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My whole comment was facetious, but I also want to make people think. Companies like Facebook and Paypal, when they go public, produce a huge number of angel in
by ghc 12y ago
My whole comment was facetious, but I also want to make people think. Companies like Facebook and Paypal, when they go public, produce a huge number of angel investors. When startups like Akamai get huge, they often don't produce the same influx of capital for new startups.
Boston is fine...for now. Companies from the first dotcom boom produced enough investors to sustain most of the ecosystem. But in the future, if there aren't the kind of IPOs that lead to huge amounts of money being thrown at startups, the high cost of living will take its toll.
Even now, the VC pool is small enough that the loss of Fred Destin in the shakeup at Atlas is widely mourned. Can you imagine the loss of a single early stage investor (not involved with YC) being noticed in the Bay area?
If the only early stage investors left are groups of lawyers (Beacon Angels, I'm looking at you), and the Series A climate remains as tough here as it's been, will Boston still be in good shape?
That's why I say that Boston has a bit of a PR problem. Even now, as an advisor for those companies "developing new technologies" at the Harvard Innovation Lab, I've seen first-hand that there's just not enough "smart money" to go around.
Maybe the HubSpot and Wayfair IPOs will change all of that. Maybe Paul English's Blade will provide the PR, even if it just produces consumer companies. It's an open question.