Funding & stats USA 'Angel Groups' Provide Funding Option for Business Start-Ups; says Angel Capital Association

'Angel Groups' Provide Funding Option for Business Start-Ups; Focus On Venture Capital An 'Achilles Heel' For Entrepreneurs, says Angel Capital Association: "The latest estimates from the Center for Venture Research show that angels provided $18.1 billion in start-up financing in 2003, up from $15.7 billion in 2002. The Center also estimates that there are between 250,000 and 400,000 active angel investors in the United States, with a projected 1 to 5 million potential angels.

However, as important as the angel sector is to entrepreneurs in financing their businesses, it is largely neglected by researchers.
To address this knowledge gap, ACA is working with the Kauffman Foundation to design a confidential survey of angel groups and individual angels to get insight into regular deal flow in the angel community. A secondary aspect of the research program is to gain greater understanding of the number of individual angel investors in the country, where they are located, and how much they invest, among other things.

'We've heard from many ACA members that developing a robust database is critical for the advancement of the angel field,' said Hudson. 'This data will also be helpful to entrepreneurs, policy makers and the entities that help entrepreneurs start and grow their businesses.'

The Angel Capital Association was formed in January 2004. It is the preeminent North American association of angel investor groups. ACA's mission is to advance angel investing by supporting the development of successful angel groups, sharing best practices and industry data, building public awareness, and establishing professional standards. Currently, 60 angel groups throughout the United States and Canada are members of the organization.

The Ewing Marion Kauffman Foundation of Kansas City works with partners to advance entrepreneurship in America and improve the education of children and youth. The Kauffman Foundation was established in the mid-1960s by the late entrepreneur and philanthropist Ewing Marion Kauffman. Information about the Kauffman Foundation is available at www.kauffman.org. "