Angel investors are putting more money behind startups according to the latest Halo Report, a survey of angel financing deals and activity compiled by The Angel Resource Institute and sponsored by Seattle-based Pitchbook.
The report found that median angel round sizes increased from $500,000 in Q2 to $725,000 per deal in Q3 — also up from $350,000 in Q3 of last year — while the mean round size spiked from $735,000 to $1.41 million.
The study noted that the median seed stage pre-money valuations reached an all-time high of $4 million, which is up 33 percent from this time last year.
“This report reinforces the trends that we have been reporting on for the past several quarters, particularly the rise in all round sizes and pre-money valuations,” ARI’s Vice Chairman of Research Rob Wiltbank said in a statement. “These trends have a significant impact on the way that angels and entrepreneurs plan for the future when raising capital.”
Regionally, California led the country with the most angel dollars invested, accounting for 19.7 percent. New England and the Great Lakes followed, with the Northwest at just 4.1 percent.
Seattle’s Alliance of Angels was among the top 10 most active angel groups in the country during the first quarter, joining Keiretsu Forum, New York Angels, Queen City Angels, Golden Seeds, Maine Angels, Central Texas Angel Network, Houston Angel Network, Launchpad Venture Group, Robin Hood Ventures, Sand Hill Angels, Tech Coast Angels and Wisconsin Investment Partners.
The report also found that most angels are pumping money into software and healthcare, with those sectors accounting for more than 50 percent of total invested capital.
See the full report here.