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Taking Flight

Angel investors are flocking together to your advantage.

This story appears in the October 2004 issue of Entrepreneur. Subscribe »

After weathering tough economic times alone, angel investors are banding together and joining angel groups or funds that can help them screen deals and mentor entrepreneurs. They also have a national association the Angel Capital Association (ACA), which has 30 member groups. Sponsored in part by the Ewing Marion Kauffman Foundation of Kansas City, Missouri, the ACA is compiling data and best practices from, and about, angel investors.

According to the informal results of a survey of the ACA's member groups, each group put an average of $1.85 million into an average of 5.3 investments annually. The average member group is made up of about 50 individual angels, so this translates to an investment of $36,803 per angel, per year. If you're lucky enough to be invited by a group to present at its meeting, expect to be one of two or three presenters, each given 10 to 30 minutes to showcase an investment opportunity. Speak loudly, as most groups mix presentations with a meal-more than half of those that responded meet for breakfast or dinner.

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