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This Week’s Best Reading
The Valuation Trap
As Matt discussed in this week's essay, Square and Box are examples of private companies whose sky-high valuations are coming back to bite them. Fred Wilson of Union Square Ventures offers his take here.
Start-Ups Draw More Angel Investment
Angels are investing earlier and earlier in a start-up’s life cycle. Is that where the juicy returns are hiding? See all of the data here.
One Congressman's Cure for the “Six Deadly Sins” of Crowdfunding Regulation
U.S. Congressman Patrick McHenry introduced a draft bill last week that can only be described as visionary. Whose team is this guy on? Read about it here.
Crowdfunding, The Banks and Wall Street
If there’s one sure thing about the still-to-be decided crowdfunding rules, it’s this: a lot of parties are nervous as you-know-what about them. Get the whole story here.
Billions Not Required for Angel Investing
Is this a finance article or poetry? “A rational person can be an investor and not a gambler.” And: “Ninety percent of the money I ever made as an angel investor came from four investments. It’s the gambler’s mentality mitigated by the ability to select intelligently.” Read the whole wonderful piece of poetry here.
Seed Investing Gets Personal
Angel investor Keith Nowak says: "As a seed investor, deciding to invest or pass always comes down to one thing… do you believe that the founder can pull it off? There is just one data point."
Vurb Wins TechCrunch Disrupt NY 2014
Fred Wilson wasn't a fan, saying: "This problem is a bitch, you won’t solve it, and it will kill you." Another mega-VC disagreed. So why did it take the prize? See why here.
The Online Future of Late-Stage Capital Markets
Today, most equity crowdfunding is focused on the $1 million-and-under early-stage opportunities. Is the market ready to handle $5 million and $10 million transactions for later-stage deals? This person thinks so.
The Challenge Facing Bitcoin Start-Ups
It Bitcoin ready for its close-up? If it focuses where fees are high, consumers are underserved, or infrastructure is weak, it sure has a shot. Read more here.
