Are Angels Getting Better Deal Flow In This Economy?

I had an opportunity to sit in on an investor meeting for an Indianapolis-based angel network. Creo Quality was asked because the services we provide and experience we have might be an asset to this group and its portfolio companies. During the meeting, there were two established, albeit still early stage companies, presenting. One company has achieved over $10M in revenue and is cashflow positive in just under 4 years. The second is a venture-backed company seeking additional investments to launch a second generation product line. The maturity of these companies is unusual for an angel investor group. Both companies have been around and generating revenue for several years. Usually, companies seeking angel funding are earlier stage, often times seeking seed funding.

Is this a sign of the times in the investment community? Are VCs sitting so tightly that they will not consider investing in companies seeking series A or later funding? Interesting, and a great opportunity for this Indy network.