Ironically, the trend
of companies raising less capital actually enhances the importance
of the initial round buy - in (both
because that initial buy - in becomes less diluted meaning the first round
price was that much more important and
because even if an angel wants to buy up more in later rounds they'll have less
of a chance to do so; I also believe that along with the trend
of companies raising less capital we're also seeing earlier and somewhat smaller average exits — also enhancing the value
of initial round buy - ins as fewer investors are truly swinging for the proverbial
fence).