Since the great recession of 2008-2012 has officially ended, Angel Investors have again returned to the table and are writing checks to young companies looking for seed and early stage capital. The amounts are smaller than before the recession but with inordinately low interest rates at banks, money market funds and T-Bills, investors with cash are looking far and wide for better returns on their money. Investment in young companies is a very lucrative alternative but proceed with caution, there is risk where the higher returns occur.
An Angel investor who puts all of his capital in one venture and picks the wrong one, can quickly lose it all. Spreading the risk around over 2-5 companies is highly recommended only after full and detailed “Due Diligence”. Listening to presentations at our monthly Gathering of Angels is an excellent start and introductions to quality presenters is step one but several meetings and fact checking is required after the GOA presentations. Confirming customers and background checks on principals is part of the investment process for an Angel Investor before he/she pulls the trigger and writes a check to the Entrepreneur.
Angel investors come from all backgrounds and increasingly are female as now 12-15% of all Angels are female 84% of women investors are part of an Angel Forum like GOA or Club and make now 1-3 investments per year. Female investors are younger than their male fellow investors and are in the 45-55 age band. Our Angels at Gathering of Angels support these percentages and are most welcomed as active participants in our monthly meetings in Atlanta, Santa Fe and Hilton Head. We plan to open GOA meetings in Palm Beach and Big Canoe in 2016.