Start-Up Financing 79 angel investors who were participants in the ACA made 947 investments in 512 companies, providing $228.8 million to start-up ventures. The ACA member survey provides the basic demographics of its angel groups, reporting that: · The average angel group invests in 3.8 companies. · The average angel group investment is $241,528 per round. · The median age of a group is three years. · The average age of the investors in the group is 47. · The average size of a group is 47.6 members, with a median of 37 members. With that said, the ACA estimates that 17.5 percent of angel group mem- bers invest individually in each deal that is done as a group. More than 50 angel groups have formed nationwide as private, seed-round investing has begun to regain its popularity. Angels have a greater tendency to be drawn by the po- tential equity returns of funding new technology companies. As of the end of 2010, more than a million accredited angels have a total of $20 billion invested in more than 30,000 technology start-ups. Finding an Angel While you can find individual angels through referral from an accountant or attorney, angels are increasingly participating in a variety of networks. Nonprofit angel networks. There are more than 50 loose-knit organi- zations nationwide through which investors learn about opportunities, at- tend programs on investing, and develop a sense of community. These networks are usually run by nonprofit entities, have tax-exempt status, and are oriented toward economic development. The greatest benefits come from community building among investors and creating a more efficient marketplace in which entrepreneurs can approach sources of capital. Pledge funds. A more recent phenomenon involves pools of funds in which investors (anywhere from a handful to dozens) pledge a specific amount of money, to be invested in private equity transactions that are selected and managed by the group. Sometimes the group has a central- ized paid staff; sometimes it is led and organized by a lead investor. These groups set legally rigorous standards, are focused, and are designed to profit from multiple transactions. American Management Association www.amanet.org