Who is an angel investor?
The Center for Venture Research at the University of New Hampshire which does research on angel investments has developed the following profile of angel investors: • The “average” private investor is 47 years old with an annual income of $90,000, a net worth of $750,000, is college educated, has been self employed. • Most angels invest close to home and rarely put in more than a few hundred thousand dollars. • Informal investment appears to be the largest source of external equity capital for small businesses. 9 out of 10 investments are devoted to small firms with fewer than 20 employees. • Informal investors are older, have higher incomes, and are better educated than the average citizen, yet they are not often millionaires. They are a diverse group, displaying a wide range of personal characteristics and investment behavior. • 7 out of 10 investments are made within 50 miles of the investor’s home or office. • Investors expect an average 26% annual return at the time they invest. •
