So let me get this straight, you call yourself an angel, but you’re investing limited partners’ money…doesn’t that just make you a small, early-stage VC? And if you’re successful, don’t you just raise a bigger fund and hire more partners, looking a lot more like an early stage VC?
In day two of our David v. David/ Super Angel v. VC SMACKDOWN, even Dave McClure admits “Super Angel” is a flawed term. But he insists there’s still a difference between what he does and what David Hornik does as a partner for August Capital. And, he insists it’s a better way to make money and the future of investing in the consumer Internet.
We also tackle the thorny topic of “value add.” Can an investor who doesn’t have operating experience really add value to a startup, and is “worked at Google” or “worked at PayPal” equal operating experience to starting, running and exiting a successful company? In old days, angels were known for deeply mentoring their portfolio companies, but how do you mentor when you’re investing in 500 startups?
For the first segment in our series, on why there’s so much smack-talking between these two groups that ostensibly need one another, go here. We warned you yesterday about the NSFW language and that warning still holds.
Loving the videos and want to catch the live version? The Davids are debating at Orrick’s offices this Friday as well.
Dave McClure is a venture capitalist & the founding general partner at 500 Startups, an internet seed fund and startup accelerator program in Mountain View, CA. Dave has been geeking out in Silicon Valley for over twenty years, and has worked with companies such as PayPal, Mint, Founders Fund, Facebook, LinkedIn, SlideShare, Twilio, Simply Hired, O’Reilly Media, Intel, & Microsoft. He also likes to play ultimate frisbee when his knees don’t hurt. Dave has been an investor in over 100...
David joined August Capital in 2000. He invests broadly in information technology companies, with a focus on enterprise application and infrastructure software and consumer facing software and services. Prior to joining August Capital, David was an intellectual property and corporate attorney at Venture Law Group, Cravath Swaine & Moore, and Perkins Coie LLP. In his legal practice, David represented high tech startups in all aspects of their formation, financing and operations, including Yahoo, When.com (AOL), Sonique (Terra Lycos), Pure...