Worthworm Wisdom

Insights for entrepreneurs & investors

Angel Investment in America Report 2013 (2)

Posted by admin on 2013-11-12 04:11:27

In Part 2 of this series, we’ll share results from the second part of our Angel Investment in America Report. In mid 2013, Worthworm commissioned research firm OnePoll to conduct a survey of U.S. angel investors in order to learn more about their past investments and their outlook on the future. Read on to see the results from the second part of this survey.

In Part I of this series, we shared results from the first part of our Angel Investment in America survey that Worthworm conducted in mid 2013. We commissioned research firm OnePoll to poll the views of angel investors across the country in order to learn more about their past startup business funding experience and their outlook on the future.

The responses revealed a number of telling signs about which key industries angel investors are keen to support and where they plan to invest in the coming months. In many ways, the report serves as a “roadmap” for entrepreneurs putting together a business plan for their next venture.

There are a lot of unknowns when it comes to creating your startup and getting business funding. What will the market bear? How will your product stack up versus competitors? Do you have the right leadership in place to drive your business forward? Often, “How much is my venture worth?” is one of the biggest questions of the bunch.

That’s exactly why we founded Worthworm. Our study found that most angel investors are making a single investment per quarter, meaning that competition is high for angel dollars, and opportunities are few. Not knowing the answer to how much your venture is worth – or worse, being completely off-base – can immediately shut down a potential negotiation with investors.

We wanted to make an intuitive, web-based tool that entrepreneurs could use to derive a realistic, defensible pre-money valuation.

We understand that angels are called angels for a reason: they invest in others, and those investments hopefully help to create products, services, and technologies that all can enjoy or access. Simply put, we want entrepreneurs to ably represent themselves and for angels to get a fair deal. We expect that those who use our valuation tool for business funding will increase startup growth even further, bring new opportunities to their communities, and continue to help rebuild the U.S. economy.

Take a look at some of the results from the second part of our survey below, including responses to all of the survey questions and commentary from Worthworm.

If you plan to increase the number of investments you make, please state why:

Worthworm 2013 Angel Investment in America Report Question 3

During the remainder of 2013, I predict the following industries will gain the most angel investment:

Worthworm 2013 Angel Investment in America Report Question 4

Mobile continues to gain significant angel investment, but I think the specific mobile sector to watch is:

Worthworm 2013 Angel Investment in America Report Question 5

The one industry I think angel investors failed to fully capitalize upon in 2012 was:

Worthworm 2013 Angel Investment in America Report Question 6

Curious about how much your venture could be worth? Or looking for a world-class teaching tool? Or are you trying to do due diligence on potential deals?  Then try a subscription to Worthworm, and let us help you.