Angel investor groups are gaining prominence as early-stage industry benefactors, achieving top rankings in industry-specific annual surveys of private equity investment firms for entrepreneurs.
According to experts in the field, angel assets are an emerging part of the financial order, comparable in significance to venture capital in the 1970s. Present-day financial institutions are beginning to view angel groups as significant.
The Band of Angels, a formal assembly of 100 current and former high-tech executives who invest their time and money in innovative startup companies, is an important angel investor group. Members of the band have founded companies such as Symantec, Logitech, and National Semiconductor.
Angels are typically high-net-worth individuals or “cash-out” entrepreneurs who are actively involved in the development of other entrepreneurs and the pre- and post-funding phases of the ventures they support. A growing number of angels have formed angel groups in recent years with the aim of accumulating capital and investment expertise. Approximately 200 angel investor organizations exist in the United States.
Angel investor groups have emerged as significant providers of equity capital to early-stage businesses. Angels have transitioned from investing as individuals and occasionally forming informal groups for specific investments to forming formal groups with rigorous venture capital-like procedures.
As the venture capital society has become more complex, angel investor groups have adapted to meet the requirements of the new environment. Due to the existence of seasoned angel groups with consistent performance, the majority of angel investors today are extremely knowledgeable about investments.
Any individual angel investor who decides to join a considerate group of angel investors will gain a tremendous advantage from the group’s knowledge.