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Finance and Credit
 

The angel investor financing of innovation projects

Vol. 16, Iss. 22, JUNE 2010

Available online: 27 May 2010

Subject Heading: Innovations

JEL Classification: 

Kosov M.E. head of a chair «Tax trial and control», Russian State University of Trade and Economics, candidate of economics, docent
kosovme@mail.ru

Sigarev A.V. student of magister program «State policy and regulation», Lomonosov Moscow State University
alexsigarev@yandex.ru

Innovation companies are sorely in need of financing in the early stages of their development. The high level risks don't allow traditional ways for raising funds. This article is devoted to angel investors study as a funding source for innovation projects. The basic features, networks and syndicates of angel investors are examined. The situation in Russian Federation is analyzed, where angel investors' movement is only developing. It is concluded that the world financial crisis can influence the angel investors sector in two different ways. On the one hand the crises slows down the withdrawal from invested projects, reducing the amount of money, available for investment. On the other hand the venture capital development history shows that investment made in period of economic crisis can yield high dividends in the future.

Keywords: angel investors, innovations, innovation projects, financing, venture

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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