Angel Funders Report 2021 - Flipbook - Page 19
FIGURE 5. Groups Increased Both Their Initial and Follow-on Deals
In 2020, angel groups increased the number of both their initial and follow-on
investments, reflecting their commitment to support companies throughout the
pandemic. The typical group executed nearly 20% more follow-on deals per
group. Compared to 2019, fewer members participated, on average, in new
deals, but slightly more members participated in follow-ons.
Given the focus on early-stage investments, it is less common for angels to make
an initial investment in a later stage, larger round when a company is raising more
than $10 million. Most angel deals are done during smaller, earlier rounds, when
angels have more leverage in setting the terms and positively influencing the
companies since their investments represent a larger portion of the total shares.
With impact far beyond their investment dollars in these early rounds, angels
make sure companies are well managed and mentor CEOs to help them grow
successful companies (Figure 6).
16 | Investing by the Numbers
FIGURE 6. Most Initial Deals Are In Smaller Rounds
Seed vs. Later Stage Investments
While the preponderance of angel investing activity is in the earliest funding
rounds, Figure 7 shows an increase in funding through later rounds, with more
than 40% of angel capital going into Series A deals. Series B & C deals represent
a small sample size within this study, resulting in some of the annual variation, but
it is noteworthy to recognize that about 25% of angel funding in 2020 occurred
during Series B and Series C rounds.
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