The University of New Hampshire’s Center For Venture Research just released their complete 2014 stats about the angel market. The research found that although Angel funding was booming in 2013, the total amount of angel investment money invested actually went down, however, at the same time, the number of companies funded through angel investment actually went up.
The New Hampshire Business Review reports that in 2014 $24.1 billion dollars was invested in “angel investments” that was down 2.8% from 2013. The average deal size dropped 6.4% to $328,500 down from $337, 850 in 2013. Although those numbers saw a decrease, the actual number of angel investors saw a significant increase of 5.9%.
“It was kind of a mixed bag,” says Jeffrey Sohl, director of the UNH Center for Venture Research, about 2014. “The dollars [down per deal] were really more of a calibration of valuations, which I think was needed in the market. I think things were getting out of hand, not necessarily in New Hampshire, but in other parts of the country.”
When you couple all of this data with a drop in seed stage investment activity it appears that “investors” are in the driver’s seat, which many say makes for a healthier startup environment.
Seed stage funding has been bounding around since the 2008 economic crash days. In 2012 it was down, in 2013 it was up, in 2014 seed funding was down again, as it is this year to date so far. Many attribute that to the increase in expansion rounds of funding, although startups are worried that means that earlier stage companies are going to have to bootstrap longer, a notion that investors like Mark Cuban think is good.