Is Boston short of Angel Investors?

I don't have any statistics to weigh in on whether Boston has more or less angels per capita. I think the perception is a combination of two things: closed networks and old(er) money.

In my experience, most Boston angels made their money in previous revolutions of the tech cycle, so their networks usually don't extend into the next generation. Previous acquaintances and networks are far and away the way most angels find out about and consider deals (much more so than the Valley or New York), so this means that unless you're known to the community it's hard to get known to the community. Which leads to the perception that angels are scarce.

Answered 1 year ago, Edited 1 year ago by Michael Sattler

Stephen, my short answer would be "yes". That same answer would apply whether your inquiry extended to almost any city in the United States. Although there have certainly been improvements with respect to the availability of angel and early stage finance over the last several quarters, investors, even investors in angel and early stage rounds, have become significantly more conservative and focused upon the return "of" capital rather than the return "on" capital. Although my firm works with many venture stage investors, the venture finance model has significant shortcomings make investment decisions generally slow and very aggressive. I agree with Michael Sutter's comment that unless you are already known to the established angel community, finance is difficult and it is very difficult to gain entree to these circles.

Answered 1 year ago by Bob Brown