A Center for Venture Research at the University of New Hampshire study shows that angel investment fell to US$9.1 billion in the first half of 2009, a 27 percent fall from the same period last year.
However, the number of companies getting venture investments actually increased 6 percent to 24,500.
Angels are still financing deals, but at lower valuations and with more specific milestones. They have grown more picky and less tolerant of risk.
“What you’re seeing now is a real flight to quality,” said David S. Rose, chairman of New York Angels. “If you are the real deal, you can get funded.”
Source: New York Times
