Angel financing and public policy: An overview

Within the past few years, public efforts have sought to encourage individual, or "angel", investors. This article provides an overview of the motivations for these efforts. It assesses the underlying challenges that the financing of young growth firms pose, the ways that specialized financial intermediaries address them, and the rationales for public efforts to encourage angel investors. The final section raises a set of questions about the practical implementation of these efforts. (C) 1998 Published by Elsevier Science B.V. All rights reserved.