What are angel groups?
In an angel group, individual angels join with other angels to invest collectively in entrepreneurial firms. Angel organizations come in many forms, but all have certain characteristics: • They meet regularly to review business proposals • Selected entrepreneurs make presentations to the membership of the group • Member angels decide whether to invest in the presenting business • Angels work together to conduct due diligence to validate the plans, statements and history of the entrepreneurial team Other points of interest about angel groups are: • The size of angel group investments in entrepreneurial firms varies widely. A survey of member organizations of our companion organization, the Angel Capital Association, found that the median investment per round per angel group in 2008 was about $277,000. Many angel groups co-invest with other angel groups, individual angels and early-stage venture capitalists to make investments of $500,000 to $2 million per round. • Groups invest in innov
