Are Angels Really Stifling Innovation?

Last week, Tom Foremski http://www.zdnet.com/blog/foremski/are-angel-investors-harming-silicon-valley-innovation/1562 suggested that the angel strategy of commercializing innovations and then rather quickly selling the startups was stifling innovation. In doing so, Tom referenced Max Levchin’s recent blog in which he suggested that while this strategy makes money for the angels, it tends to discourage building breakthrough companies. The implication is that early exits to the buyers such as Google, Apple and Cisco limit the full exploitation of such innovations.

Bill Payne http://www.billpayne.com

Full Story: http://billpayne.com/2010/11/03/are-angels-really-stifling-innovation.html