Tag Archives: ANGEL GROUP

BUILDING AN ANGEL GROUP

INTRODUCTION

Angel investors often work in groups for three key reasons:

  • To access more and higher quality deal flow than can be found by working alone.
  • To reduce individual effort by dividing up the work.
  • To reduce risk by tapping into the group’s varied experience.

Group participation also allows individual investors to spread their capital across more deals, resulting in better diversification and reducing risk.

Less than 20 local angel groups have been formally established in Canada, compared with more than 300 in the U.S. While each network is uniquely designed to serve the interests of its members, these groups have many characteristics in common, such as the investment screening process, and many that vary, such as organizational structure. Four groups are Continue reading