This is Part I of a two-part series on Revenue-Financed Capital (RFC) for angels. Part II will address the question of whether angels should include RFC in their investment portfolio.

Angel investing has undergone significant changes in recent years. As an important source of financing for startups and small businesses, it's critical for current and emerging angel investors to understand the shifts occurring in the industry. Here are some of the most notable dynamics impacting angel capital today.

Last week, the ACA Public Policy leadership, alongside members of GrayRobinson, made a visit to Capitol Hill to support expansion of Section 1202 exclusion of gain from the sale of qualified small business stock. ACA has been the driving force behind the legislation because it serves as a catalyst for investment and innovation within the Angel community. The legislation, HR 3937, has passed through the Ways and Means Committee and is awaiting debate on the House floor. In addition to Section 1202, the group also urged legislators to protect financial thresholds in the current definition while also opening up measures of sophistication with additional entryways.

While not the only factor in determining the success of a start-up company, having a knowledgeable and active Board member can help drive success in a start-up company and is a factor that should be evaluated.

Las Vegas, NV (July 10, 2023) – Queen City Angels’ Chairman and Co-Founder Tony Shipley’s pride for the more than 190 women and men who make up their membership as well as the coaching and mentoring they provide to entrepreneurs, is evident. In fact, winning the Hans Severiens Award at the 2023 ACA Summit of Angel Investing is a validation of his profound efforts to grow and support angel investing nationally through the Angel Capital Association as well as the community in which he works.