Angelsoft’s Upgrade and 2008 Statistics

Posted by Erdem OZKAN on 7 January, 2009

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This item was filled under [ Business Development, Directory, Events, Funding, Google, Innovation, Marketing, News, Strategy, Web 3.0 ]

As i mentioned in an old post before, Angelsoft is a New York based company which has become an online ecosystem where investors and entrepreneurs meet to build new companies. Due to its name, Angelsoft was about Angel Investors.After they released version 3.0 , their platform became easier but more powerful. With version 3.4 release, Angelsoft is welcoming VCs into the Angelsoft Network.They’ve launched new power features that can help the venture capitalists streamline the process easier. As it happened in all releases, the interfaces are ipmroved and lots of bugs fixed.

2008 Stats

Angelsoft is an alive and transparent platform and has lots of transactions, so the stats from Angelsoft are reliable enough to represent the industry. I think the most important stat is “invested submissions rate” . As you see, very small number of companies who apply get funded. This shows how hard being an entrepreneur is. Getting an investment doesn’t mean that you will be successful. The success rate of a startup is very low, too. Half of the startups fail within two years and then the others in the next three years. Average four year – survival rate of a startup is under 40% . There are 442 angel groups and VCs and 14,900 investors in the Angelsoft Ecosystem and Angelsoft processes over 2,100 funding applications a month. Since May 2008, 37,000 + deals made, about 2,000 events occured, 150,000 documents attached.

Doubling Investor Community Activity

One of the most important need of the entrepreneurs is promoting their plans to the investor community. Angelsoft listened to them and took steps to help them out which resulted in a doubling of the number of views that the Investors receive. The feedback form both investors and entrepreneurs have been positive as well which means a win-win situation. Investors now receive an email bi-weekly with the 5 closest and 5 highest rated deals.

Industry Valuations

As the graph at the above shows, the average amount of funds being sought differs between 25% – 35% of the pre-money valuation estimated by entrepreneurs for their companies. The graph also shows us that the valuation is decreasing but the rate of the funds sought is increasing. This means,

The prices are getting down in the early stage investment industry,
Entrepreneurs are aready to share more of their companies with the investors.

Conclusion

These new features are a major step forward in improving the funding process for entrepreneurs and investing process for investors. These days, you can see angel investors and VCs coinvesting on deals more often. Both the VCs and angels need each other and this relationship will be more important in the future. It’s a smart action to bring VCs on board and Angelsoft platfrom has become a better place for entrepreneurs and angel investors to be able to meet more people.

* All the data and the images used in this article are the property of Angelsoft.

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