Angel investment has grown greatly over the last few years, and the US continues to be the leading market for Angel Investment. The investment is a potential advantage for both sides, with entrepreneurs getting the start-up funding that they need, and investors getting a high return on investment should the business be successful. However, such investments are quite risky, as most start-ups and early stage companies do fail.
Statistics claim that among US companies that received angel investment funding last year, the average amount of capital raised was about $450K. While the top tier of angel investments go to the technology, medical and healthcare sectors, investments have been made in a wide variety of business sectors. The amount of active angel investors in America continues to grow, with the Small Business Administration estimating that there are now over 250,000 active angel investors in the US, and that they provided funding for about 30,000 companies per year.
With the current market fluctuating rapidly, many financial institutions have tightened their lending policies that were already somewhat difficult for new businesses and entrepreneurs to obtain. At the same time, more investors are taking funds out of the stock market and looking to other methods of financing, such as Angel Investment. This makes the market somewhat more competitive for angel investment, as most entrepreneurs will look at this option.
The Mid-Atlantic Investment Network allows members to look further when it comes to seeking investors or investment opportunities. We have members from countries all around the world, enabling more connections to be made. In the past, most angel investments have been locally based, with a majority of them being located near the investor's base. However, with the ability to reach people worldwide, our network plans on opening up the market.
Some investors will just want ongoing information on how it can generate solid returns on their investment and reports on how the company is progressing, while some will also want to have a "hands-on" approach regarding how the business is run. Angel investors usually have expertise in the business sector that they invest in, and perhaps a fair share of industry contacts, but it is important for both sides to understand what their roles are and this should be established from the very beginning.