ATA closed the 2008 year with 51 active investors. To get a sense of the growth of the group, in 2002 ATA had 28 investors. ATA also has over 100 past investors in the Atlanta area who we still rely on for resources and deal flow.
In 2008, ATA members invested in 5 new companies:
- 2080 Media/PlayOn (ATA had a number of members committed to this prior to Noro/Imlay, etc funding)
And 10 follow-on rounds of financing in current portfolio companies:
And had positive exits in two companies:
- SpiDynamics (sold to HP)
- SilverPop (3x buyout of common warrants-investors still hold preferred shares)
- Of the 2008 “new” deals, ATA members led 3 investments and co-invested in the other 2 companies with other early stage investment groups.
- Of the “old” deals, ATA members were the founders of 4 of the companies funded.
Other Activities:
- ATA has generated legal document “templates” for a Series A round of financing, a convertible debt note round of financing and a LLC that can establish an investment vehicle for ATA members when investing in a company.
- We had a special “Power of Angel Investments” seminar in September as an educational tool for members.
- We convinced the Angel Capital Association BOD that Atlanta was the city to hold the Angel Capital Association Annual Summit on April 15-17, 2009 at the Intercontinental Hotel in Buckhead.
A busy and productive year.
ATA had 22 screening meetings and reviewed, both formally and informally, over 100 companies in 2008. ATA formally met 9 times as a group in 2008, heard from 14 new companies at ATA monthly meetings in 2008 and funded 5 of those new companies.
Average meeting participation each month is approximately 30 members and guests.
The investment amount for ATA members for each new deal is between $100,000 and $500,000 and the investment amount for each follow-on round for ATA members (not the VC funds) is between $100,000 and $250,000.
ATA has invested approximately $30,000,000 into a total of 43 companies since 1999. Those 43 companies have subsequently received funding of over $300,000,000 in institutional financing from over 20 venture capital funds in 21 states.
Whew.
2 responses so far ↓
James Lang // January 14, 2009 at 2:09 pm |
What’s the ROI on the $30,000,000 invested?
Knox // January 14, 2009 at 2:29 pm |
Hi James–
Appreciate the question.
Our angel group is not a “fund” in the traditional sense with limited partners (investors). So, we do not track ROI such as a VC fund might. VC funds are required to report the ROI to their LP’s. Since angels invest their own capital, they generally track their own ROI–and are not required to report that ROI to outside indivuals. However, there is a paper out that I believe gives a 27% annualized ROI for the angel groups and individals that it studied–which tends to fall in line with what we see from mature, organized angel groups.
Of course, there are other ways to look at the success that the $30,000,000 invested generated.
-1000’s of jobs created in GA
-Tax base those jobs created
-$300,000,000 attracted to GA companies by outside investors
-Entrepreneurial interest in GA generated by early stage funding
It’s all a matter of how you look at it.