Results of ACA survey provide positive outlook for future angel investment

COVID-19 won’t stop most angel investors — though they likely will rethink strategies for growing their portfolios, according to a survey conducted by the Angel Capital Association. Key findings from more than 50 angel groups across the country that responded are:

  • Overall, angel groups (71 percent) plan on continuing to invest although level of investment might decline;
  • More than 60 percent were still interested in funding a new start-up company; only 32 percent said their interest has diminished;
  • Support for additional investment in their existing portfolio companies was strong at 81 percent;
  • Eighty-six percent of the portfolio companies represented by respondents applied for “Coronavirus Aid, Relief, and Economic Security (CARES) Act” funding, which includes the “Paycheck Protection Program,” with many reaching out to their investors for guidance and support; and
  • Eighty-eight percent of portfolio companies see potential growth opportunities during the crisis.

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