%
90%
85%
87%
85%
79%
80%
73%
76%
78%
70%
70%
86%
72%
60%
50%
40%
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Investor & Company in Same State
Investor & Company in Same Region
Q2 2013
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12. Active Angel Groups
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13. Most Active Angel Groups Q2 2013 – Total Deals (Alpha Order)
Seattle, WA
Tucson, AZ
College Park, MD
Austin, TX
5th
NY, MA, CA
Boston, MA
Houston, TX
Sunnyvale, CA
New York, NY
Southern CA
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14. Angel Groups Active in Education Technology
(Over the past 12 months)
CA, MA, NY
Alabama
Portland, ME
National Group
Sunnyvale, CA
Morristown, NJ
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15. Regional Trends
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16. Texas Jumps Out of Southwest in Q2 2013 Deals
Share of Angel Group Deals by Region Q2 2013
Northwest
New York
6.3%
8.9%
Great Plains
10.5%
California
17.3%
13.6%
Great Lakes
6.8%
New
England
Mid-Atlantic
7.9%
Southwest
5.8%
Southeast
12.0%
Texas
Texas
11.0%
11.0%
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17. Q2 2013 Share of Angel Group Deals by Region
Q2 2012
100%
90%
80%
4.9%
6.3%
10.4%
Q1 2013
10.4%
10.4%
Q2 2013
8.9%
6.8%
60%
6.3%
10.4%
4.9%
6.8%
10.4%
6.3%
5.8%
8.7%
10.5%
50%
14.6%
40%
30%
20%
10%
0%
13.7%
12.2%
7.7%
10.7%
Great Plains
7.9%
10.2%
70%
New York
11.0%
12.0%
13.6%
Mid-Atlantic
Texas
Northwest
Southwest
Great Lakes
Southeast
8.7%
New England
16.1%
14.2%
17.3%
California
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18. New England Takes Lead for Share of Dollars in Q2 2013
Share of Angel Group Dollars by Region Q2 2013
Northwest
New York
4.6%
5.9%
Great Plains
14.5%
California
17.1%
18.7%
Great Lakes
9.7%
New
England
Mid-Atlantic
8.9%
Southwest
4.5%
Southeast
10.1%
Texas
6.1%
Texas
6.1%
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19. Q2 2013 Share of Angel Group Dollars
Q2 2012
100%
90%
5.3%
8.5%
Q1 2013
7.2%
10.8%
Q2 2013
5.9%
New York
9.7%
Great Plains
6.8%
8.9%
70%
9.2%
8.9%
60%
6.7%
7.7%
6.7%
6.1%
4.6%
4.4%
11.7%
14.5%
16.5%
11.5%
10.1%
8.3%
10.1%
8.2%
9.6%
80%
3.7%
50%
40%
30%
20%
Mid-Atlantic
Texas
Northwest
Southwest
Great Lakes
18.7%
Southeast
New England
10%
19.3%
16.6%
17.1%
California
0%
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20. Sector Trends
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21. Internet, Healthcare & Mobile Deals Combine for 70% of Q2 2013 Deals
Q2 2013 Share of Angel Group Deals by Sector
100%
Q2 2012
9.3%
1.0%
8.8%
Q1 2013
Q2 2013
11.5%
1.6%
4.2%
5.8%
6.3%
70%
6.4%
14.8%
2.2%
2.2%
7.7%
3.3%
60%
12.7%
14.8%
19.8%
19.9%
Other
13.6%
90%
80%
7.8%
50%
40%
23.0%
Energy & Utilities
Software
Computer Hdwr &
Svcs
Industrial
Mobile & Telecom
30%
Healthcare
20%
30.9%
10%
35.2%
37.2%
Internet
0%
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22. Q2 2013 Share of Angel Group Dollars by Sector
Q2 2012
100%
4.2%
0.9%
9.1%
Q1 2013
80%
7.3%
5.8%
13.4%
90%
8.8%
3.4%
2.1%
4.2%
6.5%
Q2 2013
4.4%
2.7%
5.8%
3.2%
5.1%
14.2%
70%
Other
Energy & Utilities
12.7%
Software
60%
50%
27.2%
23.1%
35.9%
Industrial
40%
Mobile & Telecom
30%
20%
32.2%
10%
Computer Hdwr &
Svcs
35.8%
Healthcare
30.3%
Internet
0%
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23. About the Halo Report™
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24. What is the Halo Report™?
