The Angel Capital Association (ACA) just reported in their new mid-year survey, the "Angel Group Confidence Report," that angel groups across the country are meeting expectations set early this year to increase 2007 investment activities in early stage companies over 2006 levels.
The participating angel groups continue to forecast 2007 gains over 2006 in number of investments made, the quality of business opportunities presented by entrepreneurs, and co-investment activity with other investors. Additionally, the study also found that angel groups and venture capital firms have improved their integrated investment relationships, with 74% believing that overall relationships between these two groups have improved over the past three years.
As reported in other Empowering Small Business blog posts, angel investors are high net worth individuals who make equity investments into what are usually early stage or growing companies, usually in the start-up period. In many urban communities, angel groups have formed to more systematically review and evaluate business investment opportunities. (The Seattle area has the Alliance of Angels, Puget Sound Venture Club, and the Tacoma Angel Network.)
Fifty percent of this survey's participants said their angel group's deal flow had seen increases in quality and quantity, year over year, during the first six months of 2007 and they expect this trend to continue. In the first half of 2007, these angel organizations reported an average of 3.7 investments versus an average of 7.4 investments in 2006.
The Confidence survey also showed increases in the numbers of investors per angel groups as well as the trend of investing along side with other angels and early-stage venture capital firms. In the first six months of 2007, the average number of accredited investors per group jumped from 41 to 52.5 investors. Close to half (49.2 percent) of these angels reported that they "syndicated" - that is, invested along side or followed on - investments made by VC firms or other angel groups.
The Angel Capital Association is a professional alliance of U.S. and Canadian angel groups, with more than 155 affiliates and member groups representing over 6,000 angel investors.
Shivonne Byrne, Innuity CMO
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