The venture capital industry is facing real competition for the first time in decades. Not only that, but the growing battle between venture capital firms and “super angels” presents an amazing opportunity for entrepreneurs trying to build the next big thing.
All of this is according to Paul Graham, co-founder of the early-stage investment fund Ycombinator. During a presentation at Startup School at Stanford University earlier today, the prolific investor discussed the state of startup funding with a packed auditorium of students and entrepreneurs. Specifically, he said the funding world has been turned upside-down.
So what’s causing this fundamental shift? The answer is the rise of super angels, Graham said. He explained that startup funding used to consist of relatively small angel investments ($20,000 to $50,000) from individuals or multi-million dollar investments from venture capital firms. In the middle of that was a gaping hole.
To read the full, original article click on this link: Venture Capitalists, Super Angels and the State of Startup Funding
