The Average Angel Investment Amount Is Less Than You Think

I have been doing a bunch of traveling lately but hope to make more substantial posts soon…

In the interim, I thought these facts on angel investing from Entrepreneurship Professor Scott Shane were enlightening:

Prof. Shane notes that only 21% of angels meet the Securities and Exchange Commission’s requirements for being an “accredited investorâ€� – or an individual making $250,000 annually or more, or a couple making $350,000 or more (or net worth of more than $1 million). What’s more, the majority of angels don’t end up making money on their investments, and only 2% of businesses they invest in eventually become IPOs. And only 15% of angels do “extensiveâ€� research on the sectors of the businesses they fund.

The median angel investment is around $10,000, Prof. Shane finds.

-Via the Wall Street Journal

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