It's still
early of course, but Andreessen
raises a thought - provoking point: The rise of the super angel may be helping to create a culture in which the mid-sized acquisition is celebrated — and the big ideas and billion - dollar
exits are scant.
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).