- 10 Tips for Choosing a Mobile Demand-Side Platform - @Liftoff and @PocketGems heroes.liftoff.io/blog/10-tips-c… 6 days ago
- RT @pgbiz: App Store users have spent over $4 billion on Supercell’s Clash of Clans pocketgamer.biz/news/68484/app… https://t.co/cuXlLuCnOW 1 week ago
- @ICEXLosAngeles @Chartboost Gracias por venir a @chartboost hoy! 2 weeks ago
- Creator, the new $6 burger machine is coming to San Francisco! sf.eater.com/2018/6/21/1748… via @EaterSF 3 weeks ago
- RT @Chartboost: Time for a career change? Come boost charts with us! chartboost.com/jobs #NowHiring #techjobs #sanfrancisco #amsterdam… 3 weeks ago
Thoughts by José Luis Agell
The rise of Angels
September 20, 2010Posted by on
There’s being a general discussion out there about how the VC industry is changing , enabling the rise of Angels and Super Angels. The financial downturn has definitely forced a change of model. But there are other factors which are modifying the way start-ups are funded, especially in their early stages.
And here are my notes:
- The rise of Angels is an effect of the rise of power of Entrepreneurs,who have gained enormous amount of leverage due to:
- -Technology improvements (cloud-computing, social media, blogs, Adwords…).
- – Companies can be built as they grow.
- – Incubators have surged and are the new business schools. “Learning by doing”.
- Entrepreneurs are demanding new rights (less control, more specific knowledge, cash upfront,…)
- Lots of successful entrepreneurs are becoming Angels in order to capitalize their money, especially now that real state is not a business.
- Financial effects: rounds are continuous, valuation prices change everyday, no round leads, no board seats.
- VCs bring Money, Advise and Control.
- Angels bring Money, sometimes Advise, no Control.
- “Less meeting, more tweetting”. Broadcast (or multicast) your brand.
- There are companies now who are financing themselves with Angels, from beginning to end.
- Angels investments stay local. You want to know the entrepreneurs.
- The smaller the startup, the smaller the Board should be. Early stage companies should have around 2 people in the Board.
Thanks Naval for sharing your insights!