Angel Investors Pull Back From Betting On Start-Up Businesses
According to a recent study by the University of New
Hampshire�s Center for Venture Research, �angels� are getting cold
feet! (An angel is a wealthy individual willing to invest in a new
business before anyone else does.)
Less than half (48%) of these investors are betting
on new start-up businesses, a drop from 59% a year ago. And for
years prior the figure was around 75%. Where are the �angels�
investing? In later-stage companies, as their business plans appear
better prepared and fleshed out.
Venture-Capitalists Also Prefer
�Big� is in, in the venture capital world these days.
Industry data shows they�re putting bigger chunks of cash into
larger, more-established companies and easing up on earlier-stage
The VCs are opting
for bigger investments in more mature companies because these firms
might go public or be purchased more quickly than newer firms. The
goal of any venture-capital investment is an �exit,� usually in the
form of an IPO or an acquisition.