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You might be right that big VC will take the biggest hit, but from what I can tell, a large part of the market for $100K investments exists precisely because yo
by 7Figures2Commas 13y ago
You might be right that big VC will take the biggest hit, but from what I can tell, a large part of the market for $100K investments exists precisely because you have so many individuals who have done well in the Fed-inflated stock market.
When the number of people with $100,000 to throw at twenty-something founders fresh out of college drops and/or interest rates rise to the point where you can eventually get a 5-year FDIC-insured CD yielding as much as investment grade corporate debt in 2012, the impact on the angel market might not be insignificant.
- w3pm 13y agoExactly right. In our current zero-interest rate environment everyone with spare cash is scrambling to figure out what to do to generate a return. Stock market? Risky. Bonds? You've got to be insane. Real-estate? Very risky. Angel investing in tech companies? Used to seem crazy but now it's not any less risky than the other options. They'll all implode if the money printing ends. It is unfortunate since out of all of the options, investing in tomorrow's inventors is actually one of the better uses (for society) of idle money.
- icedchai 13y agoyou sound like someone with no investment experience. investing in the stock market is a lot less risky than angel investing. especially if you keep it safe with index funds and don't look at individual stocks. you have close to zero liquidity investing in private companies. you're buying something you can't sell, for years, if ever. with stocks and bonds, I can always get out.