Angel Investing Reported to be Up in 2007
The Biotech Weblog, which reported on a recent study conducted by the Center for Venture Research at the University of New Hampshire, wrote that:
[A]ngel investing picked up in 2006, and is likely to continue to do so in 2007. And biotech is one the top three bets receiving funds from angel investors.
According to Red Herring, the trend since the downturn has been that angel investing has increased five to ten percent annually. Moreover, Red Herring reported:
Angels continue to be the largest source of seed and startup capital, with 46 percent of 2006 angel investments in the seed and startup stage. This preference for seed and startup investing is followed closely by post-seed and startup investments—about 40 percent of total angel dollars. Healthcare services, and medical devices and equipment continued to account for the largest share of angel investments, with 21 percent of total angel investments in 2006, followed by software at 18 percent and biotech at 18 percent. The remaining investments were about equally weighted across high-tech sectors.
These reports are in sync with the trends we are seeing in the Bay Area towards investing in life sciences and health care. Certainly, investment is being made in technology, but there continues to be a lot of talk about what is going to be the next big thing. In contrast, with respect to the life sciences, the prevailing perspective is that there are multiple next big things on the horizon. My expectation is that the gap will continue to grow over time.
