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Angel deals see pre-money valuations fall in 2016

Pre-money valuations in angel deals fell last year as angels sought safer investments, according to the Halo Report.

The year saw angels do smaller first-round deals and reserve capital for follow-on rounds, with follow-on deals in portfolio companies exceeding first-time investments, the report said.

The median angel investment was $127,000, while the median round size was $950,000. For the year, the median pre-money valuation was $3.65 million, down from $4.6 million in 2015.

The report is put together by the Angel Resource Institute, the Angel Capital Association and PitchBook, and surveys angel groups.

The report looked at gender diversification and found that male entrepreneurs represent the majority of funded deals at 83 percent, with female founding entrepreneurs representing 17 percent. In California, where 30 percent of the angel deals are found nationwide, women-led startups represented 16 percent of the deals.

Action Item: The Halo Report is available online at http://bit.ly/2qjtDhm

Photo of young businessman in angel wings courtesy of RomarioIen/iStock/Getty Images