Angels Invest More Money in More Startups than VCs in 2005

This post via Don Dodge is very interesting. Apparently Angels are investing more than VCs:

Angel investors invested $23.1B in 49,500 companies in 2005, according to the annual report from The Center for Venture Research at the University of New Hampshire.

If you break down their average investement its also becomes more interesting:

Angels invest, on average, smaller amounts ($467K) vs. ($7.5M) but invest in far more companies; 49,500 versus 2,939. Angels are the principal investors in early stage seed round investments.

Considering many Web 2.0 companies are being started for less than $50k this number might actually grow.

http://www.feedblog.org/2006/04/angels_invest_m.html