Women now account for nearly 47% of angel investors, and get nearly 47% of the money

By Steve Kerch

July 31, 2024

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3 min read

The percentage of women who are angel investors has climbed over the last three years and, perhaps not surprisingly, so has the percentage of women-owned ventures that receives the funding that angel investors provide, according to a new report from the Center for Venture Research at the University of New Hampshire.

In 2023 women angels represented 46.7% of the angel market, an increase from 2022 (39.5%) and 2021 (33.6%). Women-owned ventures accounted for 46.3% of the entrepreneurs that were seeking angel capital, a marked increase from 2022 (37.1%) and 2021 (28.6%).

Just under 29% of the women-owned companies that sought funding received it in 2023, more than the overall market success rate of just over 24% and up from 25.6% in 2022.

“These data indicate that the increase in women angels may in turn be encouraging more women entrepreneurs to seek high-risk angel capital,” wrote Jeffrey Sohl, director of the center in a synopsis of the study. “This high percentage of women presenting, and the higher women yield rate (above the overall market yield rate) indicates that these women-led deals were of high quality.”

Minority angels accounted for 5.7% of the angel population and minority-owned firms represented 10.3% of the entrepreneurs that presented their business concept to angels in 2023. The yield rate for these minority-owned firms was 32.1%, similar to the 33.1% yield rate in 2022.

“This robust yield rate is promising, but the small number of minority entrepreneurs seeking angel financing could be improved,” Sohl said.

Overall the angel investor market in 2023 saw an increase in active investors, but a decline in the number of investments and the total dollars invested by angels, the study found. Total angel investments in 2023 were $18.6 billion, a decrease of 16.4% from 2022. A total of 54,735 entrepreneurial ventures received angel funding in 2023, a decrease of 12.2% over 2022 investments.

The number of active investors in 2023 increased to 422,350 as compared to 367,945 in 2022, an increase of 14.8%. The average angel deal size in 2023 was $339,390, a decrease of 4.8% from 2022. The average equity received was 9.7% with a deal valuation of $3.5 million, a decrease of 7.9% from 2022.

“Valuations had been increasing steadily since 2018, and the resulting upward pressure on valuations appears to have resulted in a not surprising correction in angel market valuations that started in 2022,” Sohl said.

Angel investments in the seed and start-up stage were 41% of the total in 2023 and for the fourth consecutive year the seed and start-up stage market was the predominant investment stage for angels. Early stage investing was 35% of the deals in 2023. There was a significant shift away from the expansion stage in 2023 (18%), down from 35% in 2022, potentially reflecting a recommitment of angels to the earlier stages of the investment market, the study found.

The Center for Venture Research has been conducting research on the angel market since 1980. The CVR’s mission is to provide an understanding of the angel market through research.

Steve Kerch

Steve is a member of Equities Staff editorial team. He brings 22 years of investment publishing experience to the table having worked at MarketWatch most of his career. He is an experienced editor, writer, columnist, TV host and radio commentator with an extensive background in digital and print journalism. Steve is a proven digital traffic generator and an innovator who has developed specialized digital and print content for local and national audiences.