super angels

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?

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?