2020 ACA Innovation Showcase | Page 5

Angels Are a Unique and Powerful Group to Develop Relationships With To the surprise of some, angel investors are the most important funders of high-growth startups. While some believe Venture Capital firms fund startups, the data says that angels provide 90% of the outside equity to startups. Angels invest about $25B to about 70,000 companies every year, more than 10 times the number of companies funded by VCs. Instead VCs mostly provide important expansion capital to early-stage companies. Why don’t people understand this difference? Most angels are private, so they are harder to find. The Angel Capital Association Summit brings together many of the top angel investors in North America and provides a way for sponsors to connect with angels with large portfolios of startup companies and excellent relationships with the innovation ecosystem (including great VCs). Meet important angels, who fund the kind of companies that create all of the net new jobs in the US over a 25 year period (new businesses). Entrepreneurs 7% have an MBA or graduate degree (compared to 12.9% of the American public) 55% are entrepreneurs or C-level executives at large corporations 51% worked in technology companies are Board members of for-profit companies Sponsors 10% Economic Dev 3% 73% 46% Other 1% Universities 5% Accelerators 3% Key Numbers 22% Who attends the ACA Summit? are women (and the percentage is growing – 30% of new angels) 11.4 Angel Investors 71% average number of companies in an angel’s portfolio $35k Angels Actively Support Entrepre nuers average individual investment $800k average round size per company 5 Source: The American Angel, by ACA, Wharton Entrepreneurship and Harvard Business School, 2017)