There’s no question that most start-ups need a financial boost to get going. Loans from family and friends typically don’t go very far, so enter venture capitalists and angel investors. But like any other business arrangement, these partnerships can present challenges, such as how much of an investment an entrepreneur should expect from an outside party and how much control the investor gets in return.
In this week’s edition of The Exchange, we ask: Are Boston VCs and Angels generous enough with their investments? Or does the current level of giving fall short of helping a start-up stand on its own two feet?
— Jeff Fagnan , a partner with Atlas Venture, says local VCs and Angels have backed away from the investing practices of the “dark ages” and have created a strong ecosystem for entrepreneurs that fosters collaboration and mentorship.
– Jean Hammond , co-founder of LearnLaunch.org, says Boston’s VCs and Angel investors are too stingy and that the region risks losing locally-based start-ups to places like New York and California if it does not change its practices.