A new wave of angel investors is about to descend on startup land. These New Angels are you and I. AngelList will connect us to the market. Equity crowdfunding platforms will broker our deals. And the JOBS Act will make it all legal.
While a relatively uncontroversial prediction, few people have recognized the implications. Perhaps that’s because many view angels as dumb money, or said more delicately VC’s have “consciously outsourced consumer Internet companies’ bad market risk onto the angels” says Benchmark Capital co-founder Andy Rachleff. So implicitly it would be ridiculous to think a less connected and experienced version of angel investor might be a change agent for the entire industry. I agreed at first. Then I looked at the data, and now I can’t shake the thought that the following scenario might actually happen…
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