Angels Fill Widening Startup Funding Gap

Colleagues,

As reported in the Austin Business Journal ... Although U.S. angel investors and venture capitalists both invested roughly $17.6 billion in 2009, angels funded more than 13 times as many companies, according to the University of New Hampshire ’s Center for Venture Research ...

... Capital from angels — accredited individuals who typically invest their own money in startups that are too nascent to attract institutional financing — has historically filled the gap between friends and family, who provide seed funding, and venture capital (professionals investing other people's money)...

... the current economic crisis has caused this funding gap to expand as the venture capital industry contracts ... making it increasingly difficult to raise the $500,000 to $2 million that will likely make or break many high technology start-up companies...

... It’s at this critical stage ... that entrepreneurs are turning to networks of angels to fill the void ... In the first quarter 2010, angel investment deal flow was up 33% year-over-year ...

... Read on at: Angel networks step up to fill widening startup funding gap - Austi...

ENJOY!