While full data for 2008 investments are not yet in, the picture from the latest Angel Group Confidence Report is that total angel group investments in North America are estimated to decrease by at least ten percent from 2007. Angel groups appear to be focusing more on a few potential winners. The top reason for the decrease was uncertainty in the market, followed closely by a loss in member wealth. Despite the downturn, three-quarters of those surveyed expect the number of investing opportunities to increase in the coming year and roughly half are still optimistic that overall investments will increase. So how do they plan to adjust to the current economic climate? Forty seven percent plan to increase their co-investment activities with other angel groups and 33 percent will increase co-investment activities with other equity investors such as early-stage venture capital firms or individual angels.
-Source (National Dialogue on Entrepreneurship)
…This means that entreprenerus really need to allow as much time as possible to raise funds in 2009. Maybe this is obvious, but syndicating a round always takes longer to organize and close with multiple parties. It also leads me to belive that finding the *right* angel with 1) a track record and 2) the right social leverage will be more important than ever in order to attract a syndicate most expediently.
