With a growing stake in the success of local entrepreneurs, state officials are boosting efforts to encourage angel investing in startups, according to a report by the National Governors' Association Center for Best Practices.
Among other strategies, this includes creating seminars on private equity investment, connecting entrepreneurs with existing educational opportunities, forming statewide angel networks, and appointing angel investors to state economic advisory boards, the report said.
Angel investing in entrepreneurial ventures can range anywhere from $5,000 to $100,000, with investors typically backing new medical devices, software, biotechnology, business services, IT and energy initiatives.
According to the Kauffman Foundation, a Kansas City, Mo.-based entrepreneurship advocacy group, angel investors are responsible for as much as 90 percent of all early-stage funding in the United States. By contrast, early-stage venture capital funding has dropped by roughly 20 percent in the past ten years.