I appreciate Penchinas thoughts but its getting rampant on AngelList that leads (Penchina included) put in tiny amounts of money in ($1k) and then require their backers to put in 5x more to participate. With the standard carry terms (20%)
Even that's okay but then companies are dressed up hard to attract a quick investment draw. When it's largely a cheap lottery ticket for the lead.
VC is broken and AngelList allows more exposure to startups but this isn't a good thing.