UniversityAngels expects to add Web sites for 75 more universities by year's end. The idea seeks to capitalize on two trends. Emboldened by the success stories of Internet entrepreneurs, more people are striking out on their own to start businesses. Investment angels are playing an increasingly important role in launching startups. Professional venture capitalists instead are focusing on more mature businesses, combing the market their second or third round of financing.
Angels are the answer for most entrepreneurs.
Investment angels tend to be parochial. They keep their money in small businesses close to home largely because of their local knowledge and easy access to the information needed to review business plans. There is a great community feeling built into universities. We think people will feel more comfortable investing in a company run by a graduate from the same school than a company that might be 50 miles from their house. Colleges are a natural place to look for potential breakthroughs.