I work with many angel investors and know that most hope and believe that their support helps the companies they invest in. Now they have proof. Two studies show real evidence that startups backed by strong angels really do better than their counterparts that fail to get such funding. The studies by Harvard Business School professors William Kerr and Josh Lerner and MIT Sloan School of Management professor Antoinette Schoar (along with Stanislav Sokolinsky and Karen Wilson) offer great insight into the power that angel groups have in supporting startup companies. Lerner presented findings of angel groups in the United States and previewed findings of angel groups abroad during a recent Angel Capital Association (ACA)webinar. He will formally present the findings of the global study June 2 at the London Business School. Although there’s been significant growth over the last decade in startup investing by angels, angel groups, and super angel funds, there are very few studies to assess the impact of these investments on startups.
