Fascinating, Scott. This shows some fairly large scale shifts in the ways that companies will be raising capital. I'm particularly interested to see how the Angels develop as the space gets more and more crowded.
Good overview
tokyogai
1/13/2012 8:39:22 AM
Scott- this is a good overview and a look into some of the real issues facing VCs today. They have been slow to move to new models that do not involve lots of large IPOs and the "old" formulas no longer work. Most VCs I talk to today do not want new business that take a lot of startup funds and they want things that become profitable very quickly. They are guilty of trying to model old successes instead of looking for new ones. Many founders that I deal with are shunning them and finding private investment from Angels- bot because they are easier to get funding from, but also because they tend to interfere less with the business.
Re: Good overview
Phoenix
1/13/2012 9:35:05 AM
A very interesting post Scott Good to see VC's moving in the right direction.
@ tokyogai You are right about new business founders wanting less interference from their investors. I think it is their ability to be flexible and innovate that makes them successful in the first place. If that ability is taken away from them by their investors they are unlikely to reach their full potential.
Re: Good overview
cat tail
1/13/2012 12:50:42 PM
So wait, OWS is using Twitter -- a venture funded by the 1% -- to rail against the evil of the 1%?
Ha Ha @Cat tail. You're not supposed to see the hypocrisy of the OWS. You're supposed to be indignant about the hypocrisy of everyone else.
If we were to judge by behavior, OWS would also seem to favor iPhones, some top-of-the-line camping gear, and many other fruits of capitalism.
One more of my Utopian dreams just burst, @Predictable. And it's your fault.
Another sign is the fact that some states, including Connecticut, are looking at angel investors as part of their jobs programs. The Connecticut legislature's jobs package bill passed in May 2010 allows angel investors who put at least $100,000 into a young, small Connecticut company in certain technology and science fields to deduct a quarter of that investment from their state income taxes.
Some more stats on VC funding. Several of the VC partners on this panel said that they only fund 1% of the companies that they look at. That means there is less of a chance of getting funded than there is in getting into Stanford, where most of them went. So clearly there is another reason why it pays to be the VC.
Ha, thanks Fred. Enough people complained about the old one...
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