This recent discussion of angels vs. VCs is just like the debate of hedge funds vs. proprietary trading firms. What's happened in New York (and Chicago) is that

This recent discussion of angels vs. VCs is just like the debate of hedge funds vs. proprietary trading firms. What's happened in New York (and Chicago) is that they've gone after after completely different strategies. Hedge funds have a lot of investor capital and must hold positions overnight, so they concentrate on portfolio construction. Prop shops don't have a lot of capital, so they can dabble in high-frequency trading where the concern is taking single positions as fast as possible, and often earning rebates from the exchange to provide liquidity. Having worked for both types of firms, I can say that "quant trading" is a pretty broad term. I suspect "investing in start-ups" will come to mean different things. (PG hints at acquisitions vs. IPOs as a differentiating investing goal.)