Harvard and MIT Research: Angel Investors Outperform Venture Capital Reading List Leading alternative asset researchers Josh Lerner (Harvard) and Antoinette Schoar (MIT) have published a report analyzing how the Angel Investor asset class in the U.S. compares to the VC asset class. During the period of the study, the angel group outperformed the VC group overall. They also found that “startups funded by angel investors are 14% to 23% more likely to survive for the next 1.5 to 3 years and grow their employment by 40% relative to non-angel funded startups. Angel funding affects the subsequent likelihood of a successful exit, raising it by 10% to 17%.” The study authors posit that angel investors provide “value added and hands-on improvement … rather than just access to funds,” and often include “some of the most sophisticated and active investors in a given region, which might result in superior decision-making.” http://www.thirdway.org/report/rise-of-the-angel-investor-a-challenge-to-public-policy
