Angelgate

The scandal began in September 2010 after Michael Arrington, editor of the TechCrunch publication, wrote in his blog that he had been turned away from a secret meeting among so-called "super angels" he knew,{{cite news|publisher=Wall Street Journal|url=https://blogs.wsj.com/venturecapital/2010/09/24/the-daily-start-up-angelgate-escalates/|date=September 24, 2010|title=The Daily Start-Up: "AngelGate" Escalates|author=Russell Garland}} held at Bin38, a wine bar in San Francisco's Marina District.{{cite news|publisher=San Francisco Chronicle|title=AngelGate meeting scandal gives Bin 38 lots of free publicity, punchlines, and a Hitler parody.|author=Paolo Lucchesi|url=http://insidescoopsf.sfgate.com/paololucchesi/2010/09/24/angelgate-meeting-scandal-gives-bin-38-lots-of-free-publicity-punchlines-and-a-hitler-parody/|date=September 24, 2010}} The participants at the meeting, among other things, discussed how they could compete with other angels, venture capitalists, and the Y Combinator business incubator for the limited pool of worthy investment opportunities.{{cite news|title=Paul Graham of Y Combinator Pulls Back the Curtain on What Goes On At His Start-Up Factory |first=Leon |last=Neyfakh |date=September 28, 2010 |url=http://www.observer.com/2010/media/paul-graham-y-combinator-pulls-back-curtain-what-goes-his-start-factory |publisher=New York Observer |url-status=dead |archiveurl=https://web.archive.org/web/20101003031222/http://www.observer.com/2010/media/paul-graham-y-combinator-pulls-back-curtain-what-goes-his-start-factory |archivedate=October 3, 2010 }} Arrington said that after the meeting, he had been informed by two of the attendees that the investors had discussed how to fix low valuations for new start-up companies, and how to keep better-funded venture capitalists from investing.{{cite news|publisher=National Post|url=http://business.financialpost.com/2010/09/23/fp-tech-desk-the-secret-rulers-of-silicon-valley/|date=September 23, 2010|title=The secret rulers of Silicon Valley|author=Jameson Berkow}}

The blog became the subject of discussion among the Silicon Valley start-up community over the next several days.{{cite news|publisher=BBC|url=https://www.bbc.co.uk/blogs/thereporters/maggieshiels/2010/09/angelgate_-_a_tech_conspiracy.html|title='Angelgate': A tech conspiracy?|author=Maggie Shiels|date=September 23, 2010}}{{cite news|work=New York Times|url=http://dealbook.blogs.nytimes.com/2010/09/22/a-quiet-angel-investors-dinner-turns-noisily-public/|title=After Quiet Dinner, Angels Get Indigestion|date=September 22, 2010}} Investor Ron Conway, whose business partner attended the meeting, wrote an email highly critical of the angels involved and called the event "despicable and embarrassing".{{cite news|publisher=San Francisco Business Times|url=http://sanfrancisco.bizjournals.com/sanfrancisco/blog/2010/09/ron_coway_slams_super-angels_hard.html|title=Ron Conway slams 'super angels' hard|author=Patrick Hoge|date=September 23, 2010}} Dave McClure, a well-known angel present at the event, wrote in a blog that Arrington's account was inaccurate, and a tweet (later deleted) complaining about Conway.{{cite news|title=Showdown! Angels, Arrington to Go Mano a Mano|url=https://www.reuters.com/article/idUS196786161120100925|archive-url=https://web.archive.org/web/20100928014544/http://www.reuters.com/article/idUS196786161120100925|url-status=dead|archive-date=September 28, 2010|publisher=Wired Magazine|author=Ryan Singel|date=September 24, 2010}} Chris Sacca wrote a lengthy email that defended the participants and was critical of Conway, which was also leaked to TechCrunch.{{Cite news |publisher=TechCrunch |url=https://techcrunch.com/2010/09/26/angelgate-chris-sacca-responds-to-ron-conway/ |title=AngelGate: Chris Sacca Responds To Ron Conway |author=Michael Arrington |date=September 26, 2010 |accessdate=5 June 2013}}

Reports arose that the United States Federal Bureau of Investigation began reviewing the incident.{{cite news |publisher=San Francisco Business Times |author=Patrick Hoge |url=http://sanfrancisco.bizjournals.com/sanfrancisco/blog/2010/09/fbi_reportedly_looking_into_angelgate.html |date=September 23, 2010 |title=FBI reportedly looking into Angelgate}}

There was skepticism that there was actually any collusion or that price fixing could succeed if it was attempted.{{Cite news|publisher=Fortune Magazine|title=Super-angels have dinner, all hell breaks loose|author=Dan Primack|date=September 22, 2010|url=http://finance.fortune.cnn.com/2010/09/22/super-angels-have-dinner-all-hell-breaks-loose/}}{{Cite news|publisher=Daily Finance|date=September 24, 2010|url=http://www.dailyfinance.com/story/angelgate-or-not-controlling-the-market-in-hot-startups-is-impo/19646924/|title=AngelGate or Not, Controlling the Market in Hot Startups Is Impossible|author=Alex Salkever}} The event also gave rise to various online cultural phenomena. Among other things there was a flash mob at the wine bar, a Hitler Downfall parody, a spike in the establishment's Google rank, a number of Twitter jokes, and so-called "fakeplans" for super-angel meetups on the site plancast.com. On Monday, September 27, 2010, Ron Conway, Dave McClure, Chris Sacca, and others appeared at a panel discussion hosted by Arrington at his "TechCrunch Disrupt" conference in San Francisco{{cite news|publisher=New York Magazine|title=How Michael Arrington's School of Friendship Journalism Led to 'AngelGate'|date=September 27, 2010|url=http://nymag.com/daily/intel/2010/09/techcrunchs_michael_arringtons.html|author=Nitasha Tiku}}{{cite news|publisher=Wall Street Journal|url=https://blogs.wsj.com/venturecapital/2010/09/27/angelgate-players-come-face-to-face-but-fireworks-are-few/|date=September 27, 2010|author=Tomio Geron|title='AngelGate' Players Come Face To Face, But Fireworks Are Few}} where, despite Arrington's prodding, they avoided a "Jerry Springer moment".{{cite news|work=Los Angeles Times|url=http://latimesblogs.latimes.com/technology/2010/09/angelgate-disrupts-techcrunch-conference-but-no-jerry-springer-moment.html|date=September 27, 2010|author=Jessica Guynn|title='AngelGate' disrupts TechCrunch conference but no 'Jerry Springer' moment}}

{{reflist}}

• [https://techcrunch.com/2010/09/21/so-a-blogger-walks-into-a-bar/ "A blogger walks into a bar"] - Arrington's blog entry
• [https://techcrunch.com/2010/09/23/ron-conway-angel-email/ Subject: Super Angels Gathering] - Ron Conway's letter (reproduced in TechCrunch)

Category:Anti-competitive practices

Category:History of the San Francisco Bay Area

Category:Economy of the San Francisco Bay Area