Charlottesville’s Tech and Innovation Startup Ecosystem Hub
Part 1: Investments by the numbers…we’re crushing it!
The Charlottesville Angel Network (CAN) and CAV Angels (CAV) – our two primary local angel
groups – have collectively invested nearly $28M since forming in 2015-2016, respectively.
Following national trends, our mighty angel groups increased investment levels during brutal pandemic-impacted years, proving that those who believed angels would slow down during those crucial times were incorrect. Take a look at CAN and CAV 2020 and 2021 investment numbers:
National Recognition for Charlottesville
In the recently released 2021 HALO Annual Report published by the Angel Resource Institute (ARI), the Charlottesville Angel Network (CAN) was named:
# 1 most active angel group in the SouthEast
Most Active Angels
#1 Charlottesville Angels
#2 Keiretsu Forum
#3 New Dominion
#4 Tamiami Angels & Jump Fund
And the # 9 most active angel group in the US
Top 10 Angel Groups Ranked by Number of Deals
#1 Keiretsu Forum
#2 Golden Seeds
#3 Sacramento Angels
#4 Desert Angels & Astia Angels (tied)
#6 Blue Tree Allied Angels
#7 Alliance of Angels
#8 Sea Change Angels
#9 Charlottesville Angels
#10 New York Angels
Southeast Region On the Rise
Also from the 2021 HALO report, noteworthy activity in the Southeast region of the US, in which Virginia is included:
“The SE region of the US continues to play a key role in the growth of the country’s ecosystem.”
“Clearly, the growth in company financing transactions was greatest in the SE.”
“The SE continued its aggressive growth by a full percentage point to account for almost 17% of all transactions in the US.”
“…over 70% of transactions in the SE region were new investments!”
“In 2020, the SE drew even more capital than California from out of region investors.”
“2021 found companies in the SE exceeding California as the most popular region to attract investors from other regions into their transactions in sheer number of deals.” (see graph below)
Industry-Specific Stats:
“The SE region continues to rival California. Only 2% points behind California’s share of both Business Products and Services companies and Consumer Products and Services, SE exceeds California’s share of Financial Services by over 4%.”
“More noteworthy, is that almost 23% of all financial services companies identified are in the SE, exceeding NY by 2%. New York is second in the sector at 20.45%.”
“The healthcare industry is most concentrated with California 20.2% of the companies in the region; the SE holds the second largest concentration of healthcare companies at 16%”
“Information Technology also remains concentrated in California with 21.5% and the SE holding the second largest concentration of IT companies at 16.3%.”
Valuation Stats
Companies raising seed capital in the Southeast are succeeding with higher valuations. According to HALO Reports:
2021: $6.0M Seed Stage Median Pre Money
2020: $6.0M Seed Stage Median Pre Money
2019: $5.0M Seed Stage Median Pre Money
The Angel Capital Association (ACA) also recently released its 2021 Angel Funders Report with an analysis of 2020 investment data. Here are some highlights:
- ACA member groups invested $650 million in 2020
- Angel groups invest about $4.7 million per year across multiple companies (up 15% from 2019)
- Angel portfolio companies leverage their angel investments to raise $4 billion total – a 6X multiple
- Individual angels invested in 19 companies on avg, up from 14 prior year
- The median exit multiple of invested capital remains strong at 1.8X
- Angels are narrowing the gap, investing in more diverse founders than ever
What’s Next for Charlottesville?
It’s said that an entrepreneurial hub is sustainable when it is sufficiently robust to support growing employment and absorb the inevitable failures of some early-stage companies. So, are we there yet?
I ask you, “What else should we celebrate? What is needed to ensure the future growth and success of our technology, innovation, startup ecosystem hub?” Do you foresee a major disruption in angel investments or the ecosystem due to a possible recession or other factors? Email me to let me know your thoughts. Your ideas for future articles in this series are encouraged and appreciated.
Keep innovating,
Tracey Greene (she / her / hers)
Executive Director, Charlottesville Business Innovation Council (CBIC)
Co-founder and Executive Director, Charlottesville Angel Network (CAN)
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