Question on “How often does 1 angel investor put $1M into a company looking to raise $1M?”

Date: Thu, Aug 4, 2011 at 2:50 PM
Subject: Question on “How often does 1 angel individual investor put $1M into a company looking to raise $1M?
To: Jeff Allen mail to:
The Chairman of the New York Angels answers the question with the short reply of “Virtually Never”.  For the full answer to the question see here;

The reason for this is called risk mitigation. That’s why the majority of finance (especially film finance) is syndicated finance with an average of between 1 to 10 angels or institutional funding sources.  Institutional is preferable if time & labor management is desired.

We can’t say it any better than the head of a New York angel investor group.

SO, if the chances of getting 1 individual to fund 100% of any project of any industry is a MYTH then why is it hard to understand that if the party seeking funds might have to market to a wide audience to attract several individuals to collectively invest in a single project. This often takes months especially if equity securities are involved for non-trading securities (I.E.  PPM’s)  Assuming party seeking equity capital actually has securities to offer.

It shouldn’t be difficult to realize since that is the way it is done.  Call it telemarketing or algorithm marketing or what ever. Films or any other industry do market to wide audiences every day using this method

Jeffrey D. Allen, CEO
US Vet-owned, DUNS-listed IR media firm
Comp consultation 4000+ finance topic blogfeed
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One thought on “Question on “How often does 1 angel investor put $1M into a company looking to raise $1M?”

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