Angels Still Actively Stimulating The Economy
Funding for just a few entrepreneurs would mean that only a few companies have the chance of
emerging onto the business circle. Although, lesser capital may reduce the survival chances of a
business venture, it does not mean such a business cannot succeed. There is a high level of
unemployment and governments all over the world have introduced fresh funds running into trillions
of dollars into their economies search engines as stimulus to get things back on a solid footing.
Hence, it is welcome news that angels are still putting in the level of investments that make some of
these new business ventures possible.
It is a commonly held belief that angel investment generally reduces during the period of an
economic recession. The reasons behind this idea is not far-fetched as it is believed that when there
is a crash in the market, angels that would have otherwise been interested in investing in business
ventures become a little more cautious with their funds as a result of bad economy.
For instance, a report from New Hampshire Center for Venture Research indicates that the level of
angel investments went down by as much as 2.9% in year 2008. However left between a choice of
better funding for a lesser number of entrepreneurs and sites to search at insufficient capital
funding for a larger number of entrepreneurs, the second option is probably a better idea. In some
instances great companies have risen far above the limitations of little capital to become thriving
business concerns. However, it is quite instructive to note that there was also still some level of
activities by angel investors.
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More new business ventures translate into new jobs, new stimulus for the economy and an increase
in the general standard of living. This figure was done in comparison with the level of deals done by
angels in 2007. This is usually as a result of the entrepreneurs going back to the drawing board and
evolving new strategies that would make their business run better on the amount of capital funding
available to them.
In recent times the economy has being embroiled in a dire financial crisis unlike any other since the
period of the Great Depression. In order to get a proper picture of this analysis, it is necessary to
also consider the rate of angel deals done in 2009 where the level of investments further reduced
from that of 2008.
This is in opposition to best search sites the
view of business analysts that the state of
the world economy would dry up the
channels for seed capital investment in
business ventures, although angel
investment was down by as much as 25%
and a larger number of new entrepreneurs
were probably not able to raise as much
capital as they expected for their business
ideas, the level of angel investment was still
significant enough to help in oiling the
wheels of the business circuit.