“Firms selected by angel groups get a tremendous boost: For one study, Lerner and Schoar accessed the records of two of the biggest angel groups in the country, Tech Coast Angels in Southern California and CommonAngels (now called Converge Venture Partners) in Boston. The researchers compared companies that won funding from these angel groups with very similar companies that applied for funding but were denied. The results: funded firms were 20-25% more likely to survive for four years. Funded firms were 16%-19% more likely to have grown to 75-plus employees or achieved a successful exit during the study period. On average, funded firms had 16 to 20 more employees. And they were 10-17% more likely to have a successful exit.”
For the actual HBS/Sloan report, click here.