A Wake-Up Call for Angel Investors
[Editor’s note: To tap the wisdom of our distinguished group of Xconomists, we asked a few of them to answer this question heading into 2013: What does your gut tell you will happen in the coming year even though you don’t have data to prove it?]
Mindless angel investing in unvalidated ideas will get a jolt. Over 100,000 startups have received small amounts of drip financing, and less than 1 percent have managed to get Series A funding. This tells me that there are a lot of angel investors out there who are facing write-offs of their hard-earned money.