Friday, September 25, 2015

New Math For High Growth Companies Requires Angel Syndication

If you’re an angel investor and aren’t yet well-versed in syndication, now is the time to take notice. The changing math required to fund promising companies explains why: the median deal size for angel groups in 2014 was $800,000 (according to the Halo Report) and the average angel group invested $250,000 (per the Angel Capital Association). Finding ways to plug this $550,000 funding gap explains why a new Halo Report also reported that about 70 percent of angel group deals in the last five quarters were syndicated between multiple angel groups and other investors such as individual angels, venture capitalists, family offices and private equity. These facts represent a shift in angel investing. Syndication is the solution funding high growth companies.

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