I think that adding more VCs and Angels to the ecosystem would actually make me less likely to consider raising money. The first year of a startup can be incre

I think that adding more VCs and Angels to the ecosystem would actually make me less likely to consider raising money. The first year of a startup can be incredibly cheap. Cheap enough that you simply don't need any outside cash to make it happen. For me, the only reason I'd ever consider taking VC if for the side benefits that come along with the money. When you have an entity like YCombinator backing your thing, you get a huge boost from their connections (and the fact that they're inclined to use those connections for your benefit). That's orders of magnitude more valuable than the lousy six grand they give you, and if I could get that help without the money attached or the requirement to move to the bay area, I'd jump at it for my latest project. Now imagine the scenario with Random No-Name Angel with $100k to give you. All you get out of that deal is money. No influence. No guaranteed TechCrunching, no introductions to Important People, no Inc Magazine cover story about you and the latest crop of young entrepreneurs. Unless you actually need money (which if you're smart, you shouldn't), there's just no advantage there.