The Positive Impact of Angel Investors

They are not called "angel" financiers for nothing. In a new study, scholars William Kerr, Josh Lerner, and Antoinette Schoar find that angel funding is positively correlated with "higher survival, additional fundraising outside the angel group, and faster growth measured through growth in Web site traffic. The improvements typically range between 30 percent and 50 percent."

- Harvard Business School Working Knowledge