Esther Dyson: Some angel circuits are ‘very self-referential’

Esther Dyson posing with Buddha

Esthr | Flickr via Creative Commons

Interesting quote from health technology angel Esther Dyson on investing with the pack.

The online private equity news site, peHUB, recently interviewed Dyson about women angel investors. This remarkable bit of candor especially stands out:

peHUB: Including the most promising startups? It often seems like entrepreneurs try piecing together a Who’s Who of angels when syndicating their deals.

Well, first, I’d argue that the most “promising deals” are … overpriced. I think the most promising deals are those that aren’t the video sharing sites, or the Paths or the Colors or the ex-Facebook buddies who are getting a $20 million valuation on the basis of nothing.

There’s this presumption that you need to be part of that circuit, and I think that crowd is very self-referential and missing the truly interesting companies. Later on, you want your deals to be famous, but you do better if you don’t pile into what are perceived as the “best” deals.

True? False? Somewhere in between?

Read the entire interview at peHUB.