Based on my limited experiences with the handful of angel investors that I’ve met, it appears as though the angel investment market is heavily influenced by everything that happens further up the investment ladder in the professional VC market. This would make sense, because angel investors would like to get in at the seed round stage of businesses that could end-up taking a larger Series A, B, and C investment on a higher valuation from VCs. Too this end, angel investors may even build much of their investment strategy around their own past experiences of working with VC firms - which it’s more than likely they’ve had in the past (be it as an entrepreneur or as a fund investor). So if you’re a UK-based Web startup trying to tie-up an angel investment, it’s useful to understand what VCs are betting on, and how that might influence the thinking of your perspective angel investor.

The last twenty-four hours in the blogosphere have thrown up three posts discussing what 2008 may hold for VCs and startups:

Mike Butcher, of TechCrunch UK (it’s great to have it back!), has a great post covering not only the European/London VC scene for 2008, but the tricky topic (and one that has previously raised heated discussions) of involving Silicon Valley in your European Web startup;

Quite obviously I think you can startup in the UK and Europe. But it is also smart thinking to put down feelers in Silicon Valley, that’s all I’m saying. I doubt anyone would disagree with that point.

Erick Schonfield, of the original TechCrunch, made a post covering the markets that VCs are most bullish about for the coming year. The Internet doesn’t seem to be doing too badly, but it’s no suprise that clean tech is leading the way (slide from TechCrunch);

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Josh Catone, of the recently redesigned ReadWrite/Web, has a another post that confirms that VCs aren’t completely down on 2008, despite everything we’re hearing from Wall St right now;

Overall, VCs peg the entire venture capital market at $20 billion to $29 billion in 2008 — putting it on par with 2007 levels. The majority of those polled also see the IPO market strengthening as well, and mergers and acquisitions increasing, though they are split as to the value of those deals.