Many angels prefer to have opportunities referred to them from people they know. That’s not because they’re elitist or obnoxious, but because experience has shown that the odds favor ventures where a known, trusted entity has done the preliminary vetting.
The best investors will tell you that the majority of their investments are sourced from the personal networks they have cultivated over the course of their careers.
Angel Investing by David S. Rose
Angel investing has exploded during the past decade, channeling over $20 billion annually into startup companies in the U.S. alone. But until now it has been a niche activity—a way for power-players and risk-lovers to place exciting, high-stakes bets on promising new ventures. Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups is the first book of its kind to discuss the human and financial rewards of being an angel investor, the benefits of joining an angel group, and the crowdfunding revolution that is bringing early-stage investing to millions of new participants. Investors looking for a powerful new asset class will find Angel Investing a valuable and comprehensive resource.