Introducing the ACA Angel Funders Report

ACA is launching a new strategic data initiative with the pilot Angel Funders Report to eventually provide angels with insights on the factors that affect the outcomes of startup investments.  This is an important project for the angel industry and ACA member groups, who are at the core of the data.  Click here to learn more about why you should participate.

Angel groups will learn from the data and analysis to help their member angels make better decisions and grow their access to quality deal flow. The pilot report covers 2017 data from 26 angel groups and includes new insights for one year of investments, including how many angels invest per deal, the experience level of the startup CEO and whether the angel group is represented on the company’s board.

In addition to the 2017 data for the pilot group of angel organizations, the report includes examples of insights found by three ACA member groups that analyzed their data.  This is the type of learning ACA hopes to include in future Angel Funders Reports:

  • CEO Experience Counts - One group found that companies led by a CEO who had previous experience in leading a startup was more than twice as likely to have a successful exit than a venture led by a first-time startup CEO – 32% of their portfolio with experienced CEOs had a positive exit compared to 13% of companies with first-time CEOs.
  • Successful Exit Secrets - Another organization, which has had three “home run” exits of more than 100X of their investments, found that 2% of its exits were responsible for 74% of their returns - a small percentage of exits generated three quarters of returns.  Further, each of these large returns came after the company boards chose not to take “early exit” options and instead pursued exits that took longer.  Had the earlier options been accepted, the group’s overall portfolio return would have dropped by half, from 4.8X to 2.4X.
  • Follow-ons Can Bring Higher Returns - Leaders of a third group found that participating in follow-on rounds is key to long-term success, finding that the Internal Rate of Return for later rounds often showed more returns and reduced risk.  Investing longer and later can increase the Internal Rate of Return.

Read the Angel Funders Report

Future of the Angel Funders Report

ACA is currently planning to publish two reports per year and then go to quarterly publication when the dataset is larger, but we need your help!  We are now opening up the Angel Funders Report for all ACA member organizations to participate by submitting their 2018 and earlier data so your group or platform can fully benefit from this new initiative, created to support ACA members – at your request.  Learn more about the Angel Funders Report here

Sign up today!