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m →‎The issue: Added "September 2010" in the first sentence b/c the article doesn't explicitly indicate when this occurred.
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==Emergence==
==Emergence==
===The issue===
===The issue===
The scandal began after [[Michael Arrington]], editor of the [[TechCrunch]] publication, wrote in his [[blog]] that he had been turned away from a secret meeting among so-called "[[super angel]]s" he knew,<ref>{{cite news|publisher=Wall Street Journal|url=http://blogs.wsj.com/venturecapital/2010/09/24/the-daily-start-up-angelgate-escalates/|date=September 24, 2010|title=The Daily Start-Up: “AngelGate” Escalates|author=Russell Garland}}</ref> held at Bin38, a [[wine bar]] in San Francisco's [[Marina District]].<ref name="hitler">{{cite news|publisher=San Francisco Chronicle|title=AngelGate meeting scandal gives Bin 38 lots of free publicity, punchlines, and a Hitler parody.|author=Paolo Lucchesi|url=http://insidescoopsf.sfgate.com/paololucchesi/2010/09/24/angelgate-meeting-scandal-gives-bin-38-lots-of-free-publicity-punchlines-and-a-hitler-parody/|date=September 24, 2010}}</ref> The participants at the meeting, among other things, discussed how they could compete with other angels, venture capitalists, and the [[Y Combinator]] business incubator for the limited pool of worthy investment opportunities.<ref>{{cite news|title=Paul Graham of Y Combinator Pulls Back the Curtain on What Goes On At His Start-Up Factory|first=Leon|last=Neyfakh|date=September 28, 2010|url=http://www.observer.com/2010/media/paul-graham-y-combinator-pulls-back-curtain-what-goes-his-start-factory|publisher=New York Observer}}</ref> Arrington said that after the meeting, he had been informed by two of the attendees that the investors had discussed how to fix low valuations for new [[start-up]] companies, and how to keep better-funded venture capitalists from investing.<ref>{{cite news|publisher=National Post|url=http://business.financialpost.com/2010/09/23/fp-tech-desk-the-secret-rulers-of-silicon-valley/|date=September 23, 2010|title=The secret rulers of Silicon Valley|author=Jameson Berkow}}</ref>
The scandal began in September 2010 after [[Michael Arrington]], editor of the [[TechCrunch]] publication, wrote in his [[blog]] that he had been turned away from a secret meeting among so-called "[[super angel]]s" he knew,<ref>{{cite news|publisher=Wall Street Journal|url=http://blogs.wsj.com/venturecapital/2010/09/24/the-daily-start-up-angelgate-escalates/|date=September 24, 2010|title=The Daily Start-Up: “AngelGate” Escalates|author=Russell Garland}}</ref> held at Bin38, a [[wine bar]] in San Francisco's [[Marina District]].<ref name="hitler">{{cite news|publisher=San Francisco Chronicle|title=AngelGate meeting scandal gives Bin 38 lots of free publicity, punchlines, and a Hitler parody.|author=Paolo Lucchesi|url=http://insidescoopsf.sfgate.com/paololucchesi/2010/09/24/angelgate-meeting-scandal-gives-bin-38-lots-of-free-publicity-punchlines-and-a-hitler-parody/|date=September 24, 2010}}</ref> The participants at the meeting, among other things, discussed how they could compete with other angels, venture capitalists, and the [[Y Combinator]] business incubator for the limited pool of worthy investment opportunities.<ref>{{cite news|title=Paul Graham of Y Combinator Pulls Back the Curtain on What Goes On At His Start-Up Factory|first=Leon|last=Neyfakh|date=September 28, 2010|url=http://www.observer.com/2010/media/paul-graham-y-combinator-pulls-back-curtain-what-goes-his-start-factory|publisher=New York Observer}}</ref> Arrington said that after the meeting, he had been informed by two of the attendees that the investors had discussed how to fix low valuations for new [[start-up]] companies, and how to keep better-funded venture capitalists from investing.<ref>{{cite news|publisher=National Post|url=http://business.financialpost.com/2010/09/23/fp-tech-desk-the-secret-rulers-of-silicon-valley/|date=September 23, 2010|title=The secret rulers of Silicon Valley|author=Jameson Berkow}}</ref>


