A Wake-Up Call for Angel Investors

Sramana Mitra12/28/12Follow @sramana

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[Editor's note: To tap the wisdom of our distinguished group of Xconomists, we asked a few of them to answer this question heading into 2013: What does your gut tell you will happen in the coming year even though you don’t have data to prove it?]

Mindless angel investing in unvalidated ideas will get a jolt. Over 100,000 startups have received small amounts of drip financing, and less than 1 percent have managed to get Series A funding. This tells me that there are a lot of angel investors out there who are facing write-offs of their hard-earned money.

Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs globally to reach $1 million in revenue and beyond. She is a Silicon Valley entrepreneur and strategy consultant, she writes the blog Sramana Mitra On Strategy, and is author of the Entrepreneur Journeys book series and Vision India 2020. From 2008 to 2010, Mitra was a columnist for Forbes. As an entrepreneur CEO, she ran three companies: DAIS, Intarka, and Uuma. Sramana has a master’s degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Follow @sramana