Recently there has been a food fight in Silicon Valley over the behavior of certain Angel investors. Perhaps you’ve seen some of it playing out in the blogosphere. Riveting stuff to be sure. What gets me though is that a lot of the angst seems to center on whether leading Angel investors are acting like VCs or Angels. My first thought was “well, who cares?” But, on reflection, I thought it was revealing of a continued disconnect in the usage of these terms, and what they actually represent.
I think that it is important to clear this matter up because as I have mentioned many times over the last four years, the VC industry is bifurcating. One part of the industry focuses on raising and managing larger funds, and providing expansion capital for software businesses and capital for intellectual property driven businesses that require significant capital investment to get to market. These funds seek exits of $200M or more, to allow them to deploy large amounts of capital and generate venture returns. This part of the industry is well established.
To read the full, original article click on this link: The Difference Between an Angel and a VC «
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