I took the post by Ciarán today about the latest Earlybird fund as a impulse to complete a post longly overdue.
End of 2012 we asked ourselves: being operational as angelfund.vc for 1+ year and investing in 5 deals so far, who have these people been we’ve talked to (statistic-wise) and what can we learn out of our data.
So we looked at the most recent 200 applications that we evaluated and found that:
- not surprisingly, 59% of the deals are from Germany (37% Berlin)
- 31% are from Europe
- 10% global (Chile, Australia, USA)
and all where willing and motivated to build their business in Berlin!
Most of those companies where in a stage between Prototype and Beta and had something to show not only from a pitch deck but also from a product perspective. Still, 33% did not have a CTO when they applied. Coincidentally, 32% of all applied companies where not active anymore when we conducted this infographic early in 2013.
More then 75% of the teams worked more then 3 month – in particular 40% even worked more then 6 month full time on their company!
We have seen a lot of Marketplaces and Aggregators but also Social Platforms and Networks where still popular.
The majority of the rejections where due to a bad / not existing business model or difficult market and a not scaleable model. The “idea” sucked is clearly a subjective judgement by us 🙂
Since we only fund complete teams and teams that really can convince us, also these two contributed to the top 6 reasons of rejection.
45% of the companies changed their Business Model after application.
69 companies replied to a more detailed survey and of of those 30% (21 companies) of all applicants received money from somewhere else (13% received > 150k) – this equals 10% of all companies that applied received outside funding.
We continue to evaluate businesses from around the world and we’re happy to look into your startup – simply answer those questions at angelfund.vc/apply