Southern California has the one of the largest gathering of organized angel investment groups, and a huge crop of startup accelerators: there's only one problem, which is they don't naturally work together. For our Insights and Opinions section today, Steve Reich, an angel investor and advisor, gives his take on the subject in his editorial, The Odd Couple: Angels and Accelerators.
At a recent accelerator event on the West Side, a friendly young founder told me that he had been coached by his mentor not to talk to Angel groups. As a Pasadena Angel, I wanted to be shocked, but I wasnít. The Angel funding process can be arduous. But as a community, we have to figure out how Angels can effectively participate in the development of accelerator-based companies. With the VC ranks shrinking, founders need to tap every source of capital out there. Building ties between accelerators and Angels is a key part of the solution.
The conflict is built in. The entrepreneurs in startups are trained to go fast and run lean. Angels tend to evaluate companies at a leisurely pace, and ask many questions. Itís no wonder Oscar and Felix donít get along. (Continued...)
Read all of Steve's article, The Odd Couple: Angels and Accelerators.