Angel investments are on the rise in New York City, giving more hope to entrepreneurs seeking to launch an LLC in the Big Apple. The New York Angels is one investment group that has grown dramatically in the last several years, from 30 investors in 2004 to 75 in 2010.
The emergence of angel investors can be attributed to a number of trends occurring in New York right now. One is a resurgence of technology companies along with a new generation of entrepreneurs to back them.
The recent economic collapse has also created something of a backlash against Wall Street, with many former stock market investors opting for stakes in alternative ventures such as tech startups. "The stock market to me is untrustworthy," said Michael Yavonditte, an entrepreneur and angel investor to Crains New York. "The one sector still shining brightly is the tech sector. That's the sector I understand and have been successful at."
But the identity of this new generation of angel investors is shifting. With beginning stage investments from angels ranging from $25,000 to $1 million, they are beginning to look more like venture capitalists.
"Five years ago, you wouldn't even think of funding your company with just angel investors; it would be viewed as oddball," added Yavoditte. "Now it's an acceptable approach."
Tags : incorporation news, ny
Posted: Oct 13th, 2010