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Angel and Seed Funding 2008 – 2013 YTD - September 2013

by Gemma Morris

  • 26 Sep 2013
  • PE

Preqin’s Venture Deals Analyst shows that since 2008, there have been 4,640 angel and seed financings with an aggregate value of $3.5bn. These financings account for 15% of all venture capital deals and 1% of aggregate deal value during the time period.

Looking more closely at angel and seed deals each year, there has been an increase in the proportion of angel and seed deals in terms of both the number of deals and the aggregate deal value. From 2008 to 2013, there has been a strong increase in the proportion of deal flow, with the proportion of the number of angel and seed deals rising from 6.7% in 2008 to 22.6% in 2013 so far. However, a closer inspection of the year on year data reveals that the pace of these increases have not been constant; figures for the period between 2012 and 2013 so far in particular show a relatively smaller increase, rising only 0.9 percentage points in comparison to the 7.3 percentage points increase between 2011 and 2012. The proportion of aggregate deal value that angel and seed investments account for has also increased since 2008. Between 2008 and 2011, the proportion increased from 0.5% to 1.1% and from 2011 to 2013 so far the proportion has increased even more rapidly, from 1.1% to 2.5%.

Preqin's Venture Deals Analyst data shows that seed and angel financings largely involve companies within the internet industry, with 1,846 deals made in internet-based portfolio companies reaching an aggregate of $1.3bn, representing 40% and 37% of all angel and seed financings respectively. The largest of those angel and seed rounds for portfolio companies within the internet considered as their primary industry was the $21mn seed financing of Texas based e-commerce company RetailMeNot, formerly known as WhaleShark Media, in late 2009.

The second most common industry for seed and angel financings is software and related sectors. With 1,047 angel and seed deals since 2008 at an aggregate value of $820mn, deals within this industry contributed to 23% and 24% of the number and aggregate value of all angel and seed financings respectively. The largest of angel and seed deals within this industry, and in fact of all such financings since 2008, was Clinkle’s $25mn seed round in June this year from Accel Partners, Intel Capital, Intuit, Inc., Andreessen Horowitz and individual investors. Clinkle is a Californian payments solutions software developer launched in 2011. Outside of the internet industry, matching Clinkle’s seed round as the largest financing also at $25mn was Minerva Project’s seed round from Benchmark Capital in 2012. Minerva Project is an academic institution based in San Francisco, California.

Telecoms is the third most prominent industry; there were 689 angel and seed deals between 2008 and 2013 with an aggregate value of $488mn – making up 15% of the number and 14% of the aggregate value of all such deals since 2008. In 2011, Zeebox, a provider of mobile and web applications, raised a £5mn seed round, the largest of those recorded in the telecoms industry since 2008. 

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