The Myth of the Active Investor

After examining "the cream of the crop of angel investors," Professor Rob Wiltbank found that they spent, on average, just 42 minutes per week actively dealing with the companies they funded.

Most people think that angels are active investors in start-ups, which is understandable given the description of angel investing that is provided in most books and articles. While some angels are active investors, many are not.

Professor Rob Wiltbank of Willamette University studied accredited angel investors involved with organized angel groups – people who had an average net worth of $10.9 million, had founded an average of 2.7 companies, and had averaged 14.5 years as an entrepreneur. That is, Professor Wiltbank studied the cream of the crop of angel investors.

By Scott Shane

Full Story: http://www.smallbiztrends.com/2008/12/the-myth-of-the-active-investor.html/