Individual angels are increasingly giving way to pooled investments in start-ups.
Looking for an angel investor in your new business? You’d better try to find more than one. While dealmaking is down only 3%, angels are forking over a lot less. Angel investment dollars fell 26% in 2008 to $19.2 billion, split among 55,500 deals, according to the University of New Hampshire’s Center for Venture Research.
Try seeking out an angel group or syndicate. The number of them is growing as more individual investors look to spread the risk by pooling their money. Moreover, angel groups and syndicates -- made up of two or more groups that coinvest -- are plunking down much higher amounts than stand-alone angel investors. A survey of Angel Capital Association members found that the average pooled investment in 2008 was $281,000, whereas individual angel investments ranged from $10,000 to $200,000 per start-up.
Need Seed Capital? Angel Groups May Be Your Best Bet - Kiplinger.com