Wednesday, January 16, 2008

Austin American –Statesman Article on Angel Investing

Not too long ago the Austin American-Statesman ran an article on angel investing in its TechMonday section. I was glad to see the extensive coverage which drew on survey information from the University of New Hampshire. CTAN fills out their survey forms regularly as we support the information they gather about angel investing. The Angel Capital Association is also engaged in a similar effort to provide data and stats about funding, membership, etc.

The article highlighted two companies CTAN recently funded: Minggl, a social networking site, and Displaypoints, an at the restaurant table digital media play. Both companies have solid product offerings and strong management teams behind them. According to the stats, Angels funded 24,000 companies last year compared to 1822 by venture capitalists. That’s quite a difference.

It’s interesting to note that the data shows a flat to slightly down trend for angel investing across the USA. This is a little surprising as CTAN continues to see strong deal flow and increasing investments. I’m not sure what caused the numbers to slow. Angel investing runs in five to seven year cycles. We had a strong cycle starting in 1994 and then closing in 2001. Starting in 2005 the cycle started again. We currently see about thirty deals a quarter submitted to our website from which we can choose four deals to present. Of the four deals that present we typically fund two of them. Next year we plan to increase the number of presentation meetings so we can view more deals.

Best regards,
Hall T.

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