Nov 12

Angel investors 3

The Center for Venture Research has also come up with 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 and invests $37,000 per venture.

· Most angels invest close to home and rarely put in more than a few hundred thousand dollars.

· 7 out of 10 investments are made within 50 miles of the investor’s home or office.

· Informal investment appears to be the largest source of external equity capital for small businesses. Nine out of 10 investments are devoted to small, mostly start-up firms with fewer than 20 employees.

· 9 out of 10 investors provide personal loans, or loan guarantees, to the firms they invest in. On average, this increases the available capital at the company in question by 57%.

· Informal investors are older, have higher incomes, and are better educated than the average citizen, yet they are rarely millionaires. They are a diverse group, displaying a wide range of personal characteristics and investment behaviors.

· Investors expect an average 26% annual return at the time they invest, and they believe that about one-third of their investments are likely to result in a substantial capital loss.

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