Report: Cherrystone named one of top angel groups in New England

CALIFORNIA led investment deals by region at 19.6 percent of the total, with New England (12.7 percent) and the Great Lakes (12.2 percent) following closely behind, according to the latest Halo report. / COURTESY HALO REPORT
CALIFORNIA led investment deals by region at 19.6 percent of the total, with New England (12.7 percent) and the Great Lakes (12.2 percent) following closely behind, according to the latest Halo report. / COURTESY HALO REPORT

PROVIDENCE – Cherrystone Angel Group is one of the top three angel groups in New England, according to the Angel Resource Institute at Willamette University’s 2015 second quarter Halo report: geography edition.

The ranking looked at cumulative deals funded between 2010 and 2015, ranking Cherrystone second, behind only Boston’s Launchpad Venture Group. Maine Angels placed third in New England, according to the report.

“This is a great reflection of the wonderful work we are doing here, the great companies we are funding and the active membership that we have,” Jennifer Schwall, Cherrystone Angel Group executive director, said in a statement.

Cherrystone has invested more than $18 million in 24 companies since its founding in 2004. Its membership has grown to more than 60.

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Robert J. Manning, Cherrystone chairman, said they are pleased with the Halo’s recognition of Cherrystone’s role in the New England angel funding market.

“Cherrystone’s diverse membership base and the wide set of skills possessed by our members has allowed us to be one of the principal ‘go-to’ sources for early stage funding in several different sectors such as bioscience, medical devices and technology. We look forward to continuing our role as a key capital provider to early stage ventures in Rhode Island and [southern] New England,” Manning said.

The report data is based on 4,719 deals nationwide totaling $7.5 billion in total rounds. It highlights 10 regions in the country: California, Great Lakes, Southeast, New England, Texas, Northwest, Mid-Atlantic, Southwest, New York and Great Plains.

It said that all 10 regions across the country have seen increases in round size in the last six quarters, with the largest increases in round sizes in the Great Plains ($200,000 to $1.1 million), Mid-Atlantic ($300,000 to $1.5 million), and Northwest ($300,000 to $1.5 million) regions.
The report said that over the last five years, California has completed the most investments, at 19.6 percent of the total, with New England (12.7 percent), and the Great Lakes (12.2 percent) following closely behind.

“There has been a long term trend towards increasing round sizes and valuation in all geographies. What makes this report unique is, for the first time, we can see the difference between regions within those trends, and also relative to industry sectors,” Angel Resource Institute Vice Chairman of Research Rob Wiltbank said.

Other highlights of the report include:

  • Seed stage valuations have risen steadily over the last five years to an all-time high of $3.95 million (median), a 30 percent increase compared with 2014.
  • Round sizes in deals with only angel investors grew from $800,000 in 2014 to more than $1 million year to date in 2015.
  • Angel investing activity is equally distributed across the country when comparing East and West or North and South.
  • Each region has different industry concentrations. California and New York tend toward mobile and Internet, while Texas has completed more investments in food and beverage than any other region. The Great Lakes tend toward industrial and health care, while New England and the Southeast are relatively balanced across sectors.

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