Angel Investors Profit From Slumping Markets

The bearish market hasn't stopped angels from acting like bulls, Portfolio reports. Angel investors, those who fund start-ups and small companies, are profiting from Wall Street's woes: Reduced private equity funding has made angels the go-to source for capital, improving their bargaining position and giving them more chances to invest.

“The stock market isn’t that attractive. Bonds aren’t that attractive,” one angel explains. “Angel investing offers people a different option.” Despite the market downturn, angels plan to boost their investments. They are treading carefully, but one confirms that economic turmoil makes for good business: “If the market goes down, it will be a great opportunity.” (More investing stories.)