More entrepreneurs turning to online angel networks

More and more entrepreneurs are turning to online business angel networks to secure funding for their businesses according to the Angel Investment Network.

The UK business angel network believes that Internet portals give entrepreneurs a quick and easy way to present their projects to a large number of investors and give investors access to a comprehensive range of business ideas and investment opportunities.

They also highlight that the process of connecting business owners and business angels online provides great opportunities for entrepreneurs based outside of large metropolitan areas and business owners who don’t have the right connections to get in contact with angels. These online networks give anyone with a great idea the chance to get the funding they need to get their business off the ground or expand.

Data from the University of New Hampshire’s Center for Venture Research shows the largest area of focus for US angel investors in the first half of 2010 was healthcare services and medical devices/equipment, accounting for 24% of investments. That was followed by biotechnology (20%), software (12%), industrial/energy (11%), retail (9%) and media (5%).

However, Mike Lebus (director of Angel Investment Network Ltd) said, “The sector where we’re getting the most funding applications at the moment is Internet & eCommerce which makes up 7.99% of all the business plans we receive. The next highest were Technology with 7.03% and Food & Beverage with 6.32%. In fact, Medical & Health Care, the area getting the most funding from angels, is right down in 9th place.”

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