Angel investors often see companies with technology that is, what is sometimes fondly referred to as, on the ‘bleeding edge’.
Bombarded with new technologies it is sometimes difficult to keep track of the trends in the market, what is hot, what is over-hyped, and what was obsolete before it even made it to market. In the ICT space this is especially true.
The Gartner Hype Cycle, I find, is rather useful in that it looks at technologies and charts those that ate hyped versus those that are overhyped versus those that are being widely adopted in the mainstream, something Angels have to judge on a regular basis.
Of course this is an older version of the Hype Cycle, but I think it interesting. Though I have not found any studies that directly relate the speed at which a technology crosses ‘Trough of Disillusionment’ to the amount of capital it might take to cross the ‘Valley of Death’ I think the two would be highly correlated.
Just another thing for companies and Angel investors to think about as they conduct their due diligence.
