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Episode 45: Breaking Down the 2025 Angel Funders Report | ACA Board Member John Harbison on Valuation Compression, Board Seat Decline, and Follow-On Performance
Today's episode explores three ideas that caught my attention:
- Angel board representation dropped from 34% to 26% - Despite consistently seeing better returns WITH board representation, fewer angel groups are securing board seats.
- Early-stage valuation compression - The gap between median pre-seed ($10M) and Series B ($19M) valuations has shrunk by 3x over the last few years.
- Hybrid angel group models write bigger checks - Groups combining both “pure networks” and funds tend to invest larger amounts than pure models.
I explore these ideas and more with John Harbison, ACA Board Member, Chairman Emeritus of TCA Venture Group, and co-author of the 2025 Angel Funders Report. As a current Angel Capital Association Board member, a contributing author for the comprehensive Angel Funders Report, and a repeat guest of the show, John offers a world-class perspective on angel investing trends and best practices.
During our conversation, John shares:
- A data-driven framework for understanding how follow-on investment rounds often deliver better returns than initial rounds - demonstrating how risk reduction and valuation timing can create superior portfolio outcomes for angel investors.
- Specific evidence that board representation increases company success by 8x - including actionable strategies for smaller angel groups to secure observer seats when full board positions aren't available.
- Practical insights on market cyclicality and capital efficiency during downturns - including strategies for angel investors to adapt their approach when "we're in one of those troughs" of the investing cycle.
Connect with John
LinkedIn | Blog
Stuff We Reference
- ACA Angel Funders Report
- Dr. Ron Weissman
- Launchpad Ventures
- Central Texas Angel Network
- Y Combinator
- Sequoia Capital
Know someone who would enjoy this episode? Share it with them!
P.S. Your feedback is important to me. Also, it tells the algorithms to pay more attention, which helps me out a lot. If you enjoyed this episode, hit the "like" button or leave a comment with your thoughts.
Want more?
- Get essential angel intel straight to your inbox every week with The Diligent Observer Newsletter.
- Check out the entire show library and follow via Apple Podcasts, Spotify, and YouTube.
Connect with Andrew
LinkedIn | X | Angel Ops E-Book
All opinions are personal and may not reflect the views of The Diligent Observer. Not investment advice.
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By Andrew KazlowToday's episode explores three ideas that caught my attention:
- Angel board representation dropped from 34% to 26% - Despite consistently seeing better returns WITH board representation, fewer angel groups are securing board seats.
- Early-stage valuation compression - The gap between median pre-seed ($10M) and Series B ($19M) valuations has shrunk by 3x over the last few years.
- Hybrid angel group models write bigger checks - Groups combining both “pure networks” and funds tend to invest larger amounts than pure models.
I explore these ideas and more with John Harbison, ACA Board Member, Chairman Emeritus of TCA Venture Group, and co-author of the 2025 Angel Funders Report. As a current Angel Capital Association Board member, a contributing author for the comprehensive Angel Funders Report, and a repeat guest of the show, John offers a world-class perspective on angel investing trends and best practices.
During our conversation, John shares:
- A data-driven framework for understanding how follow-on investment rounds often deliver better returns than initial rounds - demonstrating how risk reduction and valuation timing can create superior portfolio outcomes for angel investors.
- Specific evidence that board representation increases company success by 8x - including actionable strategies for smaller angel groups to secure observer seats when full board positions aren't available.
- Practical insights on market cyclicality and capital efficiency during downturns - including strategies for angel investors to adapt their approach when "we're in one of those troughs" of the investing cycle.
Connect with John
LinkedIn | Blog
Stuff We Reference
- ACA Angel Funders Report
- Dr. Ron Weissman
- Launchpad Ventures
- Central Texas Angel Network
- Y Combinator
- Sequoia Capital
Know someone who would enjoy this episode? Share it with them!
P.S. Your feedback is important to me. Also, it tells the algorithms to pay more attention, which helps me out a lot. If you enjoyed this episode, hit the "like" button or leave a comment with your thoughts.
Want more?
- Get essential angel intel straight to your inbox every week with The Diligent Observer Newsletter.
- Check out the entire show library and follow via Apple Podcasts, Spotify, and YouTube.
Connect with Andrew
LinkedIn | X | Angel Ops E-Book
All opinions are personal and may not reflect the views of The Diligent Observer. Not investment advice.