Angels "bake out" risk for VCs, says Angel Capital Association chair

Angel investor groups are playing an increasingly important role in funding early-stage tech companies, which requires so little money these days that it’s inefficient for venture capital firms to participate in.

"It’s become rather common for angel groups to lead $1 million and $2 million Series As," says Huston. "That’s good news for the VC community, because when they see the deal, much more of the risk has been baked out of it."

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