The blog became the subject of discussion among the [[Silicon Valley]] start-up community over the next several days.<ref name="bbc">{{cite news|publisher=BBC|url=http://www.bbc.co.uk/blogs/thereporters/maggieshiels/2010/09/angelgate_-_a_tech_conspiracy.html|title='Angelgate': A tech conspiracy?|author=Maggie Shiels|date=September 23, 2010}}</ref><ref>{{cite news|publisher=New York Times|url=http://dealbook.blogs.nytimes.com/2010/09/22/a-quiet-angel-investors-dinner-turns-noisily-public/|title=After Quiet Dinner, Angels Get Indigestion|date=September 22, 2010}}</ref> Investor [[Ron Conway]], whose business partner attended the meeting, wrote an email highly critical of the angels involved and called the event "despicable and embarrassing".<ref>{{cite news|publisher=San Francisco Business Times|url=http://sanfrancisco.bizjournals.com/sanfrancisco/blog/2010/09/ron_coway_slams_super-angels_hard.html|title=Ron Conway slams 'super angels' hard|author=Patrick Hoge|date=September 23, 2010}}</ref> Dave McClure, a well-known angel present at the event,<ref name="bbc"/> wrote in a blog that Arrington's account was inaccurate, and a "tweet" (later deleted) complaining about Conway.<ref>{{cite news|title=Showdown! Angels, Arrington to Go Mano a Mano|url=http://www.reuters.com/article/idUS196786161120100925|publisher=Wired Magazine|author=Ryan Singel|date=September 24, 2010}}</ref> [[Chris Sacca]], another attendee of the meeting, wrote a lengthy email that defended the participants and was critical of Conway, which was also leaked to TechCrunch.<ref>{{Cite news|publisher=TechCrunch|url=http://techcrunch.com/2010/09/26/angelgate-chris-sacca-responds-to-ron-conway/|title=|AngelGate: Chris Sacca Responds To Ron Conway|author=Michael Arrington|date=September 26, 2010}}</ref>
The blog became the subject of discussion among the [[Silicon Valley]] start-up community over the next several days.<ref name="bbc">{{cite news|publisher=BBC|url=http://www.bbc.co.uk/blogs/thereporters/maggieshiels/2010/09/angelgate_-_a_tech_conspiracy.html|title='Angelgate': A tech conspiracy?|author=Maggie Shiels|date=September 23, 2010}}</ref><ref>{{cite news|publisher=New York Times|url=http://dealbook.blogs.nytimes.com/2010/09/22/a-quiet-angel-investors-dinner-turns-noisily-public/|title=After Quiet Dinner, Angels Get Indigestion|date=September 22, 2010}}</ref> Investor [[Ron Conway]], whose business partner attended the meeting, wrote an email highly critical of the angels involved and called the event "despicable and embarrassing".<ref>{{cite news|publisher=San Francisco Business Times|url=http://sanfrancisco.bizjournals.com/sanfrancisco/blog/2010/09/ron_coway_slams_super-angels_hard.html|title=Ron Conway slams 'super angels' hard|author=Patrick Hoge|date=September 23, 2010}}</ref> Dave McClure, a well-known angel present at the event,<ref name="bbc"/> wrote in a blog that Arrington's account was inaccurate, and a "tweet" (later deleted) complaining about Conway.<ref>{{cite news|title=Showdown! Angels, Arrington to Go Mano a Mano|url=http://www.reuters.com/article/idUS196786161120100925|publisher=Wired Magazine|author=Ryan Singel|date=September 24, 2010}}</ref> [[Chris Sacca]], another attendee of the meeting, wrote a lengthy email that defended the participants and was critical of Conway, which was also leaked to TechCrunch.<ref>{{Cite news|publisher=TechCrunch|url=http://techcrunch.com/2010/09/26/angelgate-chris-sacca-responds-to-ron-conway/|title=|AngelGate: Chris Sacca Responds To Ron Conway|author=Michael Arrington|date=September 26, 2010}}</ref>

