Insights and Opinions: The Problem with the Super Angels

For today's Insights and Opinions section today, we have a post from Jim Armstrong, Managing Director at Clearstone Venture Partners, who talks about some of the issues behind the super angel trend.

There is a lot of talk these days about the growing number of angel funds and super angel funds, that is funds that quickly invest 250k to 2MM (roughly) into a company and remain very hands off. To be sure these super angel funds do indeed properly fit into the new trends around company creation. At Clearstone, we have also launched a super angel fund and strategy.

What I worry about is the path that most companies take to success and the staying power of this capital. In my 15 years plus in venture I can think of only two portfolio companies, Overture ( and Rubicon, which were able to flawlessly hit their launch plan. Overture pioneered the pay for placement search market and raced to $100MM in revenues. Rubicon hit the market just right with a publisher centric advertising solution. Otherwise, all of our other successes, a dozen IPOs and an equal amount of large M&A exits, took a very crooked path to success. (More...)

Read the rest of Jim's article on the Problems with the Super Angels.

posted on Wednesday, January 12, 2011

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