Here is a excerpt from San fernando Business Journal, that provides som good news.
“We’re seeing at least a 50 percent increase in deals choosing us over VCs for various reasons,” says John Dilts, founder and president of Maverick Angels in Westlake Village. The group has 25 members who screen and invest in companies monthly.
The economy has forced many VCs to slow their investment pace and focus on existing companies that are not able to exit their portfolios because of the shuttered IPO window and weak acquisitions market, said Mark Heesen, president of the National Venture Capital Association, in the MoneyTree Report.
While many angels remain cautious, the downturn has resulted in higher quality entrepreneurs looking for early stage capital, says Dilts. Some have raised previous rounds of capital and developed their companies to the point of generating revenue.
Company valuations have also dropped, which is an appealing point of entry for angels. “As angels we’re seeing higher quality deals and lower valuations,” says Dilts. “We fill a unique void in the emerging growth finance universe. We provide speculative capital.”
Read the full article here.
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