Blog

Venture Capitalists and Angel Investors

Published: 4/19/2011 9:10:20 AM


Longtime VC Bob Pavey said in a recent article that the venture capital community needs to not only coexist with Angel investors but to embrace and encourage their activity.

Recently, there's been some tension between so-called Super Angels and the venture capital community over the competition for hot early stage deal activity.

Pavey says that Angel investors fill a critical funding gap between the "friends and family" money - typically sub-$100,000 and the $1 million or above territory of institutional venture capital.

In spite of the lower cost of starting some types of technology companies, entrepreneurs simply cannot get to institutional venture capital unless they have achieved a certain set of milestones. Angel investment facilitates that achievement.

Pavey goes so far as to say that Angel investor capital gains taxes should be lowered for investments in very young, pre-revenue companies.

VentureDeal

 

Don Jones
CEO, VentureDeal

Blog Home

Free Trial

Want unlimited access to the complete database with thousands of technology companies, VCs and transactions for only $25 per month?

Start your Free 14 Day Trial now – no obligation or credit card required.

Free 14 day trial. No Obligation. Click to Register.

RSS Feeds

Add this page to your RSS aggregator page with a simple click of a button below.

Add to My Yahoo! Add to Netvibes
Add to Google