DISQUS

JPB · 8 months ago

It seems like the VC industry is vulnerable to being disrupted from below by organized angels. As VC's look to bigger deals later in a company's lifecycle to put all those funds to work, they are making themselves vulnerable to Angel groups who can do A-Rounds themselves.

I'd expect VC ranks to thin significantly and for smart VC's to start seed-level investments.

Taylor Davidson · 8 months ago

Should angel investing advance along the same path that venture capital took from a cottage industry to a established (and frankly, misunderstood and over-popularized) asset class? And how should the industry develop and spread best practices different than venture capital?

Mark MacLeod · 8 months ago

Sounds like an exciting time for angel investing. To me it will always be going through this stage. I know many angels. Most are very accomplished, successful and wealthy entrepreneurs.

Despite this universally high level of business experience they are almost all new to investing and to tech investing in particular, so I am sure conferences will always cover the fundamentals.

Still, to the reader comments above, I certainly hope the angel industry does not follow the same path. As you pool larger funds you introduce agency risk and misalign your goals because it can be more interesting to get a management fee on the fund size than to earn your carry.