Halo venture capital is a reference to the growing popularity of angel investors in the venture capital marketplace. The halo is a direct reference to the halo of the angel and has even been used by one noted company as its official name.visit my latest blog post at http://www.americaschoicecredit.com/what-it-takes-to-attract-venture-capital/
Angel investors prior to World War II were most often friends and family of the entrepreneurs who invested their own capital for business start-up projects. The amount of equity and management control they demanded in return varied from investor to investor. They were playfully referred to as 3 F investors. This meant family, friends, and fools. Today, angel investors are not usually family or friends, and they are certainly not fools. Halo venture capital is a term used to describe the investments of angel investors.
Angel investors differ from normal venture capitalist mainly in the fact that they invest their own funds while the VC invests the funds of investors that have pooled their resources in a venture capital fund. The fact that the “halo investments” are private funds allows the angel investors to fund smaller companies that are usually below the deal limits of the venture capital fund managers. However, this does not mean that the angels are limited to smaller deals.
The angel investors are willing to take more risks, in fact, than the venture capital fund managers. Despite the fact that the very nature of venture capital entails …