David Rose is the founder of New York Angels .
He had some highlights on Angels and Angel investing in the US –
- There are 600,000 new companies started each year in the US. Of those 350,000 are self-funded, 200,000 are funded by friends and family, 50,000 by Angel investors, and a mere 1,200 by venture capitalists.
- involved with and/or started on average 2.7 ventures.
- To be an accredited investor you must have + $1,000,000. in net assets and have made $200,000 revenue annually for the past 2 years.
- The average Angel investor has spent 9 years investing, had done 10 investments, had 2 exits (profitable or lost their money), and 10% of their wealth is tied up in Angel investments.
- Angels look for companies with Scalable Business Models, an “Unfair Advantage,” a Great Entrepreneur, External Validation, Low Investment Requirement, Reasonable Valuation ($1 to $3 million pre-money range), and a 10 times or higher return on their investment within 5 to 7 years.
- The most important characteristics an Angel investor looks for in an Entrepreneur is Integrity, Highly Competent, Experience, Knowledge, Skill, Leadership, Commitment, Vision, Realism, Passion and Coachability
Further Angel & Angel Group Insights
Angel investors are affluent individuals who provide money and access to expertise to start-up companies in exchange for equity, repayment with interest or the option to buy stock later at a reduced rate. Unlike venture capitalists who manage the pooled money of others, Angels generally invest their own funds. Angel groups, which typically have about 50 members offer a social network for individual investors, holding regular events at which carefully screened companies give presentations and request money.
From recent industry reports such as the Angel Funders Report published by the Angel Capital Association and national data compiled by the National Angel Capital Organization, the following statistics highlight the current nature of angel investing:
- Angel groups continue to invest primarily at the earliest stages. A majority of angel investors focus on pre-seed, seed, and early-stage companies, with many groups concentrating their capital at the earliest stages of company formation where venture capital participation is still limited.
- Angel groups typically invest across multiple companies each year. In Canada, for example, angel organizations reported 501 investments in 2024, with the mean investment per company around $315,000 and median investments roughly $129,000.
- Angels frequently invest both individually and through syndicates. Many angel groups operate hybrid models where members may choose to invest directly alongside pooled funds, allowing individuals to decide which deals they participate in.
- Angel investors continue to focus on high-growth sectors. Popular areas for investment include software, artificial intelligence, fintech, health technology, biotechnology, and cleantech, with climate technology alone accounting for roughly 11% of angel investments in 2024.
- While many angels prefer to support companies within their own region, investors increasingly prioritize strong teams, scalable opportunities, and sector expertise over geographic proximity as deal sourcing becomes more global and digital.
- Angel investors remain highly selective. Angel groups often review hundreds of startups each year but invest in only a small fraction, reflecting the high level of due diligence required for early-stage opportunities.
- Angel investing remains a high-risk activity. Only a small percentage of angel investments ultimately result in successful exits through mergers, acquisitions, or initial public offerings, while many early-stage startups fail or return limited capital.
- Angel groups continue to grow and evolve. Organizations such as the Angel Capital Association now represent over 14,000 accredited investors across more than 250 angel groups, demonstrating the expanding role of angels in the startup ecosystem.
- Market conditions have fluctuated in recent years. Some angel groups reduced investment activity during the 2023–2024 startup funding slowdown, but angels have remained an important stabilizing source of early-stage capital when venture funding declines.
- Overall, angel investing continues to play a critical role in the entrepreneurial ecosystem, providing early capital, mentorship, and industry connections that help startups reach the stage where venture capital and institutional funding become possible.