The last myth we will explore is the idea that angel investors must be organized. There are examples of effective angel groups, but there are many more examples of ones that are merely a way for wealthy individuals to get together on a periodic basis and torture entrepreneurs. In the following section, Paul talks about the value of organized angel groups and why they are neither necessary nor sufficient for startup communities.

There is about a 50/50 chance that when I first meet a new angel investor in almost any city they will tell me a horror story about their local angel investing group. They may tell me about how they went to a couple of meetings, and stopped. Why? It takes too long, they’ll say. These angels never write checks, they will complain. I can’t take all the process, they’ll say.
Most startup communities feel like they aren’t complete until they have at least one angel investor group, one that meets regularly, screens companies, see pitches, and then, after group deliberation, invests individually in young companies. It is easy to see why they’re so appealing as so much startup activity happens under the radar in coffee shops, garages, and online. Having an organized angel group that meets regularly and sees startups is an obvious sign that you are doing things to foment a startup community.
Great angel investing organizations exist all over the United States, and around the world, and they have invested in many great companies, ...

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