Average Angel Investment is $10,000

by Sam on October 27, 2008

I have been doing a bunch of traveling lately but hope to make more substantial posts soon…

In the interim, I thought these facts on angel investing from Entrepreneurship Professor Scott Shane were enlightening:

Prof. Shane notes that only 21% of angels meet the Securities and Exchange Commission’s requirements for being an “accredited investorâ€� – or an individual making $250,000 annually or more, or a couple making $350,000 or more (or net worth of more than $1 million). What’s more, the majority of angels don’t end up making money on their investments, and only 2% of businesses they invest in eventually become IPOs. And only 15% of angels do “extensiveâ€� research on the sectors of the businesses they fund.

The median angel investment is around $10,000, Prof. Shane finds.

-Via the Wall Street Journal

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  • http://ryanagraves.com/ ryangraves

    Sam- really dig you blog. I just subscribed too. Love to chat sometime about what your plans are for post bschool. Hope to talk soon.

  • http://www.leveragingideas.com Sam Huleatt

    Thanks Ryan!…love to chat anytime…I finished up BSchool last year.
    Glad you like!

  • http://ryanagraves.com/ ryangraves

    Sam – shoot me an email and we'll set something up
    graves.ryan [at] gmail.com

  • http://www.facebook.com/people/Roger_Hamilton/834545410 Roger Hamilton

    Great post ! Enjoyed reading it. Thanks for sharing.

  • http://www.pedatabase.com Private Equity

    I do think it's true that many angels don't always fully know know what they're getting into, however for the start-up it can be a great source of initial funding.

  • http://www.pedatabase.com Private Equity

    I do think it's true that many angels don't always fully know know what they're getting into, however for the start-up it can be a great source of initial funding.