When you invest in private companies, Scott Shane says you shouldn't rely on what the majority thinks
Myth: Most angel investors can predict what's going to happen with angel investing.
Reality: Every year, the Angel Capital Assn., the industry trade group, conducts a survey of the leaders of its nearly 200 member groups. Part of this survey asks about the current year's investments, and part of it asks for predictions about the next year.
Because one can compare the predictions made for 2008 (as shown in the 2008 report with the actual outcomes for 2008 (as shown in the 2009 report, I was able to examine how accurate the angel group leaders are in predicting what will happen in the market for angel capital.
Original Article: What Most Angel Investors Can't Predict - BusinessWeek
