News

Angel Investment syndicates mean larger financings, better terms

Historically, angel investors were individuals who had made a lot of money from starting or selling a business and were looking to work with a budding entrepreneur to do it again. The angel investor contributed money and contacts, but often also worked on the business, arm-in-arm with management.

Starting in the 1990s, the angel investment climate underwent two parallel transitions. First, as their numbers grew, angels became less committed participants in a business and more dabblers who would throw $50,000-$100,000 into businesses they liked. Second, angel investors began to form groups in order to aggregate capital, take advantage of members’ differing and complementary ares of expertise, and have a little fun at monthly meetings.

Angels are now a major force in new business funding, last year investing more than $23 billion in nearly 50,000 ventures, according to the Center for Venture Research at the University of New Hampshire and the MIT Entrepreneurship Center. This investment total is more than the $21.9 billion that venture capital firms invested, according to the MoneyTree survey by Pricewaterhouse Coopers, Thomson Venture Economics and the National Venture Capital Association.

Mass High Tech: The Journal of New England Technology – April 3, 2006
by David Wolf

Full Story: http://www.bizjournals.com/masshightech/stories/2006/04/03/newscolumn3.html?from_rss=1

Sorry, we couldn't find any posts. Please try a different search.

Leave a Comment

You must be logged in to post a comment.