The equity gap is growing- small businesses worldwide are finding it harder to obtain needed financing, as has been well documented. For some companies, especially those in emerging economies with few resources, the only alternative is to seek funding from wealthy individual “angel investors” who are willing to invest in seed enterprises that are too risky for venture capitalists.

An article in the Economist details the role these angel investors play in funding startup enterprises, especially as they are becoming an effective bridge to expansion stage funding where investment firms are more willing to take over.