Foothills Angels

The Angel Capital Association just released a report suggesting that angel investing levels have dropped this year about 10% from last year. This news is not surprising given the overall economic situation that has developed throughout 2008. It's probably safe to assume this trend will continue into 2009. We've noticed locally a decline in not only angel investment activity, but also a drop in the number of entrepreneurs looking for both angel and venture capital. I suspect several "wannabe" entrepreneurs are probably looking at the current economic climate and choosing to stick with "safe" existing jobs and the regular paychecks and benefits that go with them. However, there is plenty of venture and angel capital out there waiting for the right deals to come along. As you would expect, valuations in the private equity space are feeling the same pressure that public company valuations are seeing. So, if you are an entrepreneur looking to raise money, fear not, there is money available, but be ready to face a tougher valuation discussion and a higher bar to get funded!

Here's the link to the ACA press release