Angels are individuals who provide investment and intellectual capital to entrepreneurial startups. These resources are provided to startups in exchange for convertible debt and/or equity in the startup. In recent years, these investors began organizing into groups for the purpose of sharing the efforts related to identifying and assessing potential opportunities and pooling their investments.
Background Information
Originating from the theatre industry, the term “angel” originally described wealth benefactors who provided funding for theatrical productions. Today it applies to high net worth individuals, (accredited investors under the definitions of such by the SEC) who provide seed capital for scalable, high growth companies. The Angel Capital Association and the Angel Fund, the major industry associations in the United States both promote membership rosters which exceed 200 groups.
There are two types of angel groups, angel networks and angel funds. Groups whose members participate actively in the identification, screening, and vetting of the investment opportunities, who make their own investment decisions for each investment opportunity, and who invest as a group through a shared investment vehicle, are generally described as angel networks. When the members of the group invest based on established criteria and guidelines and primarily utilize the support of third parties to identify, screen and complete the due diligence on the opportunity, they are generally identified as a fund. Under the fund structure, members commit capital and invest in all opportunities identified as appropriate based on the criteria established for the fund.
Angel investment carries with it a high degree of risk. As a result, angel investors usually seek returns of 10X within five years as most early stage investments fail, resulting in the angel losing their entire investment. These issues cause the angel investor to focus on developing a highly diversified portfolio, thereby reducing the risk of the overall investment. Analyses over time has revealed the typical stable angel group with diversified portfolio returns at a rate in the mid to upper teens to the low to mid-twenties on a percentage rate basis.
The statistics concerning angel groups and investment vary widely.
- Groups may have as few as 10 members or as many as 150.
- Some syndicate, some don’t.
- Some invest locally, regionally and nationally, even internationally, others invest only locally.
- Different groups invest in different industries and at differing levels.
- Smaller and newer groups may provide investments from $50K to $250K while large established groups may invest up to $1.5M or more.
It is therefore extremely important that the entrepreneur understand the angel groups structure, approach and criteria thoroughly. Otherwise, pursuing an investment from any given angel groups may be little more than a shot in the dark, wasting the entrepreneurs’ time and resources, something they have in extremely limited quantities.
Resources
Angel Capital Association
The Angel Capital Association, (ACA) is a “leading professional and trade association supporting the success of angel investors in high-growth, early-stage ventures.” With a membership of more than 200 angel groups and 12,000 angels / accredited investors, the ACA is a provider of professional development, industry representation, public policy advocacy and an array of benefits and resources to its membership.
ACA indicates its mission is “to fuel the success of angel groups and private investors that invest in high growth, early-stage ventures.”
Angel Pool
AngelPool is one of the largest organization of angels and accelerators in the world. They have a membership of Over 200 angel groups including 5,000 angels which share knowledge, deals, best practices, and learnings with each other. They are comprised of over 500 volunteer leaders who graciously volunteer their time on our various boards, judging and mentoring. Their mission is to help angels, groups, accelerators, and funds profitably find and invest in the best tech disruptors and founders globally to drive jobs, innovation, and growth.
Alliance of Texas Angel Networks
The Alliance of Texas Angel Networks, (ATAN) is a non-profit organization established to facilitate cooperation between the angel investor groups in Texas. Over the last several years, these groups have worked together and shared investment opportunities and “know how”.
Appalachian Regional Commission
The Appalachian Regional Commission, (ARC) supports various activities in order to promote entrepreneurship and business development in the Appalachian Region. Their objective is to help diversify the region’s economic base and enhance entrepreneurial activity by developing and marketing strategic assets, increasing the competitiveness of existing regional businesses, and fostering the development and use of innovative technologies.
Angel Association New Zealand
The Angel Association New Zealand was established in 2008 to facilitate the efforts of business angel networks and early stage funds to work towards an agreed national vision. The Association desires to increase the quantity, quality and success rate of entrepreneurial investments in New Zealand facilitating the strengthening of the New Zealand entrepreneurial ecosystem.
The primary objectives of the association are to:
- Promote the growth of angel investment by encouraging and educating entrepreneurs, new angel investors and angel groups.
- Ensure the ongoing industry success by developing an industry strategy, providing education and encouraging collaboration among its members.
Angel Resource Institute
The Angel Resource Institute, (ARI) is a non-profit organization focused on providing information on best practices and educational information related to the field of angel investing. ARI’s programs include educational workshops and seminars, research projects and reports, and information about angel investing for the general public. Their programs are available to those interested in the early-stage capital including investors, entrepreneurs, policy makers, entrepreneurial support professionals, and many others.
