California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

While full data for 2008 investments are not yet in, the picture from the Angel Group
Confidence Report is that total angel group investments in North America are estimated
to decrease by at least ten percent from 2007.

 Angel groups appear to be focusing more on a few potential winners. The top reason for
the decrease was uncertainty in the market, followed closely by a loss in member wealth.
Despite the downturn, three-quarters of those surveyed expect the number of investing
opportunities to increase in the coming year and roughly half are still optimistic that overall
investments will increase.

So how do they plan to adjust to the current economic climate? Forty seven percent plan
to increase their co-investment activities with other angel groups and 33 percent will increase
co-investment activities with other equity investors such as early-stage venture capital firms
or individual angels. No information yet on California.

I am Tim Johnson and this has been the California Business Minute.