Site Unseen: More ‘Angels’ Invest via Internet – Risks Abound, but Investors Search for Promising Startups

"With most of these investments, you’re going to lose money." "You’re adding a whole layer of risk to an already very risky investment class," says Jeffrey Sohl, director of the Center for Venture Research at the University of New Hampshire.

Some critics say it is foolhardy to rely heavily on online research and tools to make startup-investment decisions, without ever meeting or even talking to the entrepreneurs involved.

By SARAH E. NEEDLEMAN and LORA KOLODNY

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