Study: Angel investors spend fewer dollars but support more companies in first half of 2009

Angel investors across the country spent fewer dollars but backed more companies during the first half of 2009 compared to last year, according to a study released Tuesday by the Center for Venture Research at the University of New Hampshire.

The study said investments were down 27 percent to $9.1 billion during the six months ended June 30. But 24,500 entrepreneurial ventures received financing, 6 percent over last year. The number of active investors was flat at 140,200.

“While angels have not significantly decreased their investment activity, they are committing less dollars resulting from lower valuations and a cautious approach to investing,” Jeffrey Sohl, the center’s director, said in a statement.

Health care services/medical devices and equipment was the largest sector, receiving 28 percent of the capital raised. Software and electronics/hardware shared second place, tied at 14 percent.

Angel investors also favored later-stage companies. Investments in seed and start-up stage companies received 27 percent of the capital raised, a decrease of 19 percent from the same six months in 2008.