There was a time when you couldn’t enter a coffee shop in Southern California without seeing somebody working on a screenplay. Times have changed. Now you can’t enter an espresso joint without hearing a startup team planning a launch. Not only are more people getting into the startup game, but the roles are changing faster, particularly among those who support startups financially. Keeping track of who is an angel, who is a VC, and who belongs to what investor syndicate is getting complicated.
Ben Thompson, writing in stratechery.com, says angels have just about replaced venture capital at the seed stage, “which means they are the first to form critical relationships with founders.” Angel investing is where the magic happens for founders. Angels are the first money in.
“There is a huge disparity between what people think angels are and what they actually are,” says Kevin Dewalt. He is an angel investor. He has done give deals in four different companies in the past two and a half years worldwide, notably and recently in Collabspot. He was among the very first investors in Sampler, using his own money to invest.