“Angel groups” are associations of angel investors who regularly meet, often in person, to evaluate and provide funding for startup ventures. These groups can have a wide range of practices, and there is a growing trend of angel investors coming together to form or join such groups. According to data from the Angel Capital Association, the number of angel groups has seen a significant increase, rising from just 10 in 1996 to over 330 in 2013.

Typically, these angel groups focus their efforts on a particular geographic area, which could be a single state, a specific region within a state, or sometimes even a particular city or metropolitan area. On occasion, these groups may instead concentrate on a specific industry sector rather than a specific location. The main objective is to leverage the local or specialized knowledge and networks of their members to enhance their investment decisions. These groups unite individuals with similar investment goals but diverse skills, expertise, and experiences, which can instil greater confidence in their investment decisions and lead to more favourable terms for the startups they support.

Angel groups come together for various reasons, including gaining access to a pipeline of investment opportunities, reducing investment risk, achieving greater diversification in their investments, conducting more thorough due diligence, making more substantial and impactful investments, and having more influence over the success of the startups they back.

Typically, angel groups focus their investments on the seed stage of startups, although they may occasionally participate in Series A or later funding rounds. In the United States, there are at least 200 angel groups consisting of approximately 12,000 individual angel investors. Prominent angel groups often have memberships ranging from 100 to 200 members, and their investment focus can vary, with some specializing in specific industries while others maintain a more open and diverse investment approach.