Serving the public relations needs of America’s startup companies is fulfilling work. So, I was especially interesting in attending today’s UVEF event for entrepreneurs.
A large crowd filled the Novell facility for today’s UVEF luncheon. They heard from Brock Blake, CEO at Funding Universe who addressed his company’s recent survey of 60 Utah angel investors. Utah Angels was the largest group in the sample, but several groups were represented. Here are some key findings.
While recent months have seen about a 50% drop in angel funding activity, Brock is convinced things are “picking back up” in Q2 of this year. The average Utah angel takes a 14% ownership position with total ownership for all angels per funding round is 34%. Brock counsels entrepreneurs to accept less than 45% angel ownership when seeking funding. He says angel investors do not usually seek to take controlling interest in a company. They want influence, but want others to manage the business day to day.
Angel investment most commonly takes the form of preferred stock (65%), but can be common stock (16%) or other intruments such as stock warrants. Angels take a board member postion 47% of the time or take an advisory board postion 11% of the time.
In Utah, the most active industry sectors using angel investment are Internet/Web (including SaaS) – 55%; Live Sciences – 18%; and Consumer Products – 11%.
85% of angel funding rounds are less than $1 million or less.
Do these numbers match your experience?
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