Tom Walker, Business Columnist

Read more Innovation & Entrepreneurs columns by Tom Walker.

Contact Tom -- E-mail: twalker@i2e.org.

Angel investors are vital to a startup’s future

 
BY TOM WALKER    Comment on this article Leave a comment
Published: January 19, 2010

How do angel investors contribute to entrepreneurs and the entrepreneurial economy? Let me count the ways.

First and foremost, over the past decade, angel investors have become the de facto source of equity capital for seed and early stage companies. The limited landscape for IPOs and a venture capital model that calls for fewer, larger, and, therefore, later stage investments, have put venture capital beyond the reach of most entrepreneurs.

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DID YOU KNOW?
According to the 2009 Angel Capital Association Angel Group Confidence Report, more than 90 percent of angel group respondents looked to co-invest with other angel groups and nearly 63 percent of member groups co-invested with a venture capital firm and/or had a portfolio company receive a follow-on round from a venture capital firm in 2008.

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