Angel-gate and its Implications

I have been sitting on this one for a while, but I am finally ready to weigh in on “Angel-Gate” – at least from the perspective of what the implications of its existance mean for entreprenuers and early stage investors. Read more of this post

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Paul Graham on the Future of Start-up Investing

Y-combinator’s Paul Graham did an excellent piece on his vision for the future of start-up investing.  Much of what he says echoes things I wrote about last March.

One thing missing from the discussion, however, is the impact that this flood of smaller investments has on the business model of the investors themselves – or not (as is mostly the case) – and more importantly what that means for entrepreneurs. While its true that there is a tremendous amount of room for more players in the seed-round market – that’s not necessarily a good thing for start-up managers. Read more of this post

diaspora, Mr. Brainwash, and Why An Article in the NY Times Won’t Ruin Your Start-Up

An interesting piece discusing how group-funding sensation diaspora which had potentially tapped into a well of anti-Facebook sentiment with its open-sourced alternative. The central point of his post was to muse over how this might be a watershed moment for Facebook rather than a validation of diaspora one way or the other. Read more of this post

Y-Combinator and Techstars Performance – Lessons Learned?

The first look at Techstars historical data came out last month and the results showed performance very similar to the early results posted by Y-Combinator. The quality returns would lead us to believe that a.) the guys running these shops are geniusesb.) The systems they use are superior systems for identifying quality teams and opportunities; or  c.) both… Of course its probably d.) none of the above – which isn’t a knock on these organizations – not at all.  Instead, I think its d. because of the sheer size of the opportunity that these firms are tapping. Read more of this post

New Seed and Start-Up Funding Model?

Its pretty clear that the venture capital model that has evolved during the Internet and post-Internet era is under pressure from its two most important constituents – investors that have for the most part gotten sub-par returns in venture funds (even when risk adjusted and particularly when you get beyond the top decile of VC firms) and entrepreneurs that have found it harder to find venture funding – particularly start-up or seed funding – and more importantly have found it hard to find the right amount of funding for their given idea. Read more of this post

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