The VPC Blog: Where Did Angel Investing Originate?

If you are like me you, you are curious about how things originated or made. Do you find yourself asking questions like – How did they do that? Where did it all begin? If you like me asked the question – Where did angel investing begin? when you first heard the term, please keep reading.

The term “angel” investing originated from Broadway where it was used to describe wealth individuals that provided financial support to theatrical productions. In 1978, William Wetzel a professor and founder of Center for Venture Research at the University of New Hampshire championed the first study on how entrepreneurs raised seed capital in the US during which he started to use the term “angel” to describe the initial investors.  Now the term patron is used to describe those that support the arts.

Today angel investors are affluent individuals looking to diversify their portfolio and use their own funds to provide capital to startups typically in exchange for equity or convertible debt. Private investment gives support to startup in the early stage of the company with the goal of high returns, however, the investment does come with a high risk of failing.  Angel investing continues to grow each year with an increasing number of angel investors accessing deals, sharing knowledge and capital through online platforms, angel groups and angel networks enabling investors to make more informed decisions to maximize overall returns.

Have questions about angel investing? Ask it here! Our community of angel investors and founders would be happy to answer in future posts.