February 21, 2010

Right Side Capital made a bombastic announcement just a few hours ago at the Future of Funding event by TheFunded. They announced they will do 100-200 seed investments a year! No angel, angel group, incubator or seed VC has ever done that many deals per year – read more on TechCrunch. They will start accepting applications in mid-2010 and they claim the process will be simple, with a web-based form submission and you getting a response in a couple of weeks.

For several years now, I’ve been talking to any angel or VC who would listen to me that we need more startups, however most of them pushback saying that we need less startups with better quality. Right Side Capital just agreed with me: quantity on the short term will lead to better on the long term.

Imagine how many people could not bring their amazing idea to market because they were short by a few months and needed to get back to work, or they were working part-time and should have been full-time. Angels and VCs, for the most part, are disconnected from the realities of being an entrant entrepreneur. Even Angels that are current entrepreneurs forgot how hard it was on the beginning.

Yes, you could claim the obstacles entrepreneurs have to overcome like a natural selection process will be the ones creating the best companies. I call it baloney. There is a lot that happens on life. A sick parent, a new kid, a new spouse, a divorce, a health issue and many other things that have nothing to do with “having what it takes to be an entrepreneur”, but can completely derail an entrepreneurs dream because of a lack of support, including money.

I absolutely applaud Right Side Capital. They are disrupting the angel investment industry in a single move like no one has done before.


 
The Author
Marcelo Calbucci
Co-founder & CTO at EveryMove. Founder of Seattle 2.0.
Company: EveryMove
Twitter: @calbucci
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