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Angel Investor Statistics – 15 Pieces Of Data

There is no doubt that angel investors are becoming an increasingly important part of the startup landscape.

But what do we really know about them? How much money do they invest, and in what types of businesses? What are their motivations for investing?

To answer some of these questions, we’re going to take a look at some interesting angel investor statistics. Let’s get started!

What is Angel Investing?

Angel investing is a type of private equity investing. An angel investor is an individual who provides capital for a business startup, usually in exchange for convertible debt or ownership equity.

angel investors

Angel investors are often wealthy individuals who have made their money in another industry and are looking to invest in a high-growth startup.

As an entrepreneur, it’s important to know who your target audience is for your product or service. The same is true when seeking funding from angel investors. While it’s not necessary to have an in-depth knowledge of every single investor, it is important to know some key statistics about the group as a whole.

So whether you’re seeking seed funding or looking to attract more big-name investors, understanding some basic angel investor statistics can be a valuable tool in your entrepreneurial journey.

Angel Investor Statistics – Highlights

  • Angel investment activity totals as much as $24 billion each year, contributing to the success of 64,000+ startups.
  • Angel investors with 12 angel investments over the period of five years or more have a 75% chance of a 2.6x return.
  • About 22% of all angel investors are women.
  • Investments in Black-led companies grew to 15% in 2020, a five-fold increase.
  • More than half of all angel investors, both new and experienced angels alike, have some experience as entrepreneurs and often lend some of that expertise to their startups.

Angel investment activity totals as much as $24 billion each year, contributing to the success of 64,000+ startups

(Source: Forbes)

While there is no guarantee that investing in a startup will be successful, it appears that this is a sizable market with significant potential. As such, it may be worth considering angel investing as part of a diversified portfolio.

angel investor statistics dollars

Angel investing can be risky, with only about 5-10% of investments being economically profitable

(Source: Forbes)

For those who don’t know, angel investing is when an individual invests their own money into a company, usually in the early stages. And while it definitely can be risky – with only about 5-10% of investments being economically profitable – it also has the potential to be very rewarding.

For one thing, angel investors often have unlimited access to the companies they invest in, which allows them to play a role in their development and growth.

Additionally, because they’re investing in early stage companies, they often have the opportunity to make a much larger return on their investment than they would if they were investing in more established businesses.

So while there’s definitely risk involved in angel investing, there’s also the potential for great reward.

Contrary to popular belief, most angel investors do not live in Silicon Valley, Boston, New York, or other traditional venture capital regions

(Source: American Angel Report)

The majority of angel investors do not actually live in Silicon Valley, Boston, or New York. The study found that while these traditional venture capital hubs are home to some of the most active angel investors, they are not necessarily representative of the broader population.

This discrepancy is likely due to the fact that many angel investors began their careers as entrepreneurs in portfolio companies based in these states.

As a result, they have a strong network of connections in these regions and are more likely to continue investing there. This trend is likely to continue in the years ahead, making it easier for entrepreneurs to access capital from a variety of sources.

Angel investors with 12 angel investments over the period of five years or more have a 75% chance of a 2.6x return

(Source: Forbes)

This is largely due to the fact that angel investors tend to be more experienced than those who begin investing at later stages. They often have a better understanding of the risks involved and are better equipped to handle them.

angel investor statistics close deal

Additionally, angel investors are typically more patient than venture capitalists, giving them a greater chance of seeing their investment through to fruition.

For these reasons, angel investors can be an important source of capital for early-stage businesses.

More than half of all angel investors, both new and experienced angels alike, have some experience as entrepreneurs and often lend some of that expertise to their startups

(Source: American Angel Report)

A recent study found that more than half of all angel investors have some experience as entrepreneurs.

This is not surprising, as many angels began investing after having success as entrepreneurs themselves.

Early stage investing is often seen as a natural extension of the entrepreneurial ecosystem, as it allows experienced entrepreneurs to help new startups get off the ground. In addition to providing financial support, angels can also offer advice and mentorship to their portfolio companies.

As a result, they play an essential role in fostering innovation and promoting economic growth.

About 22% of all angel investors are women

(Source: American Angel Report)

It’s been said that women make up about 22% of all angel investors. But what does this number actually mean?

For starters, it tells us that women are more likely to invest in entrepreneurs at the early stages of their businesses. This is significant because women-led startups often have a harder time securing funding from traditional sources like venture capitalists.

So by providing this much-needed support, women angel investors can play a critical role in leveling the playing field for women entrepreneurs. Moreover, this quote suggests that there are more women than ever before who are willing to invest in women-led businesses.

