58% of venture capitalists think angel investors over-valuate the starups

94% of venture capitalists recognize the importance of angel investors in early stage financing, 58% said that angel involvement "sometimes" or "mostly" made a company unattractive, according to Center on Entrepreneurial Tech Transfer and Commercialization at George Washington University. The most common reason, according to 78% of venture capital respondents, was "unrealistic company valuation." 65% also felt that angels made negotiation with a start-up more complicated, while 56% felt that angel investors were "unsophisticated" and did not understand what a company needed to attract institutional capital.