Angels are optimistic about the climate for investments in early-stage businesses in 2007, according to a report from the Angel Capital Association (ACA).
This news follows CED's recent announcement of nine presenting companies at its Angel Investor Retreat on April 24 in Durham.
This optimism comes at the same time when angel groups reported increases in investments in 2006 over 2005, with a 23 percent increase in average total investment dollars by group and 34 percent growth in the average number of deals the groups funded.
In the Angel Group Confidence Report of North American angel group leaders, ACA found that angel groups forecast that the quantity and quality of entrepreneurial investment proposals will increase in 2007, that more than 80 percent of groups will continue investing in seed and early stage companies, that there is a strengthened opportunity for more positive exits, and more plans to co-invest with other sources of capital.
Not only do the angel organizations expect deal flow to improve, but they expect investment activity to continue at the same level or increase somewhat this year over 2006. As the National Dialogue on Entrepreneurship summarized, the ACA report found that almost all angel group leaders (96.5 percent) predicted that their group would invest in a new company in 2007—with 77 percent planning to invest in three to nine companies. Five percent think they will invest in ten or more companies.