In 2002, angels invested $15.7 billion in entrepreneurial businesses in the U.S., according to the Center for Venture Research. Yet - until now - there was no organization to establish best practices or collect data on how to maximize the performance of groups of angel investors.
The new Angel Capital Alliance, sponsored by the Kauffman Foundation of Kansas City, has been endorsed by 46 angel capital organizations throughout the U.S. and Canada with many other angel groups interested in membership.
"Access to capital is a big hurdle for entrepreneurs, and we're trying to lower it," said Carl Schramm, president and CEO of the Kauffman Foundation. "While the flow of formal venture capital is important to our economy, only a very small percentage of entrepreneurs receive VC funding. We intend for this alliance to help entrepreneurs and investors alike by increasing awareness and availability of angel funding and establishing enhanced standards for investment practices."
Approximately one in 10 start-up or early-stage companies in the U.S. receives equity capital from angel investors. Angel investors, on an individual basis or through groups, may invest up to 90 percent of the independent equity that early-stage businesses receive. Angel organizations are important because they help individual investors combine their funds with other angels, lead to better investing practices as members learn from one another, and make investors more accessible to entrepreneurs as groups publicize their existence in their communities.
Angel investing networks
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