Like an angel from the heavens, an “angel” investor is a person or group that provides funding for various reasons. Usually, the reason is to invest in a small start-up company, and the funds are usually traded for a stake in the company. As start-up companies become more and more popular, angel investors have begun to work together in associations and organizations in order to collect all of their funds together and share the profits from their investments. Currently, there are hundreds, if not thousands, of angel investors. The following is a rundown of the 5 largest angel investor groups in the United States, according to the Angel Capital Association. In essence, it is part philanthropy and part business.
Ohio TechAngel Funds
The Ohio TechAngels is a collection of various independent investors who have chosen to pool their money together in order to invest in more groups and hopefully make more profit in the process. Currently, the Ohio TechAngels have 282 individual companies that they have invested in. As the name implies, all of the investors live in the state of Ohio, but they donate to people and companies throughout the country, although their primary focus is on the Ohio and Rustbelt areas of the United States of America.
Tech Coast Angels
Based in Los Angeles, California, the Tech Coast Angels have invested in 263 start-up companies. The firm specializes in building networks for their investments as well as mentoring, business modeling and other assistance. The Tech Coast Angels prefer investing in start-up businesses in the sectors of tech, biotech, consumer products, Internet, information technology, life sciences, media, software and environmental markets.
This angel donor group consists of angel investors that all live in the San Francisco, California area- which is near the tech industry capitol of the world. So far, Investor’s Circle has invested nearly $150 million in more than 225 companies throughout the nation. Unlike other angel investor associations, Investor’s Circle sticks to only investing in start-up companies and entrepreneurs that specialize in and focus on social and environmental issues and concerns in particular.
Golden Seeds, LLC.
This New York conglomerate currently funds 190 start-up businesses. This group is another niche one that focuses on businesses that have been created and ran by women. Members of Golden Seeds contribute their funds directly into a management account. The primary sectors that Golden Seeds, LLC. focuses on include the industries of consumer products, technology, software and life sciences.
North Coast Angel Fund
Ohio seems like a popular spot for angel investors, because North Coast Angel Found is from Ohio as well. This group focuses only on start-ups in the state of Ohio. This is primarily because the state has experienced particularly troubled times due to the recession of 2008. The North Coast Angel Fund hopes to stoke entrepreneurs in the area to start innovating the small business climate in Ohio, and thus kick start the state’s recovery from the recession and bring more jobs and money into the state.