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Despite a complex global landscape, angel investors are planning to invest more in startups in 2025 than last year, with cautious optimism the prevailing mood. This is the key finding from the latest global survey of investors from Angel Investment Network<\/a> (AIN), the world\u2019s largest online angel investment network.<\/p>\n An impressive 40% of respondents said they will invest more in 2025 than the previous year, while a further 39% will invest at the same level. Just 12% said they would invest less. The findings highlight the resilience of the early-stage ecosystem and its ability to deliver innovation and returns.<\/p>\n When asked which sectors created the most excitement at the moment, HealthTech topped the list, with 54% of respondents interested in this sector. Next came AI with 49%. Despite a changing political climate, Sustainability (39%) also remains a key area of interest, reflecting a growing awareness of impact alongside financial returns. This was followed by FinTech at 30% and ClimateTech at 27%.<\/p>\n Amidst this cautious optimism, the all important funding pitch faces a more rigorous assessment than ever. Overoptimistic financials were the most cited flaw in the current climate, according to 21% of respondents. This was followed by an unrealistic path to profitability, according to 20% of investors. Next came overvaluing the company (17%) and a lack of competitive differentiation (11%).<\/p>\n Thinking about recent startups they\u2019d backed, a clear value proposition came out as the top reason investors decided to commit, named by 70% of investors, followed by the transparency of the founders (59%) and the relevant experience of the team (56%).<\/p>\n These insights highlight the need for startups to present well-researched, realistic, and transparent pitches to secure investment. The average initial investment accurately reflects the early-stage nature of angel investing, with 65% of angels typically investing \u00a325,000 or less per startup.\u00a0<\/p>\n While the majority of angels (62%) have invested in under five businesses, nearly half (49%) of those surveyed have witnessed a startup they backed achieve a successful exit, reinforcing the potential rewards of early-stage investment.<\/p>\n The survey of investors across AIN\u2019s global network revealed a significant 57% of investors have been\u00a0 founders themselves, giving them a valuable understanding of the challenges and opportunities facing startups.<\/p>\n While cautious optimism is the prevailing mood globally, an uncertain macroeconomic climate could impact the willingness to invest. When asked what potential factors might influence their investment decision this year, 80% of angel investors cite uncertainty about the economy or potential recession. Next came potential increases in taxes (39%), followed by consumer sentiment (35%).\u00a0<\/p>\n According to Mike Lebus, founder of Angel Investment Network: \u201cThe current sentiment among angel investors in 2025 is one of carefully considered optimism, which is good news for the global startup ecosystem. Their backing of more startups, coupled with their focus on high-potential sectors like AI and HealthTech, shows that the early-stage funding landscape remains strong and resilient.\u201d<\/p>\n He continued: \u201cHowever, this enthusiasm is tempered by a clear-eyed understanding of fundamental requirements and a new mood of realism amidst economic headwinds. Startups must recognise that the era of overinflated valuations is over, and focus on robust business plans and realistic financial projections to enhance credibility and secure funding. Those that do will be well-positioned to capitalise on the capital and experience currently available in the angel investment community.\u201d<\/p>\n AIN surveyed 84 global investors across their network in an online survey that was completed in April 2025<\/p>\n Are you looking for an angel investor to help fund your business? Join us at <\/em>Angel Investment Network<\/em><\/a>, where global investors meet the great businesses of tomorrow.<\/em><\/p>\n \t<\/div>\nOveroptimistic financials \u2013 biggest startup flaw<\/strong><\/h5>\n
1 in 2 have had a successful exit<\/strong><\/h5>\n
Recession biggest risk to investment<\/strong><\/h5>\n
About the survey<\/strong><\/h5>\n