Meet the Funders 2024 National & Local Angel Group Investing Insights 2024 0723 1600PDT.pptx

Angel Investor Insights from 2023 & 2024

1. July 23, 2024 Elaine Werffeli [email protected] Seattle Angel Conference 25 National, Regional & Local Insights on Angel Group Investing from 2023 & 2024

2. Sharing Investor Insights for 2023

3. Summary of Market Conditions First quarter of 2024 did not start on a high note for the US Venture Capital Community Q2 Market Headwinds remain & pressure on market have only increased Inflation stickiness has caused the Fed to stay with its rate stance of higher for longer Dealmaking slowdown has been caused by both the limited exit opportunities and investors preserving capital Companies that raised 2-3 years ago and pushed out financing through cost cutting measures are returning to the market looking for subsequent financing In Q2 the pace of Dealmaking activity remained slow with deals taking longer to close and thorough DD has a higher bar Investment Climate is Investor Friendly : Abundance of demand and opportunity Focus with existing portfolios Investors reduction in activity – VCs have become highly selective with deals Investors seem to be circling their wagons and making sure their most promising companies are positioned for success before they make new bets Source: PitchBook Q1 & Q2 2024 Venture Monitor & Platform

4. The US VC-Backed Company count now reaches 56,000 companies This high number highlights the competition for capital Investors now have more choices Benchmarks for deals have increased Stronger companies are able to compel investment while struggling companies will not Headwinds make it necessary for companies to move significantly toward profitability while maintaining growth Source: PitchBook Q2 2024 Venture Monitor & Platform

5. Capital Invested in Pre-Seed and Seed continued to drop while Deal Count was up slightly in Q1 2024 Source: PitchBook Q1 2024 Venture Monitor & Platform Deal Value slumps to a 14 quarter low in Q1 2024 Deal Count picked up slightly from Q4 2023 but is at levels seen in 2019 Several factors: Shift in investor priorities Rounds taking longer to close More thorough DD Higher Benchmarks Startups have: Kept opened latest round Taking bridge financing Many Investors have advised: Reduce burn Extend runway Investors in market downturn tend to focus on helping existing companies and reserving capital for follow-on investments

6. The trend over the last 5 years shows Pre-Seed/Seed deals have been getting larger

7. But the Median Deal Size for VC backed Pre-Seed and Seed remains stable

8. with Median Pre-Seed and Seed Pre-Money Valuations seeing modest increases in 2024 so far

9. Sharing Investor Insights for 2023

10. Companies with Diverse Executive teams are more likely to outperform their peers Source: McKinsey & Company Diversity wins 2020 – How Inclusion Matters

11. There is a positive cycle between Angels and Entrepreneurs that creates long term growth Angels Entrepreneurs 55% of Angel Investors were previously a founder or CEO of their own startup Increasing number of successful Entrepreneurs in the short run can help the number of Angels in the long run Source: The American Angel: Report from ACA and Wharton Entrepreneurship

12. Women Angel Investors now represent 47% of all Angels in the US 29% 20% 26 % 25% 26% 19% 22% 12% 13% 11 % 17 % 12 % 14 % 9 % 5 % 30% 30% 40% Source: Center for Venture Research 47% 34%

13. Female Angel Investors and Women Owned Businesses seeking funding growth is on similar trajectories

14. Female Angel Investors and Women Owned Businesses seeking funding growth is on similar trajectories

15. Sharing Investor Insights for 2023

16. There is Strong Female Participation in the majority of Seattle Angel Groups in 2023 Source: Self Reported Angel Groups

17. 18 Startup Funders in Seattle Area have shared data with us Funder Type Stage Focus Avg Investment Size Year Formed APIS Angel Event Fund Preseed & Seed Under $300K 2021 Trans Atlantic Angel Conference (TAAC) Angel Event Fund Preseed & Seed Under $300K 2021 FlyWheel Conference Angel Event Fund Preseed & Seed Under $300K 2017 Seattle Angel Conference Angel Event Fund Preseed & Seed Under $300K 2012 SeaChange Angel Active Fund Preseed, Seed & Series A Under $2M 2015 SWAN Angel Network Preseed & Seed Under $300K 2015 Virtual Angels Network Angel Network Preseed & Seed Under $300K 2021 Puget Sound Venture Club (PSVC) Angel Network Preseed & Seed Under $300K 1985 E8 Angels Angel Network Seed & Series A Under $300K 2006 Alliance of Angels (AOA) Angel Network Preseed, Seed & Series A Under $2M 1997 Keiretsu Forum NW Angel Network Seed & Series A – Post revenue Under $2M 2005 First Row Partners Micro VC Preseed & Seed Under $300K 2019 Startup Haven Micro VC Preseed & Seed Under $300K 2005 Untapped Capital Micro VC Preseed & Seed Under $300K 2020 Graham & Walker (G&W) Venture Builder Preseed & Seed Under $300K 2017 Allen Institute Venture Builder Preseed, Seed & Series A Under $2M 2016 Pioneer Square Labs Venture Builder Preseed, Seed & Series A Under $2M 2015 Madrona – Core Fund VC Preseed, Seed, Series A Under $10M 1995 Madrona – Acceleration Fund VC Series B & Series C Under $10M 1995

18. Startup Funders here Tonight Funder Type Stage Focus Avg Investment Size Year Formed Seattle Angel Conference Angel Event Fund Preseed & Seed Under $300K 2012 VentureUs Angel Active Fund Preseed & Seed Under $300K 2024 SWAN Angel Network Preseed & Seed Under $300K 2015 Virtual Angels Network Angel Network Preseed & Seed Under $300K 2021 E8 Angels Angel Network Seed & Series A Under $300K 2006 Alliance of Angels (AOA) Angel Network Preseed, Seed & Series A Under $2M 1997 Keiretsu Forum NW Angel Network Seed & Series A – Post revenue Under $2M 2005 Ascend Ventures Micro VC Preseed Under $750K

19. Thank You and hope you got a few new insights to take away with you today!