Just read a very interesting post from First Ascent Ventures blog providing some early data on how early stage funds are doing.
I am convinced that early stage funding models like YCombinator and others do work, and with this data we can get a feel for it. The key now is to fine tune the process to find the right balance between the value to entrepreneurs and the return for investors.
I started Entrepreneur Commons to bring yet another option for entrepreneurs, there is also no question in my mind that this type of model is a much needed change in the funding process today. And I was happy to see that Reid Hoffman thinks the same - see his article "Let Our Start-Ups Bail Us Out" in the Washington Post.
The good news is that Angel investment was approximately $20B in 2007 from the numbers I have seen, so now that data is starting to document that the model works, it can attract substantial amounts of money for real change.
2009 is looking like a good year so far :-)
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Monday, March 16, 2009
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