Angel Funders Report 2021 - Flipbook - Page 35
The Faces of Portfolio Company CEOs
Angel investors often stress the importance of the management team when
making investment decisions. Interestingly, this does not mean that the CEO of
the prospect company must have prior CEO experience, although a strong track
record may enable companies to raise more capital. In fact, angels are very willing
to fund first time CEOs. Figure 19 shows over 60% of CEOs funded by angels
were led by first-time CEOs. This has been consistent over the years.
FIGURE 19. Angels Consistently Back New CEOs
2020 showed continued growth in the number of
angel-funded female-led companies, with an increase
of 10%. As shown in Figure 20, female CEOs now lead
29% of all angel funded companies.
FIGURE 20. Femaleled Companies Are
Gathering More of
the Investment Pie
Women-led companies also made significant progress
in closing the overall funding gap in 2020, raising
an average of $224K vs. an average of $240K for
male CEOs, as shown in Figure 21. In 2019, womenled companies raised only 75% as much capital as
male-led companies. In 2020, female CEOs raised 93
cents for every dollar raised by a male CEO. Funding
differences by gender follow similar trends whether it
is an initial or follow-on round.
There are no significant differences in the top sectors where CEOs build their
companies, as shown in Figure 22. The top three sectors of medical/health care,
health technology, and software as a service align.
The data shows increasing gender diversity over the years, reflecting the active
focus this area has received and the development of specific programs over the
past few years. Several women-focused angel funds have been created over
the last several years, including Golden Seeds, Next Wave, and Portfolia. These
initiatives are showing very positive results, outpacing gender diversity results
seen with later stage venture capitalist investments.
32 | Portfolio Companies
Angel Funders Report 2021 | 33