Angel Investors: 'Birds of a feather flocking together'

I recently replied to a research survey on angel investing that got me thinking.  The survey was focused on teasing apart the issue of trust that angels investor had in the entrepreneur and how it affected their decision to invest.

It occurred to me that perhaps a very important underlying factor affecting the angel's (and VC's) reason to invest was being missed.  It may not primarily be the investors' comfort with the entrepreneur but his comfort with his fellow investors, particularly the lead angel, that influences the decision to invest.

Let me give you an example.  In one case, I invested in a deal not because of the entrepreneur but because I knew two investors that I really trusted were in the deal.  In fact, I have not met the president of the start-up company.  But I trusted that the lead angel would work to protect his own and my interest and would do what he could to make it a success.

This type of 'logic' (and I do use the word loosely) is more common than the case where each potential investor taking the time to get to know the entrepreneur, much less his business plan.