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October 13, 2009
Stop whining Jason and get back to work
Jason Calacanis is being a big fat whining idiot complaining about Angel group screening fees.
Presenting at an Angel group is not a fundamental human right. There are costs to running these organizations and they are not monopolies. Angel groups tend to have to charge because they don’t get a management fee on a committed capital base like a VC does (that is why VCs can hear pitches for free). These fees are their only offset to their costs. For profit angel groups are just that, for profit. Providing a product/service for a cost. If you don’t like the product/service, go somewhere else. Entrepreneurs are not required to present. No entrepreneur is being discriminated against because there are fees. There are plenty of angel groups who don’t charge or who charge very minimal fees and operate as non-profits. Entrepreneurs can use their personal networks to bypass Angel groups all together! In the end if the cost of capital is too high, the entrepreneur should go somewhere else. In tough economic times the cost of money goes up (interest rates, tough getting loans, fees, etc.). We are in a tough economic time. Angel financing is a very inefficient market and the cost of providing liquidity in that market has gone up as well as the risk tolerance of investors has gone down. Given these facts, the cost of enabling the market of buyers (Angels) and sellers (entrepreneurs) is going to rise.
Next will you be telling us that Investment Banks should provide IPO services for free and Mutual Fund managers should not be paid for their work.
There is no fundamental right to easy, free access to venture capital or angel capital. There is no fundamental right to certain terms in a term sheet. It is all buyer and seller meeting in the marketplace. Capitalism works. Stop being stupid.
Stop whining and get back to work.
Posted by Martin at October 13, 2009 9:58 AM
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