Saw Paul Kedrosky’s post over on Techcrunch, and had to respond. I wonder what or if the Kaufman Foundation is doing around research where real time web’s impacts the venture and entrepreneurial process?

Here is my ANGLE on Venture Capital and the entrepreneurial process:

I have a graduate degree in entrepreneurship and have been an entrepreneur for 13 years. It needs to be said for the record that venture capitalists are (and have been) a very important part of the entrepreneurial system. I also live in Palo Alto where you can’t swing a dead cat without hitting a venture capitalist. Knowing many venture guys/gals and being close friends with many, I’ve seen and heard from them what concerns them. Here are my observations on what’s going with venture from my position here in Silicon Valley.

Here’s the bottom line on venture capitalists: most are very good and some really suck. The ones that really suck give the other ones a bad name. This isn’t new news – it’s been like that a long time. However, what’s different today is that the market forces and lack of personnel in the venture community has changed the game at the zero and early stage and opened the door to new entrants – mainly outside Silicon Valley.

Wrong: “It’s the Market , not the Classic Venture Capitalists.”

The biggest issue today is that not all the venture capitalists are equipped with the right data to evaluate and fund startups at the zero and early stage. Specifically the angel and Series A market. The nature of the market forces is changing the “proxies” of what a good deal is. The slow old process is outdated.

Everything is faster at the early stage. Just look at the real time web, twitter, incubation centers popping up all over the United States (YCombinator, TechStars, siliconANGLE Labs, and many others) and around the world not just Silicon Valley. Also we are seeing a developer boom right now and new markets are emerging.

It’s a great time for startups, yet venture is somehow still struggling?

New Breed of Early Stage Venture Capitalist is Emerging

A new breed of folks who understand this world will fill the void. That is why we have a siliconANGLE’s venture lab. Additionally, you can look at guys like Dave McClure at Founder Fund – he’s having a blast. True Ventures, Jeff Clavier, 1st Round Capital, and others are all doing some notable work.

These are folks in the trenches who not only understand the new environment, but use the tools available to be “real time venture capitalists”. Information is the key resource for early stage deals. Now the market has changed, and it’s not an inside-baseball market – it’s open. It’s one of the main reasons why I started siliconANGLE.

The one common trait about venture that will never change is that it’s all about people – the entrepreneur. Quality people will do well. As the saying goes in venture – “invest in A Players because they chase A market opportunities.” It’s Real Time Venture Development.

With quality people at the center of the Real-time equation, the new model for venture development is about being open and leveraging data for real time decision making to rapidly invest and build ventures. It’s a speed game. It’s a big opportunity. No one has cracked the code on this yet.

I was speaking to an early stage venture capitalist the other day and I said “if you’re slow, you’re screwed when it comes to getting the best early stage deals.”

Real Time is an opportunity to scale the problems in the angel and early stage investment cycle.