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VC pain is an Angel’s gain!

July 9, 2008

According to Larry Dignan of ZDNet VCs are a glum bunch over the economy and the lack of exits.  Larry explains that many VCs are “becoming tightwads and holding on to their cash.”  Of course, this is a little troubling for startups, but it might spell opportunity for savvy angel investors.  Startups with scaled back plans (i.e. lets not raise $5MM, but lets see what we can build with $1MM instead) may be able to find angels who were previously priced out of the startup game to fund their ideas.  I like scarcity, I think it makes the gems easier to find.  All to often when there is easy money it becomes increasingly difficult to find good deals, or when you do they are simply too expensive (i.e. they skip seed stage). Of course, I think this positions our Angel/Entrepreneur meet-ups in a strong position in 2009.  I have had several very positive conversations about the idea and I think we are making some fast progress.  Hopefully I will have more to report when I return from Vegas next week.

Written by Alexander Muse · Filed Under Blog, Venture Capital 

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