Study: Medical Device Segment In Top Tier of Angel Investments

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.