Australian Association of Angel Investors
The Australian Association of Angel Investors, (AAAI) is a not for profit company which serves as the national voice of the early stage investment community. Their objective is to provide a platform for the growth of the early stage investment capabilities of Australia. They provide information and resources, a platform for collaboration and internationally recognized professional development programs to the countries angel investors and entrepreneurs. AAAI also advocates on behalf of the participants in the entrepreneurial ecosystem to shape policy and uphold professional standards.
Business Angels Europe
Business Angels Europe, (BAE) is the European Confederation of Angel Investing. It represents the European Business Angels’ Federations and Trade Associations. Its objective is to bring together the most active and developed countries operating in the angel markets in Europe and serve as the voice of angel investing on the continent.
Council for Economic Development
Membership of the CED includes a wide range of startup companies, maturing entrepreneurial companies, corporate partners, investors, academics, service providers, and individuals interested in entrepreneurship. The organization, located in the North Carolina Research Triangle provides education, mentoring and capital formation resources to new and existing high-growth entrepreneurs.
European Business Angel Network
European Business Angel Network, (EBAN) fuels innovation and growth throughout EMEA. Representing the early stage investor community, EBAN membership includes over 145 member organizations from 46 countries throughout Europe, the Middle East and Africa. Their members include angel networks, early stage venture capital and seed funds, electronic funding platforms, individual angels, crowdfunding platforms and accelerators.
Launch Tennessee
Launch Tennessee, (LaunchTN) is a public-private partnership focused on supporting the development of high-growth companies in Tennessee. Their objective is to make Tennessee the No. 1 place in the Southeast to start and grow a business. LaunchTN is funded in part under an agreement with the State of Tennessee.
National Angel Capital Association
National Angel Capital Association, (ACO) was established as a non-profit in 2002 to promote and support the creation of a vibrant Angel community in Canada. The ACO provides Angel investors with a secure environment to network and collaborate.
ACO has more than 2,000 members across Canada. Their members are a diverse group of individual investors, Angel groups, and other industry partners that provide support to early-stage companies.
Pipeline Fellowship
Pipeline Fellowship is an angel investing bootcamp for women which works to increase the diversity in the U.S. angel investing community and create capital for female social entrepreneurs. Launched in NYC in April of 2011, the Pipeline Fellowship has expanded from NYC to Atlanta, Austin, Boston, Chicago, Los Angeles, Miami, San Francisco, Seattle, and Washington, D.C.
Wisconsin Angel Network
The Wisconsin Angel Network (WAN) fuels the growth of capital in Wisconsin by operating as an umbrella organization providing services and resources to the early stage investing and entrepreneurial communities. It is part of the Wisconsin Technology Council’s overall economic development and job creation efforts. WAN is a Wisconsin public-private initiative operated by the Technology Council.
Several of these Angel Funds and Networks are spotlighted on our FundingSage Startup Investor Spotlight. Learn more about potential Angel and VC investors there!
Angel Funds and Networks
10x Ventures
37 Angels
3C Capital (RAIN FUND NETWORK)
460 Angels
Acorn Angels
Active Angels
Advising Angels
Aggie Angels Network
AIM – Auburn Angel Network
AIM – Central Alabama (Birmingham) Angel Network
AIM – Central Gulf Coast Investor Network
AIM – Gulf Coast Angel Network
AIM – Shoals Angel Network
Akron ARCH Angels (Akron Regional Change Angels)
Alliance of Angels
Amplifier Capital
Angel Capital Group
Angel Investment Forum
Angel Investor Forum
Angel Venture Forum
Angels Corner
Angels’ Forum
Angels on the Water
Angelvision Investors LLC
Anges Quebec
ARC Angel Fund
ArcView Angel Network
Ariel Southeast Angel Partners
Arizona Tech Investos
Astia Angels – NYC
Astia Angels – San Francisco
Atlanta Technology Angels
Baltimore Angels
Band of Angels
Baylor Angel Network
BC Angel Forum
Beacon Angels
BELLE Capital
BELLE Michigan LP
Bellingham Angel Investors BAI)
Ben Franklin Central / North Angels
Billiken Angels
