

The Good, the Bad, and the Ugly of Formal Angel Groups - vantech
http://www.techvibes.com/blog/formal-angel-groups-2013-02-15

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srlake
I'd put forward another downside of angel groups, from the prospective of an
entrepreneur:

Collusion - whether intentional or not.

The mere fact that you're meeting all, or a large percentage, of the possible
investors for your round at the same time, and they all know each-other, the
greater the chance they will be able to dictate terms and the entrepreneur may
have little negotiating power. If one group (as may be the case in Dayton, OH
- I have no idea) makes up a large percentage of local investors, look out!

