95% of U.S. Startups Funded By Angels

By David Drake, CrowdFunding Beat Sr. contributing editor Angels seem to be everywhere these days. A whopping 95% of the startups in the U.S. in 2012 were funded by angel investors. And the numbers continue to rise. Angel investors, a.k.a. business angels, are affluent accredited investors, typically successful entrepreneurs or retired business people, who invest their own money informally in startup companies. To lessen the high risk involved, many angel investors join angel networks in which they share their knowledge and expertise, and pool their investment capital. The most sophisticated angels become known as “super angels,” insightful and well-connected players in the startup business space. Citing a study by the Center for Venture Capital, the U.S.-based Angel Capital Association reports that angel investors funded 67,000 deals worth $22.9 billion in 2012, up 59% from 2011. VCs funded only 3,700 deals, 5% of the total (though these were worth $26.7 billion). In Europe, meanwhile, the European Business Angel Network (EBAN) reports that angel investors funded 2,913 deals worth €5.1 billion (about $6.7 billion) last year, up 19% from 2011. The trend for 2013 finds U.S. angel networks leveraging and embracing crowdfunding, as the U.S. moves toward legalized crowdfunding for equity in […]

95% of U.S. Startups Funded By Angels: CrowdFund Beat.