Angel Investor Activity on the Rise - Private Placements continue to grow

A positive data point that the bottom could be reached is that the University of New Hampshire Center for Venture Research mid-2009 report is that the numbers of angel investment have begun to rise. During the first half of 2009, angel investors funded 24,500 new businesses, 6% more than the same period in 2008.

The figures indicate that 2009 showed the birth of about 50,000 companies, all funded by investors and venture capital firms. In a Business Week article reports on November 12 Spencer Ante, that the business angel continues to rise and big ideas are still out there. "Maybe this is the best time to start a company," says Carl Schramm, president of the Kauffman Foundation, an organization that promotes entrepreneurship.

There are several reasons for this. The initial costs are low. Office space, labor and materials are cheaper and entrepreneurs weather storms like these are on a mission. This separates the "posers" by real visionaries. The weather difficult times people are the type that you want to start these new businesses and take them (and investors) dreams into reality.

Another reason is that incumbents tend to be inwardly focused competitors as they fight the daily battles tough market. This allows for start-ups to gain market share at the beginning critics.

This is fertile ground for private angel investors that can invest in these companies. These entrepreneurs see a real market need. Anyone can see a real need and fill is the secret to successful companies and investors exciting returns.

If the stock market doubles in 5 years, which is an annual growth rate of 15% on investment. Angels new adventure sees typically 20-40% yield and a little 'bigger, much bigger. This makes the world of private placement of investment portfolios with PPM and a worthy addition an important way to compensate for the losses of the past year. Be sure to look for those that are Securities and Exchange Commission (SEC) compatible with the rules.

The following table was put together by Gary Beach, publisher emeritus of CIO magazine. The table, based on the Fortune 500, indicates what percentage of the best companies were incorporated during a recession.

Based on Fortune 500

Percentage that have been incorporated into business during a recession year

Top 10 companies

70%

Top 25 companies

64%

Top 50 companies

52%

Top 100 companies

43%

Top 500 companies

36%

Percentage of years that the U.S. was in recession: 39%

Date: Gary Beach, Fortune, NBER, Wikipedia

From these data, the U.S. is in recession for 39% of its year. Among the top 10 Fortune 500 companies, 70% started in a recession. This means that almost 40% of the time the U.S. has been slow economic times, yet we continue to grow.

Giants are still made in difficult times. Based on U.S. history, the times of recession are not new.

Most angel investments range from $ 10,000 to $ 1 million. This is a game for the portfolio that invests in order to spread your bets. Not everyone is a winner. Typically, 24% end in failure, but the winners more than make up for the stragglers. This is the power of a diversified portfolio. As companies seek financing with innovation firm that provides the ability to compensate for past losses and generate enthusiastic staff .......