Posts tagged with Angels

Silicon Valley

The real reason investors are backing adolescent CEOs

When you think of Silicon Valley, you're probably more likely to think of young entrepreneurs risking it all on ideas that can change the world.

That image of a Silicon Valley driven by young, ambitious individuals is, of course, only partly true. There's plenty of gray hair in Silicon Valley, particularly on Sand Hill Road and in the hallways of some of the Valley's most profitable companies, like Oracle, Cisco and HP.

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Startups: money can't buy love, or usage

With the hottest startups raising big money from investors, and founders and early employees of some of the most successful cashing out some of their equity to the tune of millions, it's no surprise that so many entrepreneurs and wannabe entrepreneurs are taking the plunge and starting companies that they hope could be the next big thing.

Building a successful company, of course, is tough, and the odds aren't favorable. Despite the hot market, a growing number of observers believe that we may be in the midst of a bubble which may not be as big as the first, but which could still create significant pain for entrepreneurs and the startup investment community.

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Are the good times over (again) for startups?

In 2008, just as the global economy was collapsing, one of the most storied venture capital firms in Silicon Valley, Sequoia Capital, gave a presentation that encouraged entrepreneurs to raise as much money as they could, and hunker down for a nuclear winter.

Three years later, the startup economy is zooming along. Many young companies large and small have been raising money at significant (and arguably exorbitant) valuations. A new breed of angel investor -- the 'super angel' -- has emerged, buoying the market for startup capital. And thanks to secondary markets for private company stock, founders and early employees at some of the most successful companies have been able to obtain liquidity.

But are the good times coming to an end, again?

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Are super angels conspiring against entrepreneurs?

Startups looking for funding increasingly have a new class of investor to pitch: super angels. These are individual angels who have raised money from others in the hopes that their smallish funds will serve as the basis for an investing model that merges the best of the angel and VC models.

The value proposition to entrepreneurs looking for funding: we're as nimble and friendly as angels, but we have more money available if we decide to make a big bet. But is this all a facade?

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