ReadWriteStart

What entrepreneur hasn't dreamed that our startup will experience the same magical beginnings as Google? In 1998, before they even incorporated, Google founders Sergey Brin and Larry Page were trying to present their concept to early-stage, or "angel" investors, with limited success. Sun Microsystems co-founder Andy Bechtolsheim was one such angel. He didn't have time to listen to their whole pitch, but wrote them a check for $100,000 anyway.

Alas, most companies don't have so easy a time. There are ways to attract these rare and beautiful creatures. You just have to know what they're looking for.  

Over the weekend there has been some controversy surrounding AngelList, the network that connects startup entrepreneurs and investors. Before AngelList, investment dealflow was private and networks revolved around a few connected angels and VC?s. Since the angel network was created, transparent angel investing has exploded and entrepreneurs from any background can get funded.

To my surprise, VC? Bryce Roberts, a partner at O?Reilly Tech Ventures, was so concerned about the network that he deleted his AngelList account. In his post, Roberts says he was not turned off by the quality of startups, but by the investment philosophy pushed by the service. The predominate philosophy pushed by the service, he said, favors a light-touch investment style similar to throwing darts on a board, as opposed to a more concentrated approach.

Though rising numbers from the final quarter for 2009 had many hopeful that 2010 would see a rebound of venture capital funds, new data from the Nation Venture Capital Association (NVCA) is bound to disappoint as Q1 2010 saw the lowest first quarter numbers (PDF) in 17 years. According to the NVCA, just $3.6 billion has been raised so far this year by VCs compared to $5.2 billion in 2009 and $7.1 billion 2008.