Medical device, equipment and healthcare services market segments made up the largest share of angel investments in the first half of 2009, at 28 percent, according to a study released by the Center for Venture Research at the University of New Hampshire.

The overall angel investor market took a 27 percent plunge in investment dollars, the report said, coming in at $9.1 billion.

Angel investments in other categories include: software, 14 percent; electronics/hardware, 14 percent; industrial/energy, 13%; and retail, 8 percent. However, the number of entrepreneurial ventures that received angel funding actually increased 6 percent from a year earlier.

Angels have decreased their appetite for startup-firm investing, with 27 percent of investments in the seed and startup stage, a decrease of 19 percent from the first half of 2008.

“The change in investment behavior is likely an indication of both a need to increase investments in existing portfolio companies and a change in angel’s risk tolerance,“ the report said.

Additionally expansion-stage investing (14 percent) remained unchanged, and first-time
investments represent 58 percent of activity, a slight decline from the last 12 months.

To see the complete report, visit http://wsbe.unh.edu/files/Q1Q2_2009_Analysis_Report.pdf.

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