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Abstract:

$3.9 Million Invested in Record-High 44 Deals as Program Enters its 10th Year

Alliance of Angels Reaches New Heights with 2007 Investments

SEATTLE, WA | Posted on February 1st, 2008

The Alliance of Angels, the Pacific Northwest's premier non-profit angel investor organization, announced today that its membership invested a total of $3.9 million in 44 early stage companies during 2007, setting a new record for the number of deals completed in the program's 10-year history. Companies also secured $3.3 million in funding from additional sources facilitated by AoA, bringing the program's total impact on early stage investment last year to $7.2 million.

"This has been a fabulous year for the Alliance of Angels. It has earned a reputation as one of the most active angel groups in the nation, and our latest investment results once again demonstrate our strong commitment to supporting young, growing companies in the Pacific Northwest," said chair Dan Rosen, President & CEO of Dan Rosen & Associates. "The increased number of investments is key; it shows that we are bringing great deals to our members and that they are investing. Because of the quality of the deals screened by the AoA, we have had an infusion of new, active members. As we enter our tenth year, it is clear that the AoA model has withstood the test of time."

Of the 32 companies who presented to AoA for the first time in 2007, 15 received funding. This represents just under 9% of the 174 companies interviewed, coached and screened through the Alliance of Angels program last year. Consistent with the trend in 2006, 40% of the funded companies were already generating revenues, 40% had developed their product or service but were yet to monetize it, and the remaining 20% were true seed investments, where the concept or prototype was still under development. Eight companies that had previously presented at an AoA luncheon secured new investment after returning to deliver a progress update.

Another 21 companies received follow-on financing from AoA investors without presenting to the full membership in 2007. These were companies that had presented to and received initial financing from AoA members in previous years.

"It is a mark of experienced investors that they participate in successive rounds of their best companies," stated Rosen. "The strength of our follow-on financing demonstrates that AoA members are excellent investors and help guide their companies toward successful outcomes. It's also an excellent indicator that AoA's screening process works and is selecting winning companies from the start. This is positive news for both the AoA investors and the entrepreneurial community."

Web and software companies captured the greatest number of deals, accounting for 26% and 20% of the total, respectively. The balance of high tech investment was spread among a variety of sectors, including biotechnology, diagnostics, electronics, materials science, nanotechnology, photonics and mobile technology companies.

Overall, high tech accounted for 87% of investments made by AoA members last year, up from 75% in 2006. The remaining 13% of investments completed in 2007 was directed to companies in the consumer products and retail sectors.

In its 10-year history, AoA members have directed a total of $35.4 million to more than 140 companies. Factoring in both direct and indirect funding, AoA has facilitated more than $70 million in investment in Pacific Northwest-based companies since 1998.

"AoA has gathered tremendous momentum over the past several years," Rosen said, "and I can't think of a better way to begin celebrating the 10th anniversary of our first investment than to set a new record for the number of companies funded through our program."

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Contacts:
The Alliance of Angels
Rebecca Lovell, 206-389-7321

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