I N V E S TME N T ACT I V I T Y I N 2 0 2 0 The F i nanc i ng Funne l
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treme, four organizations presented all of their appli- cants to their members. Two of these organizations had fewer than ten applications for funding. Half of the or- ganizations had a presentation rate — the proportion of businesses that were presented to organization mem- bers that went on to raise finance — of more than 30%.
There is considerable variation in these ratios across organizations, reflecting their different operating mod- els and the number of funding applications they receive (Figure 10). Most angel organizations undertake screen- ing, presenting only a minority of their applicants to their members — 78% presented fewer than one-third of their applications to their members. At the other ex-
FIGURE 1 1
Organization Presentation, Funding and Application Success Rates
1.2
Application Success Rate (#Funded / #Applications)
1
Presentation Rate (#Presentations / #Applications)
0.8
Due Diligence Success Rate (# Funded / #DD)
0.6
0.4
Funding Rate (#Funded / #Presentations)
0.2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 0
Angel Groups
Note: The angel organization that has a funding rate of 1.20 reported that they funded six new investments while only receiving five applications, sug- gesting that they may have joined an existing syndicated deal led by another organization in addition to the five formal applications that they received.
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