The Buzz on Angel and Seed Investing Continues

Ah – well – another day passed and there was once again a ton of chatter around angel investing.  A lot of it was prompted by AngelConf 2010 which you can watch recordings of on (AngelConf 2010 Part 1 and AngelConf 2010 Part 2).  While there continues to be plenty of negative VC tone and “disruptive change is here” (ala traditional VC is over), there were also some great nuggets, including my favorite line from Joshua Schachter of typical VC behavior of SHITS (Show High Interest Then Stall).

But I think the two best posts to come out of yesterday are Lead Investors, Dipshit Companies, and Funding Every Entrepreneur by Fred Wilson and MoneyBall for Startups by Dave McClure.  While they come at things from very different angles, they are both very insightful and important.  Importantly, they are willing to use words in their posts that Goldman Sachs has apparently banned in email as of yesterday.

We are packing up the Homer house today and I’m looking forward to diving back into the fray next week in Boulder.

  • Also amusing was this week's "Always On Venture Summit at Stanford", with yet another panel about Angel investing… populated 90 (100?)% by VC's.

    Angel and VC are equivalent – they were each $26B in 2008; they both dived in 2009; and they will likely be comparable in 2010. I think they are synergistic.

    Unfortunately, now that FINREG was signed by President Obama, Angel investing is going to be killed off by 25 to 50%. You can no longer count your primary residency in your Net Worth, to quality as an Angel investor. And the SEC just issued guidelines further reducing the pool of Angel investors. So look for a lot less startups, going forward… and these new rules are already in effect… no delay.

    thanks a bunch, U.S. Congress. A lot of help with job formation there… killing off our best job creation mechanism.