<aside> 🐝 For the second year, we surveyed members of Southern Angels to pulse-check their approach to investing in early-stage companies. Results help us understand the needs and goals of members so we provide the best service we can as an angel group.
We're very focused on creating a transparent operation so I'm sharing this summary of the 2022 Member Survey so founders have insight into the profile, interests and expectations of our investors.
</aside>
As a group in FY23, Southern Angels expect to facilitate $2.8M into 10 startups. This is from an anticipated 80 applications of which 20 will pitch to the group. This has already commenced with 4 promising startups having progressed to due diligence since June with potential investment of more than $1M.
Based on previous deals and forecasts from the survey, supported startups are likely to get an average contribution of $116,000 to their round from Southern Angels, but the range is anywhere from $50,000 to $680,000 depending on the number of members who chose to get involved.
If consolidated survey data represented a single persona of a Southern Angels member, he/she would be looking to invest $108,000 across 3-4 startups each year.
The persona is seeking startups with an experienced founding team, raising at a pre-money valuation of $2-7 million, for a product with early market traction. The desired addressable market is greater than $200M and the startup forecasts at least a 5x return on investment in 5-7 years with a clear exit strategy.
The FY21 survey indicated that members prefer to invest in “startups in industries they're familiar with”, but in FY22 the predominant response was that members “will consider startups outside their expertise if other aligned angels invest”. This change indicates a growing trust in the expertise of other members in the group.
Southern Angels' net promoter score (NPS) in FY22 is 89%, with majority of members "very likely" to recommend the group to a friend or colleague (down slightly from FY21’s 91%).
https://media-exp1.licdn.com/dms/image/D5612AQHkxxGL6PdJow/article-inline_image-shrink_1500_2232/0/1659922605400?e=1665619200&v=beta&t=LD4oBRnnHFSojbov57JvoYO-odoqv0SWp39J7laVUOM