The Super Angel vs VC discussion is still making the rounds: Michael Arrington, Chris Dixon, Dave McClure, Fred Wilson et al. Must be a slow summer for financing news. You take the smartest money you can get that's right for your growth stage and capital needs. That's it folks.
All well and good to talk about taking 100% angel funding until exit for digital companies and sometimes that is the right strategy, but venture capital is required for more capital intensive businesses in life science, clean tech and advanced manufacturing. And even in digital businesses, lots of capital can be required to scale a company and/or prepare for a high value IPO vs going for a quick M&A. We angels need VCs to help carry some of our companies over the finish line. And VCs need angels to do the hard work of getting companies ready for venture funding. Sometimes we have to help them reinvent themselves along the way--the companies that is. VCs are reinventing themselves these days.
The work of an angel investor sometimes reminds me of a summer many moons ago when I worked on an Arabian horse farm. It sounded so glamorous until I realized the bulk of the work after you buy/breed the horses is mucking out the stalls, cleaning up the horses, training them on proper deportment and getting them ready and prettied up for showtime. It took weeks to get my clothes and hands clean. I just threw away my boots!
I'll devote my next several posts to profiling some of the CEOs of my portfolio companies. Some have had all angel, some angel and VC financing. So far, most all of them are doing well. Knock on wood....