New Rules of Angel Investing
A recent New York Times article by Kermit Pattison highlights the new rules for angel investment during the current economic cycle.
Although business angels are still investing, the average deal size fell by a whopping 31% in the first half of this year. However, the costs of starting up have plummeted thanks to open source software and cheaper technology. Business angels love extreme bootstrapping entrepreneurs. The more self sufficient your start-up is the more attractive it looks to business angels.
You just have to be smart with how you apply yourself. If you can get traction then you have a great chance of getting investment to scale. You see, the key is being able to generate traction and early sales as cheaply as possible. That’s the most important skill a start-up entrepreneur can have in this economic climate.
With business angels adopting a more prudent investing style, entrepreneurs must adapt to it when seeking early stage funding.
