July 13, 2026 — New data reveals a resurgent angel market fueled by larger deal sizes, a pipeline of high-potential exits, and a sharp pivot toward the two sectors defining tomorrow: Life Sciences and Artificial Intelligence in ACA’s newly published 2026 Angel Funders Report. Drawing on investment data contributed by ACA member organizations, the report provides one of the industry’s most comprehensive views of early-stage investing trends, market performance, and emerging opportunities.

The report finds that the 2025 angel market showed the first signs of a disciplined recovery following several years of post-pandemic market correction. ACA-reported angel investment increased 12% year over year, rising from $437 million in 2024 to $491.3 million in 2025. The report has found angel groups deployed more capital per investment and per company, signaling increased selectivity and conviction among investors.

“The data suggests we are entering a healthier phase of the market,” said Pat Gouhin, CEO of the Angel Capital Association. “Angel investors continue to fund innovation and support entrepreneurs, but they are doing so with greater discipline, stronger diligence practices, and a more deliberate approach to portfolio construction. The result is a market that is recovering through quality rather than quantity.”

Among the report’s most significant findings is the continued rise of life sciences as the dominant sector for angel investment. Medical Devices, Pharma and Therapeutics, Digital Health, and Medical Diagnostics collectively represented nearly 47% of reported angel investment dollars in 2025, up from 37% in 2024 and 31% in 2023. The report also found that nearly two-thirds of reporting angel groups completed at least one AI-related investment during the year, with investors favoring applied AI, healthcare AI, and industry-specific solutions over foundational AI technologies.

The report highlights several additional trends shaping today’s angel market:

• Angel groups are writing larger checks while funding fewer companies.
• Follow-on investments are attracting increasingly larger capital commitments.
• Hybrid angel organizations that combine networks and funds are deploying significantly more capital than traditional models.
• Governance participation continues to decline, raising concerns about angels’ ability to maintain board influence and strategic oversight as financing rounds grow larger.

The Angel Funders Report 2026 also examines valuation trends, financing structures, artificial intelligence investing, angel group performance, exit outcomes, and strategic priorities for angel investors and angel group leaders.

More than a market report, the publication reflects ACA’s commitment to investor education and data-driven decision-making. Through initiatives such as the Angel Funders Report, Ann & Bill Payne ACA Angel University, the Summit of Angel Investing, webinars, and peer learning programs, ACA continues to equip investors with the knowledge and resources needed to navigate an increasingly sophisticated early-stage investment landscape.

“This report demonstrates the value of transparency and collaboration across the angel community,” Gouhin said. “The willingness of angel groups to share data helps all investors make better decisions, strengthens entrepreneurial ecosystems, and improves outcomes for founders and funders alike.”

The Angel Funders Report 2026 is available now as a free download.

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