Angel Group Investing Data Insights for National, Pacific Northwest and Seattle

1. May 15, 2019
Elaine Werffeli
elaine@elaingelinvest.com
Presented at Seattle Angel Group XV Finals Event
Regional & Local
Insights on
Angel Group Investing

2. Sharing Angel Investor Group Insights
Northwest
Seattle
SAC

3. How does the Pacific Northwest stack up?

4. Where? 7% of all Angel Group Deals are backed from
Northwest Groups
Source: 2017 Halo Report with 3,388 deals
21%
13%
10% 9% 9% 9% 9% 9%
7%
4%
0%
5%
10%
15%
20%
25%

5. What? Angel Groups in the Northwest funded more
Consumer Products & Services than average and less
Software than average with both over 20%
29%
22%
17% 16%
14%
3%
21%
27%
19%
13%
15%
4%
0%
5%
10%
15%
20%
25%
30%
35%
Consumer
Products and
Services
Software Other Business
Products &
Services
Healthcare Internet &
Mobile
Northwest '17 US '17
Source: 2017 Halo Report with 3,388 deals

6. More What? Category funding can change significantly YOY
29%
22%
17% 16% 14%
3%
12%
37%
16%
9%
13% 13%
0%
10%
20%
30%
40%
Consumer
Products and
Services
Software Other Business
Products &
Services
Healthcare Internet &
Mobile
Northwest '17 US '17 Northwest '16 US'16
Source: 2017 Halo Report with 3,388 deals & 2016 Halo Report with 2,751 deals

7. From Where? Nearly 2/3rds of all deals funded by
Northwest Angel Groups are homegrown while for the first
time since reporting that any region is below 50%
77%
69% 68% 64% 62% 62% 60% 56% 51%
39%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
% of Angel Group funded Deals within own region
Source: 2017 Halo Report with 3,388 deals

8. How Big? The Angel Group Check Size in the Northwest of
$225K is above the $200K National Average
$283
$230
$209 $200 $195
$173
$193
$150 $150
$-
$50
$100
$150
$200
$250
$300
Investment per Group (K)
$225K
Source: 2017 Halo Report with 3,388 deals

9. How Much? Pre-Money Valuation in Northwest is in the
middle of the pack at $3.6M
$4.9
$4.1 $4.0 $4.0 $3.9
$3.4
$3.0
$2.5 $2.5
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
Pre-Money Valuation (M)
$3.6 M
Source: 2017 Halo Report with 3,388 deals

10. How? Deal Structure in the Northwest had the highest % of
Convertible Notes
55% 55% 60% 60% 63% 64% 65% 65% 67% 68%
45%
23%
39% 38% 34% 34% 34% 31% 32% 32%
0%
23%
1% 2% 3% 2% 1% 4% 1% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Chart Title
Preferred Convertible Note Safe, DEBT, Other
Source: 2017 Halo Report with 3,388 deals

11. Who? In 2016 the Northwest was tied with the Southwest
for the region that funded the largest percentage of
Women forward startups.
Source: 2016 Halo Report with 2,751 deals
21% 21% 20% 19% 17% 16% 16% 16% 15% 14% 17%
79% 79% 80% 81% 83% 84% 84% 84% 85% 86% 83%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Women Only & Women + Men Men Only

12. More Who? And in 2017 the Northwest Leads the way for
funding Women Only and Women & Men run startups!
Source: 2017 Halo Report with 3,388 deals
19% 16% 16% 15% 14% 14% 12% 11% 10% 4% 13%
19%
14% 9% 11% 16% 10% 16% 11% 16%
9%
13%
63% 70% 75% 74% 70% 76% 72% 78% 74%
87%
74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Women Only Women + Men Men Only

13. Sharing Angel Investor Group Insights
Northwest
Seattle
SAC

14. For 2018 the Majority of Seattle Angel Groups are
at or above the National Female Participation
average of 20%
32%
25% 24% 22% 20% 20%
18%
11%
0%
5%
10%
15%
20%
25%
30%
35%
E8 SAC AOA Keiretsu
Forum NW
Grubstakes PSVC SeaChange Swan
% Female in Seattle Angel Groups

15. Timeline of Seattle Angel Group
Ecosystem

16. 2010

17. 2011

18. 2012

19. 2013

20. 2014

21. 2015

22. 2016

23. 2017

24. 2018

25. Sharing Angel Investor Group Insights
Northwest
Seattle
SAC

26. SAC by the Numbers
498
companies
26
funded
Over
$2.3M
invested

27. So come Join us for SAC XVI on the East
Side! Find one of us today and start the
conversation!