Editor's Note

 

By Alan Hall

 

Despite the vital contribution to the economy and large amount of attention surrounding venture capital funds, only about 1 percent of all companies in the United States actually receive VC funding. The great majority of businesses simply do not fit the VC model. VCs invest other peoples' money and are beholden to certain practices and obligations limiting the types of companies and stages of existence in which they can invest.

On the other hand, angel investors are typically wealthy individuals who invest their own money. They can operate under different conditions than VCs and have autonomy to invest in a wider variety of companies with business plans that do not necessarily fit a VC timeline of exit or rate of return.

Angel investors are the unsung heroes of U.S. business. Angels invest in 10 times as many companies as VCs do, making a huge difference in the landscape of our economy and are an indispensable resource to startups. In 2005, angel investors invested about $23 billion in U.S. companies.

Here in Utah, we are entering a golden age for angel investing. Just a few short years ago, there was only one organized angel group and a handful of scattered individual investors. Today, there are five active angel groups from Logan to St. George and hundreds of individual investors. Thanks to FundingUniverse.com, many of these angels have a place to congregate and find promising companies worthy of investment.

In this issue of Launch, we take a look at the current angel environment and give you some tips on how to attract angel investors in your company.

I invite you to visit www.growutahventures.com for more information on fundraising in general and a list of active angel groups in the state.

 

Launch - Mar/Apr 2007

 

 

The full "digital magazine" version of Mar/Apr 2007 is currently unavailable.