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The UNH Center For Venture Research is reporting that Angel $ investments were down slightly in 2009 from 2008 while the number of investments increase which results in less dollars per investment.

Software was the largest investment (19%) with healthcare services/medical devices (17%), industrial/energy (17%), retail (9%) and biotech (8%). For 2009, mergers and acquisitions represented 54% of the angel exits, and bankruptcies accounted for 40 % of the exits. Annual exit returns based on mergers, acquisitions and IPOs, for the angel investments were between 23% and 38%.

The biggest difference was seen in the seed/start-up stage and first stage investing, for 2009 the capital investments were 35% of the angel investment, this was down 10% from 2008. What makes this difficult is the trickle down from venture capital and other funding sources have really steered away from seed/start-ups as they view this segment as high risk.

Source:  Angel Investor Market Holds Steady In 2009 But Changes Seen In Types Of Deals, UNH Center For Venture Research Finds