A new report by the Organization for Economic Cooperation and Development (OECD) looks at how new businesses and start-ups have been raising money since the crisis.

With banks reluctant to provide loans to start-ups and venture capital firms preferring to invest in later stage companies, a growing class of experienced entrepreneurs and business people are stepping in to fill this funding gap.

These “angel investors” not only provide funding but also leverage their expertise to provide mentoring to the entrepreneurial teams in which they invest, according to a new OECD report.

100 interviews with entrepreneurs, policy makers and academics from 32 countries.

Financing High-Growth Firms: The Role of Angel Investors looks at angel investment around the world and includes over a hundred interviews with entrepreneurs, policy makers and academics from 32 countries.

Angel investment market in a number of countries isgreater than traditional venture capital investment

The findings show that angel investments are increasing around the world and, while precise data is hard to collect, the report points out that estimates of the total angel investment market in a number of countries are greater than traditional venture capital investment, particularly for seed and early stage financing.

Women as Angel Investors

The report also highlights the fact that women are greatly underrepresented in the angel investment community.

Only 5% of angel investors in Europe are women and only 13% in the U.S.

While groups like Golden Seeds in the U.S. and GoBeyond in Europe are working to engage more women in angel investing, more efforts are needed.

The book also includes a profile on Astia and suggests that if a greater number of women were investors, more women in high growth firms would be successful in accessing angel and venture capital funding.

Government policies to boost angel investment

Government policies to boost angel investment are reviewed in the book, including tax incentive schemes in the U.K. and France and co-investment funds in the Netherlands, Scotland and New Zealand. While policy makers tend to focus on the venture capital market, which is more visible than the angel market, data indicates that angel investors will continue to be critical in overcoming the financial and growth challenges facing entrepreneurs, in turn, contributing to innovation and job creation, according to the report.

For further information, contact the report's author, Karen Wilson at karen.wilson@oecd.org

The report is available online at www.oecd.org/sti/angelinvestors

For further information about the OECD, visit www.oecd.org

Karen Wilson works in the Structural Policy Division of the Science, Technology and Industry Directorate at the OECD. She is the Founder of GV Partners, a research and consulting firm focused on entrepreneurship and innovation. She is also a Senior Fellow at the Kauffman Foundation, a Board Member and Advisor of the European Foundation for Entrepreneurship Research (EFER), a member of European Board of Astia, and a member of the European Leadership Council for Harvard Business School.