As if entrepreneurs needed more reason to conserve cash. On March 30 University of New Hampshire’s Center for Venture Research released its survey on angel investing. The bottom line: angel investors have tightened the purse strings.
According to the survey, total angel investing in 2008 was $19.2 billion, down 26% from 2007. While the total number of deals funded was only down 2.9% to 55,480, the average deal size was slashed 24%. That means small firms relying on angel funds need to stretch their funds further than ever. Particularly hard hit have been firms looking for capital to expand: the survey found those deals have suffered the biggest decline.
