"But the idea that an uptick in angel-backed companies will result in fewer huge successes is just..."
Rick Webb
Co-founder, COO : New York
topics: Internet Culture, Process, Social Media, Measurement and Analytics, and Internet Culture
http://tbg.cm/gAFP1t
“But the idea that an uptick in angel-backed companies will result in fewer huge successes is just silly. Yes, it’s possible that angel-backed companies are happier with smaller exits than their VC counterparts. But if the VCs see an opportunity there to become the next Google, they’re more than welcome to buy the company themselves: they certainly have $25 million lying around to do just that. More realistically, VCs can certainly take over as and when original investors feel like cashing out, just as public stockholders take over when VCs cash out in an IPO.”
Haha. Yeah. That would be awesome. But that does not seem to happen. So far as I can tell is that the new investors basically invest in the company, take a shit ton of equity, dilute the angel’s share, and tie the angel to their liquidity plans.
I mean, I suppose this COULD happen, but one rarely hears of VCs buying the angel’s shares out for a good, exitable amount, and taking up the mantle.
_
Originally posted at http://rickwebb.tumblr.com/post/985108781
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