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Credit and Debt
Investing in the investors
Investing in the investors

When I testified in Annapolis to support the proposed Angel Investor Tax Credit, my panel was asked a not wholly unexpected question: Why should a bunch of investors get a tax credit when they voluntarily back high-risk companies with the hope of receiving tremendous profits? The operative word is "hope." Startup failure hovers around 80 to 85 percent. As a board member of the Baltimore Angels, when my colleagues and I recruit people to join and ask them to put their money behind local startups, we also warn them to be ready to lose that money. The Kauffman Foundation estimates that angel investors are responsible for up to 90 percent of early-stage startup funding not obtained...