October 18-20 | Tucson, AZ

The Research Institution GAP Fund and Accelerator Program Summit

Angel Capital Q1/2 report shows more activity, move to expansion

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October 18-20, 2023 / Tucson, AZ
The annual summit for research institution gap fund and accelerator programs, including proof of concept programs, startup accelerators, and university venture funds

The Story

In our recent revamp of the early-stage capital continuum in our Mind the Gap roadmap report, we identified angels as vital capital partner in transitioning proof of concept technologies and pre-seed start-ups. As venture capital targets later rounds and expansion/growth stages of company development, individual angels and angel groups are a necessary bridge in the funding gap. Their activity level is a paramount indicator of the accessibility to that capital for these opportunities.

To measure that activity, the Center for Venture at the University of New Hampshire tracks these investments and has just released their 2012 Q1/Q2 angel activity report. Below are a few observations relative to gap funding, and the larger funding gap:

  • Indicating a continued recovery since the recessionary period around 2008
  • More $$ ($9.2B), active investors (131K individuals), and deals (27K) than the same period last year–roughly a 3% increase
  • $$/deal are hovering around $337K, which would be very similar to the low-end median range of business growth gap funds
  • Around 40% of investments into seed stage start-ups, still under the pre-2008 levels of ~55%
  • A 9% increase of remaining deals into the expansion stage from same period last year, up to 22% of total. This move to expansion could be a lot of things, including attractive valuations, a sophistication of angel groups, or an appetite for more established business. Either way, a move towards expansion shifts needed capital into the later stages.
  • Angels are first money in 49% of the deals
  • Angels fund about 18% of the deals they see
It is worth a review of the report and a comparison to your fund activity and opportunity needs. We will continue to track this opportunity and its affect on the capital gap, including the positioning of angel capital in the new capital continuum.


Jeffrey Sohl, “The Angel Investor Market in Q1Q2 2012:
A Market in Steady Recovery”, Center for Venture Research, October 10, 2012.

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