ABSTRACT
Venture capitalism has undergone revolutionary changes since the first days that it achieved recognition in the early 1950s. With respect to the US, the industry started in earnest in the 1950s and 1960s. Individual investors – business angels – were the archetypal venture investors. While this type of individual investment did not totally disappear, the modern ‘professional’ venture firm quickly emerged as the dominant venture investment vehicle. This trend has reversed in the last few years, with individuals once again becoming a potent force and increasingly taking a larger role in the early stage/start-up parts of the venture life cycle. These ‘angel investors’ will mentor a company and provide needed capital and expertise to help develop companies. Angel investors may either be wealthy people with management expertise or retired businessmen and women who seek the opportunity for first-hand business development.1
