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The average angel-backed company receives much less capital today than it did in the early 2000s, data from the University of New Hampshire’s Center for Venture Research (CVR) reveals. The CVR’s numbers — which come from surveys of individual angels and angel groups — show that the dollars that the average angel-backed company received dropped a whopping 42.3 percent between 2002 and 2014, when measured in inflation-adjusted terms.
As the chart below shows, two factors contributed to this decline. First, the amount that the average angel put into start-ups fell dramatically between 2006 and 2008, and has not recovered. Measured in inflation-adjusted terms, the amount of angel investment per active investor declined from $128,000 in 2006 to $74,611 in 2008 (in 2014 dollars). From 2008 to 2014, this amount has remained largely unchanged, increasing only to $76,121 in 2014 (in 2014 dollars).