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The massive cash reserves of Google, Apple, and Microsoft are good news for startups.

Good news for some startups. Not any that are looking for investors. At that average acquisition price, most investors would be disappointed.

Not really. For VC's perhaps that is the case, but for angels: $1 MM raised at a $3 MM pre, 2.5 years of work, and a (let's say) $12 MM median sale price? I think everyone is decently happy.

This model fits with the ever-shrinking capital requirements to launch a tech company. Conversely, portfolio strategies that rely on huge exits (and huge investments) are increasingly threatened.

But if $12 MM is the median sale price, then the risk no longer makes it worth it, especially with so many >= $5m valuations at the moment.

$1M at a $3M pre with a $12M acquisition means I'm getting a 3X return on my investment. Now that's certainly better than losing it altogether, but I think almost all angels would admit they'd be pretty disappointed in that outcome.

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