Jay-Z, Buffett and Forbes on Success and Giving Back Page 5 of 5 - Forbes.com. More angel investor groups, venture capitalists co-investing in young firms. Angel investor groups - networks of private investors - are investing in more young U.S. companies alongside venture capital firms, according to a new report issued today by Dow Jones VentureSource.
The two groups together invested $282 million in 68 companies in the first nine months of 2010, up 19 percent from $236 million and 59 companies in the same period last year, according to the report. "As venture capitalists scout younger companies, especially in the consumer and Internet spaces, we are seeing them tap into and co-invest with angel groups," said Jessica Canning, global research director for Dow Jones VentureSource. Most of the money has gone to life sciences and information technology companies. At least seven angel investor groups across Texas, including one in North Texas, are forming an alliance to act as a catalyst for more innovation through more private investment. Still, angel investments are a small slice of all private investments.