Now for the question that's probably on the mind of every young founder: Where can you get seed funding for your great startup idea?

Well, there’s friends and family. There are credit cards and home equity loans. And, when you’re ready for it, there’s angel funding.

According to a new report from the Angel Resource Institute, Silicon Valley Bank, and CB Insights, the most active angel investors in 2013 were:

  1. Golden Seeds
    Notable, because Golden Seeds was founded specifically to fund women-run companies. It ranked fifth last year.
  2. Tech Coast Angels
    Another sign of Los Angeles's increasingly impressive startup scene. TCA ranked second last year, too.
  3. Houston Angel Network
    This is Houston Angel’s first appearance on CB Insights's “most active” list.
  4. Central Texas Angel Network
    It was fourth last year as well.
  5. Sand Hill Angels
    One of the oldest and best-regarded angel networks. It moved up by one slot from last year.
  6. Launchpad Venture Group
    Launchpad is based in Boston. It came in third last year.
  7. New York Angels
    It was the most active angel group in 2012.
  8. Desert Angels
    Desert Angels, of Tucson, is also new to the list.
  9. Investors’ Circle
    Investors' Circle is the only national group among the top 10. It placed seventh last year.
  10. Alliance of Angels
    Based in Seattle, Alliance of Angels came in eighth last year.

Other highlights from the report:

The average size of an angel round held steady in 2013, from 2011, at about $600,000. The median valuation for a company at its angel round was $2.5 million.

The most active, and trending, sectors over the past three years are about what you would expect:

  • Internet startups are winning an increasing share of angel attention, making up 39 percent of deals in 2013 compared with 33 percent in 2011.
  • Mobile and telecom jumped to 16 percent of all deals, from just under 10 percent.
  • Together, mobile, health care, and Internet startups accounted for nearly 80 percent of angel dollars.

Hardware companies, which have been raising impressive sums from venture capitalists, don’t seem to have the same popularity among angels. Only 2.7 percent of angel deals were for hardware companies in 2013, compared with 5.3 percent in 2011.

Published on: Apr 3, 2014