Why does everyone think they should be angel financed?

Imgres-1Are we going to see angel financing change in 2013?  This is a topic that I have written about before and I keep thinking about how financing in general is going to tighten up in 2013. What exactly does that mean for the first round of angels.  Obviously time will tell but here is what is rambling around in my head.

In the past six months I have seen business plans from every industry and that includes consumer products, clothing manufacturing, technology, real estate projects, incubators, social apps in third world countries, legal help online, farm to table, etc.  You get the point.  

My question is why does everyone think they need to be angel financed?  I am a big believer in building the product first, getting some traction and proving to the investor community that there is a business model there that will make the investors their money back and more.  I have invested in many of those companies.  It is certainly a risk no matter which way you cut it but at least there is some data that is appealing.  

As an investor I really do think about the big picture.  Does this product make sense?  Does it fill a void in a marketplace?  Do I see this as a company with potential to grow?  There are so many companies that I see who have been funded that I am pretty damn sure are life style businesses not businesses that should be taking investors money unless of course it is friends/family or one strategic person.

What is going to happen in 2013?  I hope the funding doesn't stop but I hope that angels become more focused (like the VC world will become).  It is time for more people to do a little more boot strapping before they go out looking for cash.  

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