At a panel on angel funding, several prominent VCs seemed to agree that early-stage investing is more art than science. But they had very different approaches to what they looked for in startups: anything from a lean executive team to just the tiniest bit of cash.
As legendary investor Ron Conway has pointed out in a strongly-worded email to some of the super-angels who were at a recent secret meeting, the most important part of the Silicon Valley startup ecosystem is the entrepreneur — something certain angels seem to be forgetting.
Reports about a secret meeting in San Francisco where “super-angels” discussed ways of fighting back against mainstream venture capital funds and holding down startup valuations has sparked some strong reactions, including responses from angel investors Dave McClure and Chris Yeh, as well as VC Fred Wilson.
Super-angels like to make themselves out to be the startup’s friend — the one who knows what founders are going through, the one that shares the entrepreneur’s pain, and so on. But in private meetings, some say the angels can be heard singing a different tune.
The frothy state of web angel investing has changed the early lives of many companies in the past year, but it’s not clear how much staying power today’s leading class of “super-angel” investors will have. Is this a lasting new class of investors or not?