'Toy' isn't quite right. Closer to 'status symbol'. This isn't necessarily a bad thing for entrepreneurs. When angels are investing for any reason other than

'Toy' isn't quite right. Closer to 'status symbol'. This isn't necessarily a bad thing for entrepreneurs. When angels are investing for any reason other than 'make more money', valuations go up and terms improve. Seed equity in early-stage companies is on the verge of becoming a Veblen good - the more expensive and exclusive the deal is, the more satisfying it is to be able to nonchalantly say "yeah, I'm in that deal."