Why shouldn't I just invest on my own?
- Angel groups provide more efficient matching of entrepreneurs and investors. Market recognition of an angel group and its particular investment focus leverages this public presence and creates a network of members to increase quality deal sourcing and comprehensive due diligence.
- Few, if any individual angels possess the skills and knowledge necessary to accurately and objectively evaluate an investment opportunity. Group evaluation allows for ‘checks and balances’ by providing multiple points of knowledge about the market, management and financial assumptions and by encouraging group members to challenge assumptions and opinions in a way not typically done by individual investors.
- New angels can learn from experience angel investors on all aspects of investing.
- The combination of potential investment dollars through collective individual investors gives greater economic power and influence, which enhances deal flow and investment-terms negotiation
- Angel groups provide the intangible values of camaraderie and sharing of common goals.