Study: Groups are the future for angel investing
Entrepreneurs looking for risk capital to fund growth will need to get to grips with the rise of the angel group, according to the latest research by leading academics into business angel activity. In a joint project undertaken by the universities of Glasgow and Edinburgh, the growth in the number of managed angel groups signifies a maturing of the angel investment market from a fragmented, anonymous and largely invisible activity in which angels invested on their own or with a few friends to one characterised by formal groups or syndicates of angels investing together. This trend - which has emerged for a variety of reasons, including the contraction of the venture capital industry and its shift to larger and later stage deals - is likely to accelerate as alternative sources of financing from banks and venture capital continue to stagnate or even decline further.