This is encouraging news for all women entrepreneurs who are looking to raise capital.

So if you’re thinking about starting a business, don’t be discouraged by the lack of women in the VC world. There are plenty of women angel investors out there who are ready to support your vision.

There are about 250,000 active angel investors in the United States

(Source: Angel Investment Network)

Angel investors are often part of angel networks, which are groups of individuals who pool their money to invest in startups.

In recent years, there has been a trend towards more women angel investors as well as more angel investment in companies with female founders.

This is likely due to a combination of factors, including an increase in the number of women starting businesses and a shift in attitudes towards investing in women-led businesses.

Angel Investors Meeting

51% of female angel investors state that gender of business founders is important when making investment decisions

(Source: American Angel Report)

According to a survey of women angel investors, 51% of respondents said that the gender of business founders is important when making investment decisions.

This figure highlights the importance of women angels in supporting women entrepreneurs. While women make up a minority of angel investors, they are increasingly playing a vital role in funding early stage companies.

In addition to providing financial support, women angels also offer valuable mentorship and networks. By investing in women-led businesses, women angels are helping to close the gender gap in the startup world and create more opportunities for women entrepreneurs.

Investments in Black-led companies grew to 15% in 2020, a five-fold increase

(Source: Angel Capital Association)

This increase in interest has led to a surge in the number of Black-led companies receiving angel investment. In addition to providing essential capital for these companies, angel investors also offer valuable mentorship and guidance. As a result of this increased support, Black-led startups are poised for continued success in the coming years.

The average amount of capital raised by angel investors is around $450k

(Source: Angel Investment Network)

Even within the same region, there can be a lot of variation in the amount of capital raised by angel investors. This quote provides some insight into the average amount of capital that is raised by angel investors, but it is important to keep in mind that there is a lot of variation in this number.

angel investor statistics capital raise

Angel investors report that about 11% of their total portfolio yielded a positive return

(Source: American Angel Report)

Of all investments, startup companies are some of the most risky. They have unproven management teams, products, and business models. But for some investors, the potential payoff is worth the risk. These investors, known as angel investors, are willing to put their money into early-stage companies in exchange for a chance at big returns.

A large percentage of angel investors is found in the Great Lakes region (about 16.2%)

(Source: Forbes)

The Great Lakes region is home to a large number of angel investors. This is due to the fact that the region has a large number of high-net-worth individuals. In addition, the region has a strong culture of entrepreneurship.

As a result, many angel investors are attracted to the region in order to invest in early-stage businesses. The Great Lakes region is also home to a number of venture capital firms. This is due to the fact that the region has a large number of high-growth businesses.

Angel Capital Association groups invested $650M in 2020 alone

(Source: Angel Capital Association)

The Angel Capital Association is a national organization that represents angel investors. In 2020, angel investors in the United States invested a total of $650 million in startup companies. This figure represents a significant increase.

angel investor statistics angel capital association groups

Female CEOs raised 93 cents for every dollar raised by male CEOs

(Source: Angel Capital Association)

Though women have made great strides in recent years, they still face significant obstacles when it comes to achieving leadership positions.

This quote suggests that even when women do achieve these positions, they are not given the same level of funding and support as their male counterparts. This lack of support can make it difficult for women to successfully lead businesses, and it ultimately reinforces the gender disparities that exist within the business world.

In order to create a truly equal playing field, it is important that female CEOs receive the same level of funding and support as their male counterparts.

The average angel investor will invest in 19 companies on average, an increase from 14 companies last year

(Source: Angel Capital Association)

The reasons for the increases are unclear, but the report speculates that it may be due to the current state of the economy. With interest rates remaining low and stock prices high, angels may be feeling more confident about investing in early-stage companies.

Final Thoughts: Angel Investor Statistics

So, what does this all mean for you as an entrepreneur? Angel investors are a critical piece of the puzzle when it comes to funding your startup.

And while getting an angel investment is no easy task, these statistics show that it’s definitely worth the effort.

Consider reaching out to local angels first and then widening your search once you have a strong foundation in place. With a well-executed pitch and some luck, you could be on your way to securing the funds you need to turn your idea into reality.

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Kevin Martin

Kevin is an ambitious entrepreneur that is obsessed with all things related to finance. From a young age, Kevin has always been involved with side hustles ranging from online selling to freelance work. Over the years, Kevin graduated from side hustles and started launching multiple online and offline businesses. Kevin is a serial entrepreneur who loves starting new businesses and exploring all things related to business and finance. He is constantly looking for new ways to save money, invest money, and create income streams.