AngelGate

Angel collusion: It's not necessarily a bad thing

September 29, 2010: 1:40 PM ET

Would the start-up world be a better place if some of Silicon Valley's biggest investors worked together?

In the wake of "AngelGate," a lot of heated words, emails and tweets have been exchanged. Did 10 tech super angels convene for dinner in San Francisco last week to discuss how they could band together to fix prices and keep other entrepreneurs out, as Techcrunch reported? Which early-stage investors attended and what did they discuss?

At this point, it doesn't really matter who did what, where, and with whom. But the speculation raises a valid question: What if tech angels -- dare I say the shameful word -- "colluded"? If their intention was to drive away competition, that's arguably illegal. But certain forms of collaboration are not only legal, they could even be beneficial for the parties involved. More

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