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Recently, we’d asked What is a Super Angel? and then profiled 14 “super angels” (aka micro venture capital firms) and what industries and geographies they invest in. One of the super angels we’d chronicled was Roger Ehrenberg’s IA Ventures.
In a recent thoughtful post, Ehrenberg agreed with Mark Suster (GRP Partners), Ron Conway (SV Angel), David Rose and others who think the super angel moniker is more marketing than a useful designation.
Btw, if you run LP money you are a VC, not an angel. The super angel moniker simply makes no sense. I was an angel investor for five years and have been a VC for almost one. VCs have fiduciary responsibilities as it relates to due diligence, portfolio management, record-keeping, Board seats, etc. Not a trifling matter. These new small VCs are generally leveraging the cheap costs of compute and storage to inexpensively test ideas and validate business hypotheses. This is something truly new that has evolved rapidly over the past five years.
With regards to the good for pageview generation super angel vs. venture capital nonsense, Ehrenberg offers the following about the impact of micro venture capitalists (aka super angels) on VCs.
But its effect on the venture investment landscape has been blown totally out of proportion. While the cost to validate/invalidate nascent businesses has without question plummeted, the cost to build out and scale these businesses are as high as ever. Twitter. Facebook. Zynga. Etsy. It doesn’t matter. Most successful web businesses take substantial amounts of capital to grow, and it is a total myth that VCs as capital providers and business builders are obsolete. In fact, they are more necessary than ever as deal velocity has increased as more successful ideas can be validated at a more rapid rate.
So is the term super angel on its last legs? Time will tell. But if you’re an entrepreneur building the next great thing, all this drama doesn’t really matter, right?
BTW, if you are an entrepreneur seeking funding, try our free Funding Recommendation Engine to identify a list of angels, venture capital and state grant programs that best fit with your business. Get started here.