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How many companies do angel investors invest in and how much?

To date, unlike the venture capital industry, there has not been a bottoms up study that has aggregated all angel investments in the US to arrive at a number of angel investments per year or the amount invested by angels.

The most quoted number is based on extrapolated data and hence not via an aggregation of deals and so we’re unsure of its accuracy. It comes from The Center for Venture Research which estimates that U.S. angel investors invested $19 billion in 55,000 deals (about 35,000 small businesses) in 2008. Many of the investments were in start-up or very early-stage companies.

According to the Center for Venture Research, the 2009 angel investor market exhibited a modest decrease in investment dollars but little change in the number of investments, while CVR contends that significant changes occurred in the critical seed and start-up stages. Per CVR, total investments in 2009 were $17.6 billion, a decrease of 8.3 percent over 2008 when investments totaled $19.2 billion. However, a total of 57,225 entrepreneurial ventures received angel funding in 2009, a reserved 3.1 percent increase from 2008 when 55,480 entrepreneurial ventures received angel funding.

In 2009, angels exhibited an increased interest in post-seed/start-up investing with 62% of investments in the early and expansion stage, an increase from 2008. New first-sequence investments represented 47% of 2009 angel activity, a significant decline from the previous two years, according to the Center for Venture Research.