Video: The State of Angel Investing & What Startups Can Learn From It, According to Keith Rabois

Keith Rabois will tell you that he’s not a passive angel investor — quite the opposite. Along with a check, Rabois wants to bring to his investments the wisdom he’s gleaned from his time as an executive at companies including PayPal, LinkedIn and Slide (where he is currently VP of business development and strategy), as well as his experience investing in companies such as YouTube (s GOOG) and Yelp. These days he’s high on companies like Palantir and AirBnB.

Last week, he stopped by our office to share some of his insights into startups, Silicon Valley, investment trends and the rise of the super angels. Given his genuine desire to not only fund but help young companies, it was only natural that during our video interview he was a font of useful information for investors and entrepreneurs alike. In particular, he shared his insights on:

  • The proliferation and growth of angel rounds
  • The dearth of exits for angels
  • The importance of figuring out what you want from your VC
  • Questions to ask a potential angel (among them: What have they done in their own career?)

During the conversation, he pointed out that three years ago it was rare to see $500,000 angel rounds of investments in startups. Today, that’s the minimum starting point; it’s more common to see $750,000 angel rounds.

Is that because there are too many angels? “There is a halo around being an angel investor or a seed investor,” Rabois told me. “I was joking with someone recently that when you went to a party, it’s cooler to be a seed investor raising a round than an entrepreneur, and that’s a sign of major bubble in investing. ”

Sit back and watch this 20-minute interview. And if you are a startup/entrepreneur, pay close attention: