Economic Growth Spurring More Angel Investment

Angel investment activity is picking up in the Philadelphia area after falling off because of the tech and telecom busts. Consider these developments in the philly area:

- A year-old angel group is attracting 50-plus people to its monthly meetings and at least two other angel groups are being formed.

- A $2 million fund that guarantees investments by angels has agreed to work with five groups of them and is getting ready to issue its first guarantee.

-An angel fund has received $500,000 from the state and hopes to close on at least $3 million, including the state money, next month.

The increase in angel activity, which is largely fueled by the rising stock market, isn't just confined to the region. Nationwide, angels were more active the first half of this year than they were the first half of last, according to Jeffrey E. Sohl, director of the University of New Hampshire's Center for Venture Research.

Statistics for this year aren't yet available, but last year, angels made $15.7 billion in investments, according to the center. While that amount seems impressive, it's little more than half the $30 billion in investments they made in 2001, when many still were flush from the last stock market boom.

Go here to read more.