And so, can you comment on that and
how that's impacted each addition along the way?
>> Yeah. I mean, get comfortable.
>> [LAUGH] >> Kick back,
cuz we got lots to talk about.
I would say, I'm trying to bucketize this to make it easy to digest and
to make it of greatest utility to your course and to the students.
In phase one, when a few of you might have just been a sparkle
in your parents' eyes, it was a very traditional marketplace.
You had old school thinking around venture capital.
It was you and the venture capitalist.
I remember some of the term sheets I drafted in the late 80s,
it was like, here's your term sheet Michael, and don't ask any questions and.
>> Right. >> Because we have all the power.
>> Mm-hm. >> Of course when we had our,
the tech boom, some of that power shifted
The banks were a good place to go if you had hard assets.
And many businesses in the first edition
that were raising capital still had hard assets.
They weren't the social media and soft asset companies of today.
>> Right. >> So you had the venture capitalists and
you had the banks.
And then there was this disorganized, loose notion of angels.
And many people who were angels,
particularly here in the DC market, didn't even give themselves that title yet.
I mean if you're a cashed out entrepreneur and
you did a few deals on the side, you'd get a few deals on the side.
You didn't need a title.
So that was kind of the state of play in the first edition.
In the second the edition, you see a little bit of pullback by the banks
because they were confused on, you know, how to lend to companies that were
information and data and processes-rich and hard asset-poor.
You saw the beginning of the decline and
chipping away of the venture capital market as it peaked and
then began to decline in terms of traditional venture capital firms.
And you saw for the first time thanks to John May and
others a true organization of the angel market.
The formation of the Angel Capital Association, more and
more angel groups being formed both locally and across the country.
And, so angels, all of the sudden, took a more prominent in the second edition.
Venture capitalists maybe ever so slightly less so, and banks, you know,
kind of still in flux.
You know, the advent of family and friends.
The advent, you know of private placements under reg D.
That all varies based on kind of the state of economy and
how people feel about their 401(k) in the future and that type of thing.
As you move towards the third edition, you have some interesting developments.
You have traditional venture capital stabilized.
Not really on the decline but not growing that much.
You have the growth of corporate venture capital, where large corporations wanting
to access innovation and other things begin to get more active.
You have a very well-organized, now, angel marketplace.
And, of course, you have the advent of this new concept known as crowdfunding.
And, the interplay of technology in the angel community and
private placements, the crowdfunding, the passage of the JOBS Act.
Which pieces of the JOBS Act have still not been written.
Maybe they will by the end of the semester but
they probably won't be by the beginning.
All of that has kind of come into play.
By the third edition of the book we have banking, not a lot of change.
I think some banks are trying to learn.
To lend to companies that are intangible rich and tangible asset poor.