Today's episode explores three ideas that caught my attention:    

1. Angel board representation dropped from 34% to 26% - Despite consistently seeing better returns WITH board representation, fewer angel groups are securing board seats.  
2. Early-stage valuation compression - The gap between median pre-seed ($10M) and Series B ($19M) valuations has shrunk by 3x over the last few years.  
3. Hybrid angel group models write bigger checks - Groups combining both “pure networks” and funds tend to invest larger amounts than pure models.  

I explore these ideas and more with John Harbison, ACA Board Member, Chairman Emeritus of TCA Venture Group, and co-author of the 2025 Angel Funders Report. As a current Angel Capital Association Board member, a contributing author for the comprehensive Angel Funders Report, and a repeat guest of the show, John offers a world-class perspective on angel investing trends and best practices.

During our conversation, John shares: 

• A data-driven framework for understanding how follow-on investment rounds often deliver better returns than initial rounds - demonstrating how risk reduction and valuation timing can create superior portfolio outcomes for angel investors. 
• Specific evidence that board representation increases company success by 8x - including actionable strategies for smaller angel groups to secure observer seats when full board positions aren't available. 
• Practical insights on market cyclicality and capital efficiency during downturns - including strategies for angel investors to adapt their approach when "we're in one of those troughs" of the investing cycle. 

Connect with John 

LinkedIn | Blog

Stuff We Reference 

• ACA Angel Funders Report 
• Dr. Ron Weissman 
• Launchpad Ventures 
• Central Texas Angel Network
• Y Combinator
• Sequoia Capital

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All opinions are personal and may not reflect the views of The Diligent Observer. Not investment advice.