Bob Crimmins left some very insightful comments on a Keiretsu Forum member's website at http://startuptrek.net/sequoia-backed-blogger-jason-calacanis-launches-j

Bob Crimmins left some very insightful comments on a Keiretsu Forum member's website at http://startuptrek.net/sequoia-backed-blogger-jason-calacanis-launches-jihad-against-keiretsu-forum/#comment-858 http://startuptrek.net/sequoia-backed-blogger-jason-calacani... Here are some key quotes but the whole set of his comments are worth reading. "While I don’t fully understand the inner workings of Keiretsu, what I think I have learned thus far is 40%- 50% (huge numbers) of the startups that pay significant fees to Keiretsu get no funding." "In fact, I believe that Keiretsu’s incentives would be more properly aligned if they did have a stake in the outcome of the startups they represent. As it is, they have no incentive to ensure that every startup they put in front of their cadre of investors has a better chance than a coin flip of getting funded. [..] For example, Keiretsu could only take fees from startups who actually get funding, i.e., a success fee." "I would support a pay for performance model where the angel aggregator group only gets paid if they are successful in making a good match between their investors and the companies they charge fees to--no funding, no fees. Charging, say, a 2% - 4% success fee is utterly reasonable and in this scenario, the angel group has it’s incentives aligned with the startups and the investors, i.e., to make successful matches between entrepreneurs and investors."