Analysis On Operation Pattern Of Angel Investment Groups In China

"Angel Investors" refers to rich individuals who invest in early startupsto get enterprise equity.“Angel Investment” helps the startups to fill thecapital gap between those from friends and family with those from venturecapitals. It plays an important role in a country to stimulate technologicalinnovation. In USA and Europe, angel capitals have become a key source forcompanies in seed stage. In2011, the number of active angel investors inUSA is nearly320,000. In that year, the total size of the angel capital is$22.5billion and more than66,000companies get funded from it.Angel investment groups emerged when individual angel investmentactivities developed into a certain stage. Angel investment groups buildcommunication platforms between angel investors and entrepreneurs,improve individual professional knowledge and enhance the influence of angel investors, so that it could further promote the development of angelinvestment. There are several kinds of angel investment groups in USA,which include angel Investment clubs and associations, angel investmentinstitutions, angel investment funds, incubators combined with angel capitals,and internet fund raising platforms. After more than20years of development,angel investment group in USA has become one of common forms for angelinvestment activities, which has already been in a relatively mature stage.Angel investment is a new thing in China, also with the angel investmentgroups. There are several factors limiting the development of angelinvestment groups in China, such as imperfect investment environment,narrow communication channels for information, lack of the investmentknowledge for individuals and so on. This article analyzes the experience forthe development of angel investment group in USA Angel, explores theproblems faced in China and is trying to find the way to speed up progress ofChinese angel investment groups.This article is divided into four parts:The first part discusses the research background, related research resultsin this field. The scope of “angel investment group” used in this article isdefined. The research methods are also been described in this part.The second part is the review of angel investors and angel investment groups, as well as the summary of experience for the development of angelinvestment organizations in USA. In this part, those experiences includinggovernment incentive policies, services provided by angel investment groups,angel investment institutions, incubators, and internet fund raising platformsare discussed.The third part is the analysis of the current status of angel investmentgroups in China, as well as in Shanghai. Based on the study of the behavioralcharacteristics of angel investors in China, the article explores the currentoperation pattern for domestic angel investment groups, analyzes theproblems encountered, and brings forward suggestions. The next is about theinvestigation focusing on Shanghai, which includes the description of currentstatus, angel investment group case study, and prospect for future.In the conclusion part，there are summary on existing domestic angelinvestment environment, as well as the prospective vision of angelinvestment groups in China.