Angel Dollars, Not Deals Down in 2008

5/6/09: SBIR Introduction 3:00 - 4:00pm Presented by John Ujvari, SBTDC         5/13/09: It's in the Fine Print - Post Award Requirements Webinar 12:00 - 12:30pm Presented by Susan Martin of Hughes, Pittman and Gupton         6/3/09: SBIR Phase 1 Proposal Preparation RTP, NC 9:00am- -4:30pm Presented by Jim Greenwood, Greenwood Consulting Group         Click for many more events and details...

Courtesy of SSTI - www.SSTI.org

Though angel investments dropped considerably in 2008, the total number of deals held steady, according to a year-end analysis released by the University of New Hampshire's Center for Venture Research (CVR). Total investments fell 26.2 percent from 2007 to $19.2 billion, while deals fell only 2.9 percent. Deal size, however, declined by 24 percent. CVR concludes that although the current economic climate has not reduced angel activity significantly, it has caused investors to scale back the size of their investments.

Angel investors continue to be the primary source of seed and startup capital for entrepreneurs. In 2008, 45 percent of angel deals invested in companies at the seed and startup phase, up from 39 percent in 2007. A majority of angel capital recipients, 63 percent, are in their first sequence of fundraising, a number that has held steady for several years. Angel investors are becoming less interested in expansion-stage deals, which received only 14 percent of total angel dollars.

Healthcare/Medical Devices and Equipment took the lead as the most popular sector for angel investment, passing Software in 2008. Healthcare companies received 16 percent of all investment. Despite becoming the top sector, healthcare's total share of investment actually declined by three points from 2007. Software saw its share of total investment fall even more, from 27 percent of investment to 13 percent. The Biotech and Industrial/Energy sectors held steady while both Retail and Media increased their share.

In 2008, only ten percent of companies that were reviewed by angel investors actually received angel dollars. This continues the decline in acceptance rates that has occurred since the industry's peak acceptance in 2005, when 23 percent of companies were approved. CVR releases statistics on application and acceptance rates for women and minority entrepreneurs as well, and found that although their acceptance rates were in line with the total population of entrepreneurs, they are less likely to seek angel funding. Women-owned ventures accounted for 15.7 percent of firms seeking angel capital and minority-owned firms accounted for only 3.7 percent.

Click here to read the full 2008 Angel Market Analysis. If you would like to receive a free subscription to the SSTI Weekly Digest, click here.

SBIR Proposal Writing Basics: Benefiting from the Economic Stimulus Bill & Getting More F&A on Your NIH Phase 2

The Grant Proposal Budget: Seven Things to Remember

By Lea Strickland, Focus Resources

The grant proposal budget is an often-overlooked opportunity to improve the proposal's chances of winning. The budget is a communication tool to the reviewers, just like any other element of the proposal. What the budget does or doesn't do is let the reviewers know what you do or don't understand about your research project in terms of cost and resources, how it fits into the total scope of your business financially, and what you understand about the particular rules and requirements of the grant programs and agency guidelines and rules. The proposal budget can become a make or break for your proposal and business if you don't understand its role and implications-both during the review process and after an award has been received. Learn the 7 things you should remember when preparing the budget...

Federal Laboratory Consortium Annual Meeting & Tech Fair

On May 7, 2009, as part of their annual meeting, the Federal Laboratory Consortium will host an industry day event in Charlotte, NC. This event will be free of charge to the public and will include a variety of activities and sessions focused on interest by the private sector. This is an excellent opportunity for companies and research organizations in the Carolinas to learn how to access technologies and resources available in the federal laboratory system.

The sessions will provide guidance on how to leverage resources in the federal lab system. Booths and posters will display cutting edge discoveries from the labs that represent new product opportunities. The private sector will have the opportunity to meet with lab representatives and learn more about their technologies, capabilities, and research opportunities.

Another highlight of the day will be a Speed Networking session. This session will feature one-on-one meetings with members from the federal laboratory system (e.g., Department of Defense, the National Institutes of Health, NASA, the Department of Energy, and others).

Examples of activities that will be included in Industry Day include the following:

• FLC Tech Fair
• Speed Networking session
• Industry & Federal Labs - Your Open Innovation Partner
• Industry Perspectives I: The Agricultural Research Service and Circle One Global Partnership
• An energy panel that will discuss topics such as confronting our dependence on foreign oil and building a clean energy future that benefits all Americans
• Industry Perspectives II: Global Business Perspectives on Working with Federal Laboratories

Additional details about the conference, agenda, hotel, and registration can be found at the following link to the Federal Laboratory Consortium website.