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A "small-time investor" (diegobasch.com)
56 points by nachopg on May 18, 2012 | hide | past | web | favorite | 16 comments



Well as long as nobody invents 'brovesting' I'm ok with it. :-)

I understand that many people have a connection between 'angel' and 'charity' but I've always equated the angel in angel investing with 'guardian angel' which is someone who can see more of the hazards facing the team and give them a heads up or a nudge when one of those comes close to being a 'problem.' This isn't charity, it is providing a heads up sort of service.


I know Diego personally and can speak from experience that he's the sort of person that will help you more than most "angels" out there would even if they tried (most don't/can't; spray-n-pray is still in full swing out there, folks!)

Maybe we need a new label that identifies people like him. I'd like to believe that I would qualify for whatever it is that we come up with as well, but others need to decide that.

For many of the same reasons he so eloquently described I've avoided using the "angel" term like the plague, even if some people need the quick epithet to summarize where you fit in this crazy world of ours.

The so-called democratization(/crowding?) of funding is going to bring more, not less, of these types of dumb-money checkbook swinging people out into play. It will end in tears for many, but as long as we are all adults about it, and we don't place those bets with large pools of money that should be directed to a different asset class like fixed income for pension funds distributions, we'll survive yet another period of frothiness and call it a day while we wait for the next one to materialize.

There is no central bank that plays with the valuations of things (ie. price controls) in the startup ecosystem, and that's a great thing, mind you. Yet as long as IPOs like $FB today return not 1 but 3 VC funds in one large swing for the fences, we are all going to be playing this game here for a while.

Pick a side, enjoy the game and don't hate the player but the game (while you try to change it if you can!) We can all thank PG for some of the most recent changes, and blame him for the unintended consequences of his particular version of the reality distortion field.


Thanks Juanjo for the kind words. Completely agree regarding the game, and the rules are already changing. It's interesting that the same technologies that enable new kinds of startups also enable new investing models. I guess we all like change when it works in our favor, not so much when it's against us :)


The "angel" in angel investor is how you're seen by the company you're giving money to. It fits in a tight funding market, although it may not seem to fit now that the market is so liquid.


When I've raised funding I didn't see angel investors as "angels." I wasn't asking for favors. My company wasn't a charity. I wanted investors who believed in what we were doing, not some uncle with money who might think he was being magnanimous.


Great to see that there are humble people like this out there. I'm not even really in the field but the term 'angel investor' has always struck me as really self-inflating. If there is anyone who is 'angelic' it is the people doing the hard work. Why not just 'seed investor'?


Maybe an "initial" investor, or an early-stage investor. "Small-time" seems derogatory.


It's intentional. I need to keep my ego in check, and remember that I'm only supporting cast. The entrepreneurs are the protagonists.


I just don't know if I could muster the cojones to refer to you as a small-time investor in your presence (I'd have the decency to check that you're not around first).


How about micro-vester?


How about "Investor of reasonable sums"?


Low five figure investments ? You seem pretty angelic to me. Us mere mortals don't have that kind of ca$h bro!


Most people who work in Silicon Valley for a while can afford to make a few small investments like that if they choose. Others buy a nice car, or whatever. It can be seen as an expensive hobby. Many angel investors are regular working guys/gals.


I'm curious as to how you make such investments though. I thought the rules were that you either need to have net worth > $5MM or a household income of over $300k/year. Those are from the SEC website and I'm not 100% sure of whether they apply to everyone or just on second market. (I guess contract investments work otherwise..)

If those numbers are right then that still does sound out of reach. Though to be honest, $100k per investment also sounds out of reach to me but I haven't had any big silicon valley payouts.


The > $5M is for entities, there's also "a natural person who has individual net worth... that exceeds $1 million"

and

"a natural person with income exceeding $200,000 in each of the two most recent years"

http://www.sec.gov/answers/accred.htm


You can also invest in startups as an unaccredited investor, with some restrictions. I know those laws have been revised recently.

http://www.quora.com/Investing/What-are-unaccredited-investo...




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