Predicting a Drop in Angel Investment

Posted by: Nick Leiber on December 11, 2008

What’s the outlook for angel investment this year and next? An estimated drop of about 10% in 2008 compared to 2007 and a decline in 2009 as well. That’s according to the results of a new survey by the Angel Capital Association of more than 100 of its angel group leaders who represent about 5,200 accredited investors. Based on responses, the average size of group investment per deal in 2008 was $280,936. You can read more about the results here.

Reader Comments

Ilya Bodner

December 11, 2008 12:47 PM

The phrase "angel investor" has been searched 20% less than any other part of the year. According to Google the trend has slowed down, and small business owners are very nervous about 2009 as a whole.


Sincerely,


Ilya Bodner
Small Business Owner
Initial Underwriting Group

Mark

December 26, 2008 6:58 PM

I think that drop sounds extremely optimistic--unless you're thinking that additional investment into existing deals counts. I wouldn't be surprised to see a 30-40% drop in new deals funded. In other words, Angel firms are going to be trying to get liquidity out of their existing sinking portfolios, not investing in new deals. If you're an entrepreneur, you better not count on creating a business plan dependent on getting Angel funding.

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What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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