According to a study released by the Center for Venture Research at the University of New Hampshire, angel investing picked up in 2006, and is likely to continue to do so in 2007. And biotech is one the top three bets receiving funds from angel investors.

Healthcare services, and Medical devices and equipment continued to account for the largest share of angel investments, with 21 percent of total angel investments in 2006, followed by software at 18 percent and biotech at 18 percent. The remaining investments were about equally weighted across high-tech sectors.

Why healthcare over software when investments in new drugs or devices can take years to make it through clinical trials? Mr. Sohl says it's because angels don't have to stay in over the long haul.

"Anything that has to go through clinical trials is tough, but early-stage commercialization of a drug or medical devices at a university can be good," he said.

See the full article from Red Herring. For those interested, Dr. Jeffrey Sohl, an internationally recognized expert on angel capital trends, will speak at The Council for Entrepreneurial Development (CED)'s Angel Investor Retreat on April 24 at the Washington Duke Inn and Golf Club in Durham, N.C.