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One way I think it could be good for the tech sector is the return of reasonable angel investment. Outside of YC, angel investment has moved up the due diligen
by god_bless_texas 11y ago
One way I think it could be good for the tech sector is the return of reasonable angel investment. Outside of YC, angel investment has moved up the due diligence ladder, resembling something nearer to actual venture capital. When you apply VC difficulty meters to quantifying the success on return of investment, then everyone at the bottom loses. Angel investment was supposed to be high risk, high reward but now it seems even angel groups don't do actual angel investments any more. In Texas, angel deals are standardized at the 2-3 million dollar level for a valuation when they should be high 100's instead. Losing the angel syndicates and opening things up again for real, actual angel investment would mean alot more actual unicorns make it to the marketplace. Not just the ones that get high profile coverage because of educational pedigree or VC attention from sand hill.
- jroseattle 11y agoThe focus on specific dollar amounts is a red herring though. The implication of what is "reasonable" depends on whom you ask.