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Angel Investing Is Back

Published: 2/27/2007 10:51:04 AM

I think angel investing is back and will turn out to be even stronger and more pervasive than the last cycle of technology boom and bust.

The tech bust was not kind to angels.  There were many angels who were caught in cram-downs, wash-outs via pay-to-play rounds, or whose investments were simply shut down by the bigger investors.

Over the past few years, I've been seeing a steady comeback.  I can't point to specific numbers or quote statistics, but the mood and outlook of angels seems to have improved dramatically.  The sheer numbers of fresh faces at investing conferences, pitch events (AKA beauty contests) and angel group meetings has increased.

There is certainly a strong demand for angel money.  VC funds are only getting larger, which means there is less ability for VCs to place money early in the process - they simply don't have the time to make all the bets their huge funds require to justify their return expectations.

That is where angels are stepping in - at the very early stage of seed and smaller series A rounds.  Maybe that also means there is a whole new group that needs to be educated.  I'm also seeing more organization at angel investing conferences - more educational content aimed squarely at new angel investors.

I wish this bumper crop of angels much success.  Don't forget to do your due diligence....!

Don Jones

www.VentureDeal.com

 

Don Jones
CEO, VentureDeal

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