Angel Investors Get PickierScott Shane
The financial crisis and recession have made raising capital more difficult. This is true for the millions of owners of small businesses that rely on debt from banks, credit-card companies, and trade creditors, but it is also true for the founders of high potential businesses—those hoping to reach tens of millions of dollars in sales in five to 10 years—that are trying to raise money from business angels. Although estimates based on Federal Reserve data indicate than less than 3% of young companies raise equity from external investors, the explosive growth of some of these businesses makes them an important group seeking capital. For these companies, the increased difficulty in raising money can be seen in evaluation process, known as the deal funnel, at angel groups.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Smartphones Are Killing Americans, But Nobody’s Counting
- Why a Pub in the Middle of Nowhere Was Named the World’s Best Restaurant
- Ford to Take $267 Million Hit From Recall of F-Series Trucks
- Gulf Coast Oil Spill May Be Largest Since 2010 BP Disaster
- Racist Outburst Prompts Faber’s Exit From Three Company Boards