As noted in Qualification of an Angel (siliconindia, December ’99, www.siliconindia.com/magazine), angel investing is a phenomenon on the venture capital scene. It is estimated that each year over 250,000 angels invest $10 billion to $20 billion in 30,000 firms in the US. The previous article focused on the “invisible” quality of these private investors, but there is also another aspect to angel investing: the growth of “bands of angels” roaming the high-tech corridors seeking to avoid the pitfalls associated with individual angel investing, and pooling their resources for more investing and negotiating power.
What are those problems? We can think of four that have led to the formation of quiet angel groups, giving Regulation D qualified investors the opportunity to target their own seed capital.

First, individual angels have a hard time finding appropriate ventures, and the process to unearth them is inefficient. Second, individual angels have little or no support staff and limited time and resources. Each step of the angel investing process benefits from the efforts and skills of members. These steps include sourcing and screening of deals, due diligence, term negotiation, post-investment involvement and follow-on financing, as well as exit.

Two other reasons why angels form bands are: the visibility as a group and the opportunity to network with other angels for learning and fun.

If you have more query about magazine please send mail to

May 12	April 12	March 12	Feb 12