A colleague active in the angel community dropped me a nice note encouraging me to keep writing here, but asking if I’d gotten negative about angel investing. He pointed out that angel activity was higher than ever, in spite of the challenges organizing all the parties involved. If that was the impression, I apologize: was just my cynical humor coming out. As I noted in my first post, I’m a big believer in the need for angels and a variety of means for gaining access to early-stage capital. I just believe that the current environment is in need of some shaking up.
The main reasons for starting this blog were to underscore the issues angel organizations face, and to start highlighting some new ideas. I felt the first part was necessary because the arguments around what to do differently often ignore the realities of the constraints. For instance, I was whining kvetching explaining to another colleague about the challenges operating an angel group sustainably. He’s an outspoken critic of angel groups charging entrepreneurs, and his advice boiled down to “raise your revenues, lower your expenses, but DO NOT CHARGE ENTREPRENEURS”. Okay… [Dude… Am I wrong? Am I wrong?]
Suffice it to say, I hope the previous posts illustrate that the problem is somewhat more complex in execution. However, I’m happy to say that innovation is alive and well in the angel community, and a number of people are applying brainpower to create new funding paths. For the next few posts, I’ll look at some of the emerging models.