Posted tagged ‘Center for Venture Research’

Angel Investors say, “Out with the Old, in with the New.”

November 20, 2008

In 2007 the angel investment market experienced a growth in investment activity, according to the Center for Venture Research. However, it is noted that angel investors are taking a more cautious approach to investing. But a cautious approach does not necessarily mean that investors are not looking for the “new.” According to the CVR, investors have a preference for new rather than follow-on investments.

So when Bruce Johnson released Semanti, a search tool that sets on top of Google to enhance and personalize the searching process, angel investors took notice. It was the dream angel investor scenario. After all, larger corporations such as Google are already a favorite of angels by providing them with a sense of stability. And Semanti brought out the new that so many angels are seeking. But what does new really mean?

It has been common in the past for angel investors to remain fairly close to their investments in order to maintain a hands on approach in the decision making process. But with all the innovations coming out of Edmonton, angels are beginning to realize that being close to their investment is nothing more than an “old” theory that now no longer applies.

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