The Death of the Angel Investor

Two things lately: For virtually every single round, from early pre-seed to Series B and beyond, I’m constantly asked “do you know any good angel investors?” I don’t know that many angel investors. I’ve informally talked a lot about this in person over the last few months, and I’ve kind of been surprised at how much it’s resonated among VCs, founders, and the angels I do know. I think there’s a lot of reasons for this. The juice and the squeeze For one, the economics have shifted a bit. A lot of the old “superangels” from the 2000s-2010s have realized it’s potentially more profitable to take your 2/20 by raising a small (or big) fund instead of using your own money. The number of solo GP funds and small funds has exploded over the last decade. Many of those were raised during the manic period immediately post-Covid, with 2021 and 2022 vintages getting hit hard. Might cause more than a few to rethink whether venture is the space for them after all. Technology startups themselves have…

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