Today’s Economy Creates Ideal Opportunities for Angel Investors

With the economy in America making strides toward a rebound, business angels are taking advantage of this prime investment period. Bank interest rates in the U.S. are currently at less than 1% and inflation is twice that much. Instead of losing money in these institutions, business angels are finding they have a better chance of seeing their money grow by investing in start-up businesses with potential.

In the mid 2000s, any business entrepreneur with a half-baked scheme tried to sell their idea for a hefty price tag. But since the recession, entrepreneurs have become more humble and investors more frugal. Nowadays business entrepreneurs are less likely to inflate projections or be unclear about their value propositions as the last thing they want to do is scare off potential investors.  Both sides are being more careful, but the ideas are still there.

If entrepreneurs are honest, business angels are more eager to wait for returns, as they know investments will eventually generate cash in correlation with the economy’s recovery.  And even despite economic climate, there are some sectors which currently exceed projections.  So investors are looking to find that niche, and investing now is also a good idea for them because base costs remain low. While these long-term investments play out, economists are noting that an increasing number of business angels are looking for smaller companies and silent business partners to invest with. Although these smaller, short-term opportunities will never expand into enormous enterprises, they will at least offer good returns in the interim.  Economists say that business angels are making the most of the country’s current financial situation, creating opportunities as the economy makes its ascent.

Angel investors can connect with entrepreneurs in the US via sites such as the Angel Investment Network, who operate across the US, including in the MidWest, Northeast and both coasts.  They also have branches all around the world, so your idea might find potential angel investors anywhere in the world.