Several new reports have recently been released that show that not only are angel investments on a good steady road upward, but healthcare is a favorite with investors.
Angel investors, those who invest their own funds and expertise directly into startup companies, appear to be taking on an ever larger role in supporting entrepreneurship in the United States. Angels invest in startups and young companies, which have been credited by the Kauffman Foundation as the key source of net new jobs in the country. According to a new report by Silicon Valley Bank, the most active angel groups in 2011 were Tech Coast Angels, Band of Angels, Golden Seeds, Central Texas Angel Network, and Launchpad Venture Group.
According to Silicon Valley Bank’s “Halo Report,” 24.1% of angel investment deals in 2011 were in healthcare. Even more impressive, 37.4% of funding dollars were in healthcare. 60% of healthcare investments were in medical device and equipment companies.
According to another report, the 2011 “Angel Market Analysis” by the Center for Venture Research at the University of New Hampshire, health care services/medical devices and equipment took 19% of total angel investments, while biotech took 13%. This report showed that angels increased their investments in seed and startup companies from previous years, with 42% of 2011 angel investments going to young companies in the seed and startup stages.
Clearly, influential investors see healthcare as a market ripe for growth. By investing in young companies, these investors are looking to really encourage entrepreneurship. By targeting the healthcare market for disruption, rather than just games and mobile apps, angels also see a way to make a true difference in people’s lives.
Check out more articles on these studies:
Business Insider: Healthcare Is The Hottest Sector For Startup Funding
Seacoastonline: U.S. angel investor market on solid path of recovery