Biltmore Angel Group
Bit Angels
Blu Venture Investors
Blue Water Angels
Bluegrass Angels
Bluestem Ventures
BlueTree Allied Angels
Boston Harbor Angels
Boynton Angels
Brightspark
Brightstar Wisconson Foundation
Broadway Angels
Buffalo Angel Network
Capital Community Angels
Catalyst Fund, LLC
Centennial Investors
Central Florida Technology Ventures
Central Illinois Angels
Central Texas Angel Network
CEO Ventures
Charleston Angel Partners
Chattanooga Renaissance Fund
Chemical Angel Network
Cherrystone Angel Group
Clean Energy Venture Group
Coachella Valley Angels
Common Angels
Core Network
Cornerstone Angels
Cowtown Angels
Crossroads Venture Group
CTEK Angels
Delaware Crossing Investor Group
Desert Angels
Dingman Center Angels
East Central Ohio Tech Angels
Eastern New York Angels
eCoast Angels
ECS Angels
Element 8 Angels – (Formerly Northwest Energy Angels)
Empire Angels
Enterprise Angel Group LLC
Excelerate Health Ventures
Executive Forum Angels
Family Media Angels
First Angel Network
First Angels
Florida Angel Investors
Fort Point Angels
Frontier Angel Fund
FSI Angel Network
Full Stack
Georgia Angel Network
Go Beyond Network
Golden Angels Investors
Golden Seeds LLC
Golden Triangle Angel Network
Gopher Angels
Grand Angels
Granite State Angels
Great Lakes Angels
Hawaii Angels
Hulumni Angels
HealthTech Capital
Heartland Angels
Hivers and Strivers
Houston Angel Network
Hub Angels
Hyde Park Angel Network
iGan Partners
Ignition Point Capital Group
Impact Angel Group
Inception Micro Angel Fund
Innovation Works
Investors Circle
Irish Angels
Jumpstart New Jersey Angel Network
K Street Capital
Kiretsu Forum
Lancaster Angel Group
Landmark Angels
LaunchBox Digital
Launchpad Venture Group
Life Science Angels
Long Island Angel Network
Louisiana Angel Network
Louisville Enterprise Angels
Main Street Venture Fund
Maine Angels
Maple Leaf Angels
Marquette University Golden Angels
Mass Medical Angels
Maverick Angels
Maximize Angel Investments
Merced Angels
Michigan Angel Fund
Mid Atlantic Angel Network
Mid-America Angels
Mid-Atlantic Bio Angels
Midwest Venture Alliance
Mississippi Angel Network
Myeloma Angels
Nashville Capital Network
NCIC Capital Fund
Nebraska Angels
New Dominion Angels
New Mexico Angels Inc
New Richmond Ventures
New World Angels
New York Angels
Newfoundland& Labador Angel Network
NJIT Highlander Angel Network
NO/LA Angel Network
North Coast Angel Fund
North Country Angles
North Dallas Investment Group
North Texas Angel Network
Northeast Angels
Northern Michigan Angels
Northern Ontario Angels
NueCura
Ocean State Angels
Ohio TechAngels
Oregon Angel Fund
P3 Alliance (Purdue Angel Network)
Pasadena Angels
Phenomenelle Angels
Piedmont Angel Network
Pine to Prairie Fund
Pipeline Fellowship
Pittsburgh Equity Partners
Plains Angels
Point Positive Inc
Puget Sound Venture Club
Queen City Angels
RAIN Source Capital
REES Capital LLC
River Valley Investors
Robin Hood Ventures
Rochester Angel Network
Rockies Venture Club
RTP Capital Associates
Sacramento Angels
SAGE – Shasta Angel Group for Entrepreneurs
Salt Lake Life Science Angels
San Joaquin Angels
Sand Hill Angels
Sand Hill Angels LLC
Saskatchewan Capital Network
Seed Capital Fund of CNY
Seedstep Angels
Seraph Capital Forum
SF Angels
Show Me Angels
SideCar Angels
Sierra Angels
Silicon Pastures
SLO Seed Ventures
SNK Investments
SoundBoard Angel Fund
South Coast Angel Fund
Southern Willamette Angel Network
Southwestern Ontario Angel Group
Space Angels Network
St Louis Arch Angels
Stanislaus-Merced Angels
Stateline Angels
Sustainable Local Food Investment Group
Tacoma Angel Network
Tamiami Angel Fund
Tech Coast Angels
Tech Coast Angels
Tech Coast Angels
Tech Coast Angels
Technology Concept Fund, LLC
Texoma Angels
The Angel Food Network
The ArcView Angel Network
The JumpFund
Third Coast Angels
Thunderbird Angel Network
TiE Angels – Boston
TiE Angels – Silicon Valley
Topstone Angels
Triangle Angel Partners
Tribe of Angels
Tribeca Angels
Tri-State Private Investors Network
TriState Ventures
Twin Cities Angels
Tyler Texas Angel Network
Upstate Carolina Angel Network
Urbana-Champaign Angel Network
US Angel Investors
Utah Angels
Valley Angel Investment Fund
Vancouver Angel Technology Network
Vegas Valley Angels
Virginia Active Angel Network
VisionTech Angels
Walnut Venture Associates
WBTangels
West Suburban Angels
West Texas Angel Network
West Virginia Angel Network
Wilmington Investor Network
WINGS – The Medical Technology Angel Group
Wisconsin Investment Partners
Wisconsin Super Angel Fund
Women’s Capital Connection
X-Squared Angels
York Angel Investors
York Angel Investors
ZINO Society
