Alliance of Angels Invests $6.4 Million in 36 Companies in 2008
Near record year despite difficult market conditions
SEATTLE, WA – February 27, 2009 — The Alliance of Angels (AoA), the Pacific Northwest’s premier non-profit angel investor organization, announced today that its members invested a total of $6.4 million in Northwest-based companies in high-growth sectors in 2008, an increase of 64% over 2007 and the second-highest yearly total in AoA's 11-year history.
Nineteen of the 33 companies that presented to the AoA members for the first time last year received investment. In all, 36 companies received investment through AoA in 2008: in addition to the 19 new deals, members funded seven companies that returned to deliver a progress update after previously pitching to AoA, and made follow-on investments in another 10 companies that did not appear before the full membership in 2008 but had presented and received initial funding in prior years.
“Angels continue to support and invest in seed stage startups. The sophisticated AoA investors have been conserving capital with an eye toward follow-on rounds and, at the same time, the lower company valuations we have been seeing have encouraged angels to put more money to work in new opportunities,” observed Dan Rosen, Chairman of AoA and CEO of Dan Rosen & Associates. “We are seeing some great new companies. Our members invested in over 60% of the presenting companies in 2008.”
Technology companies accounted for nearly 80% of the deals that attracted first-time investment from AoA in 2008.
Of those, four were Web 2.0 companies, and there were three deals in each of the software as a service, software and services, and mobile categories. Gaming and nanotechnology comprised the final two technology-focused deals. The consumer products/retail category accounted for an additional four new deals. The deals were split almost evenly between pre-revenue startups and early stage companies that are post-product with revenue.
“Not only were our members backing new quality deals and continuing to build on existing investments, but we had five exits last year: CleverSet, The Coffee Equipment Company, Insitu, Shelfari and SnapIn,” concluded Rosen. “Overall, I would characterize 2008 as a very good year for companies and angels involved in AoA.”
Companies also secured over $9.6 million in additional funding facilitated by AoA, bringing the program’s total impact on early stage investment last year to $16 million.
Over the course of Alliance of Angels’ 11-year history, members have directly invested over $40 million in approximately 140 companies. In all, AoA has directed or facilitated an estimated $80 million in funding for Pacific Northwest-based companies since 1998.
- Kristin Osborne
- (206) 389-7320
About the Alliance of Angels
The Alliance of Angels is the Pacific Northwest’s premier non-profit angel investment organization, comprising more than 100 accredited individual investors and representatives of investment firms who invest in early-stage companies in technology and other high-growth sectors based in Washington state and the surrounding region. A program of the Technology Alliance, AoA represents the Northwest’s most experienced and best-networked private investors and supports the growth of young companies by facilitating more efficient access to capital and advancing entrepreneur and investor education. For more information, visit www.allianceofangels.com.