Angels replace venture capital funds - Globes

Angels replace venture capital funds - Globes: "Israel Technological Incubators Forum and the Fahn Kanne Grant Thornton Israel accounting firm.
Over the past decade, links in the feeder chain for early stage technology companies are weakening, and the raising of funds for early stage companies has become almost impossible.
Over the last two decades, VC funds have been the first place start-ups graduating from incubators looked for seed funding. Entrepreneurs would nurture an idea and the company in the incubator until an initial product was ready for market, and then the VC funds would open up their pockets and invest. The survey, however, found that there has been a substantial change in this process.
The new survey was conducted in the third quarter of 2010 among Israeli technology incubator managers. 71% of survey participants expect that the dominant investors (in terms of numbers) in start-ups graduating from incubators will be angels, whereas 29% of them expect the dominant investors to be foreign and institutional investors. Survey results clearly show that angels are expected to take the place of VC funds, which will no longer be the dominant investors in start-ups graduating from incubators."

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