Angel Investing Now

IMO, there is both good news and bad news for Angels investing in the current economic environment. The bad news is, of course, that start-ups, like all businesses, struggle ecen harder to make sales. And future capital infusions are anything but certain. But good news is plentiful. Costs are down. Quality employees are much easier to find. Office space and furniture is downright cheap. And for cleantech start-ups in particular, the Obama Administration is creating a much more supportive environment with the passage of the Stimulus Act and pending National Energy Security legislation. Valuations are down 40-50% from 2007. And some of Northwest Energy Angels deal flow now includes companies that are relatively mature compared to those we were seeing previously.  MicroGreen Polymers' technology, for example, is far more advanced relative to many of the clean technologies we saw last year. And Microgreen actually has revenue coming in the door. The largely defensive posture of VC firms may be driving less risky firms our way.  On balance, if you believe the economy will turn around in the next few years, now is a great time to invest in the right deal.