App Marketing · Entrepreneur

Are angel groups going to disappear due to the current trends?

Konstantin Voyku QA Engineer at StarOfService

October 19th, 2016

Over the last few years starting a company became much easier than it was in some earlier times. Seems like you just need a decent idea, some marketing skills and to be at the right place in the right time. Of course, some of the startups became successful companies, but most of them failed. This also means that a lot of VC money went to waste. Seems like the VCs are much more careful now than a few years ago, the market is getting saturated with different startups and everybody wants to be an entrepreneur. Therefore, I noticed that some of the angel groups are disappearing. Is it just me or this is becoming a trend?

Steve Getman Executive and business consultant

October 19th, 2016

I doubt they are disappearing, the world is just changing. With the fairly recent proliferation of platforms like Circleup, Seedinvest etc startups will have more choices in where to raise money. Angel groups and VCs provide additional value in my opinion in the form of relationships and expertise that can give startups a better chance at success. You won't get that from a software platform.

As an investor, my concern is that the entry of unsophisticated investors into the space due to the relaxation of crowdfunding rules will create a period of below average returns (most of the deals I've looked at on the above mentioned sites have way too high a valuation or unfavorable terms). This is a risky space and returns need to be high enough to compensate for it. It will be interesting to see how it all unfolds.

Rod Abbamonte Co Founder at STARTREK / @startupHunter / @startupWay / @CoFounderFound / @GOcapital / @startupClub / @lastminute

October 20th, 2016

They will probably become most of them more accurate and professional.