If you haven’t already, go read Mike Arrington’s story about how he barged into a secret meeting of Silicon Valley’s super-angels and discovered that the angels were discussing how to screw traditional venture capitalists and entrepreneurs, the latter by pushing down the prices of early-stage deals.
As Mike rightly points out, in other industries, such behaviour is known as “price fixing” and “collusion” — and it’s illegal.
Mike does an excellent job body-slamming these folks on his own, however, so we won’t steal his thunder.
We do, however, want to tip our hat to Mike for his story (it’s great) and his, well, balls. It’s this sort of work that makes this new form of journalism so valuable and fun. It’s also the type of work that would make the tech industry barely notice if the mainstream media just rolled over and died.
As Mike observes, many of the folks he calls out for this meeting are friends and sources, some of whom will undoubtedly be furious at him for exposing their little game.
It takes balls to lob a grenade at your friends like that. It also takes finesse and skill (and power) to do it and still have many of those folks rushing to call you after the meeting to preserve their relationships with you.
TechCrunch has become the most important tech publication in the world because the team’s hard work day-in, day-out has made it a font of information and the industry water cooler. But bold, startling moves like this have also helped. And no one’s better at them than Mike Arrington.
(PS: Mike didn’t name names, so if one of the angels in the room would be so good as to send us a list of all the angels in the room, we’ll go ahead and publish it. We might as well get this all out in the open. And in the interest of fairness, we’d be glad to publish the other side of the story — if there is one.).
Business Insider Emails & Alerts
Site highlights each day to your inbox.