Is there increased tension between venture capitalists (VCs) and angel investors? Lots of stories these days would lead you to that conclusion. Are angels cutting into our deals? Are they making venture capitalists less relevant, especially if some angels are raising sizable funds? Are we competing with them for LP money? The answer to each of these questions is “Yes,” but that is not really the point. Not only do I think we need to co-exist with angels, I think we need to embrace them, champion them and get Congress and other policy makers to enact tax and state policy that encourages more of them. It seems clear to me that the more angel investors we have, the better—not only for entrepreneurs (which is obvious), but also for our VC ecosystem as well as for the country at large.
I’ve been a VC for 42 years and served as a past chairman of the National Venture Capital Association (NVCA). For better or worse, I have a long historical view. Angels have always been with us—you can say Queen Isabella (who was even before my time) was an early angel when she financed Columbus’ storied trip across the Atlantic in 1492 (and just like entrepreneurs of today, he too had to change his plans when the unexpected, i.e. America, came up).
To read the full, original article click on this link: Embracing Angels: A VC’s Perspective | Xconomy
Author: Bob Pavey