Angel Group Investment Trends: The Angel Resource Institute, Silicon Valley Bank and
CB Insights set out to raise awareness of early stage investment activities by angel
investment groups. The Halo Report is the result. The research series highlights angel
investment activity and trends in North America and provides much sought after data that
has not been previously available to entrepreneurs or early stage investors.
The Halo Report includes aggregate analysis of investment activity by angels and angel
groups and highlights trends in round sizes, location and industry preferences. The data is
collected via survey and aggregation of public data using CB Insights innovative data
analyses.
Get Involved: Angel groups and individual angel investors interested in including their data
in the Halo Report should contact Sarah Dickey, ARI Vice-President of Research: 913-8944700 and sdickey@angelcapitalassociation.org.
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25. Understanding the Data:
Special Round Types and Industry Sectors
The Halo Report™ provides analysis and trends on US angel and angel group activity.
Angels and angel groups invest alone, together, and with many other types of investors.
Unless otherwise noted the Halo Report data includes all rounds that have at least one
angel group participating and may include other types of investors in those rounds.
This report discusses angel group investment trends for 1H 2013, which represents a
total of 379 deals and $461M in total rounds including co-investors.
A few charts report on an “Angel Round,” a special classification of investment when
angel groups invest alone or just with other angels and angel groups.
Unless otherwise noted, values of less than <1% are included, but are not labeled or
noted as a change in activity.
Halo Report Industry Sectors
Internet
Mobile & Telecom
Software
Energy & Utilities
Computer Hardware & Services
Healthcare
Industrial
Automotive & Transportation
Business Products & Services
Consumer Products & Services
Electronics
Environmental Services &
Equipment
Financial Services
Food & Beverages
Leisure
Media
Metals & Mining
Retail
Risk & Security
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26. Halo Report Contacts
Angel Resource Institute
Sarah Dickey, sdickey@angelcapitalassociation.org
The Angel Resource Institute (ARI) is a charitable organization devoted to education, mentoring and research in the
field of angel investing, a growing driver of our entrepreneurial economy. ARI was founded by the Ewing Marion
Kauffman Foundation. The programs of ARI include educational workshops and seminars, research projects and
reports, and information about angel investing for the general public. ARI is affiliated with the Angel Capital
Association, the professional association of angel groups in North America. More information is available at
www.angelresourceinstitute.org.
Silicon Valley Bank
Carrie Walsh, cwalsh@svb.com
Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and
premium wine businesses. SVB provides industry knowledge and connections, financing, treasury
management, corporate investment and international banking services to its clients worldwide through 28 U.S. offices
and six international operations. (Nasdaq: SIVB) www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group.
Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB
Financial Group is also a member of the Federal Reserve System.
CB Insights
Anand Sanwal, asanwal@cbinsights.com
CB Insights is a National Science Foundation-backed data-as-a-service firm that collects information on private
companies and their investors and acquirers. CB Insights data and technology is used by firms to make better
marketing, procurement, lending, acquisition and equity investment decisions and to gather data-driven market and
competitive intelligence. The firm's data is regularly cited by leading media publications including the New York
Times, Forbes, BusinessWeek and Fast Company among others. For more
information, visit http://www.cbinsights.com.
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27. Angel Resource Institute and Silicon Valley Bank co-produce the Halo Report™ with data powered by CB Insights.
Angel Resource Institute and CB Insights are independent third parties and are not affiliates of Silicon Valley Bank.
This material, including without limitation to the statistical information herein, is provided for informational purposes only. The
information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or
other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing
relating to the material should be construed as a solicitation, offer or recommendation to acquire or dispose of any investment
or to engage in any other transaction.
©2012 SVB Financial Group. All rights reserved. SVB>, SVB Financial Group, and Silicon Valley Bank are registered
trademarks.
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