==Aftermath and critique==
==Aftermath and critique==
Reports arose that the United States [[Federal Bureau of Investigation]] began reviewing the incident.<ref>{{cite news|url=http://sanfrancisco.bizjournals.com/sanfrancisco/blog/2010/09/fbi_reportedly_looking_into_angelgate.html|publisher=San Francisco Business Times|date=September 23, 2010|author=Patrick Hoge|title=FBI reportedly looking into Angelgate}}</ref>
Reports arose that the United States [[Federal Bureau of Investigation]] began reviewing the incident.<ref>{{cite news|url=http://sanfrancisco.bizjournals.com/sanfrancisco/blog/2010/09/fbi_reportedly_looking_into_angelgate.html|publisher=San Francisco Business Times|date=September 23, 2010|author=Patrick Hoge|title=FBI reportedly looking into Angelgate}}</ref>

Revision as of 04:30, 18 November 2010

Angelgate is a controversy[1] surrounding allegations of price fixing and collusion among a group of ten angel investors in the San Francisco Bay Area.[2]

Emergence

The issue

The scandal began in September 2010 after Michael Arrington, editor of the TechCrunch publication, wrote in his blog that he had been turned away from a secret meeting among so-called "super angels" he knew,[3] held at Bin38, a wine bar in San Francisco's Marina District.[4] The participants at the meeting, among other things, discussed how they could compete with other angels, venture capitalists, and the Y Combinator business incubator for the limited pool of worthy investment opportunities.[5] Arrington said that after the meeting, he had been informed by two of the attendees that the investors had discussed how to fix low valuations for new start-up companies, and how to keep better-funded venture capitalists from investing.[6]

The blog became the subject of discussion among the Silicon Valley start-up community over the next several days.[7][8] Investor Ron Conway, whose business partner attended the meeting, wrote an email highly critical of the angels involved and called the event "despicable and embarrassing".[9] Dave McClure, a well-known angel present at the event,[7] wrote in a blog that Arrington's account was inaccurate, and a "tweet" (later deleted) complaining about Conway.[10] Chris Sacca, another attendee of the meeting, wrote a lengthy email that defended the participants and was critical of Conway, which was also leaked to TechCrunch.[11]

Aftermath and critique

Reports arose that the United States Federal Bureau of Investigation began reviewing the incident.[12]

There was skepticism that there was actually any collusion, or that price fixing could succeed if it was attempted.[1][13][14] The event also gave rise to various online cultural phenomena. Among other things there was a flash mob at the wine bar, a Hitler Downfall parody, a spike in the establishment's google rank, a number twitter jokes[4] (compiled on question-and-answer site Quora), and so-called "fakeplans" for super-angel meetups on site plancast.com.[7] On Monday, September 27, Ron Conway, Dave McClure, Chris Sacca, and others appeared at a panel discussion hosted by Arrington at his "TechCrunch Disrupt" conference in San Francisco[15][16] where, despite Arringon's prodding, they avoided a "Jerry Springer moment".[17]

References

  1. ^ a b Alexei Oreskovic (September 22, 2010). "Investor conspiracy theory grips Silicon Valley". Reuters.
  2. ^ Mangalindan, JP (September 29, 2010). "Angel collusion: It's not necessarily a bad thing". Fortune Magazine.
  3. ^ Russell Garland (September 24, 2010). "The Daily Start-Up: "AngelGate" Escalates". Wall Street Journal.
  4. ^ a b Paolo Lucchesi (September 24, 2010). "AngelGate meeting scandal gives Bin 38 lots of free publicity, punchlines, and a Hitler parody". San Francisco Chronicle.
  5. ^ Neyfakh, Leon (September 28, 2010). "Paul Graham of Y Combinator Pulls Back the Curtain on What Goes On At His Start-Up Factory". New York Observer.
  6. ^ Jameson Berkow (September 23, 2010). "The secret rulers of Silicon Valley". National Post.
  7. ^ a b c Maggie Shiels (September 23, 2010). "'Angelgate': A tech conspiracy?". BBC.
  8. ^ "After Quiet Dinner, Angels Get Indigestion". New York Times. September 22, 2010.
  9. ^ Patrick Hoge (September 23, 2010). "Ron Conway slams 'super angels' hard". San Francisco Business Times.
  10. ^ Ryan Singel (September 24, 2010). "Showdown! Angels, Arrington to Go Mano a Mano". Wired Magazine.
  11. ^ Michael Arrington (September 26, 2010). TechCrunch http://techcrunch.com/2010/09/26/angelgate-chris-sacca-responds-to-ron-conway/. {{cite news}}: Missing or empty |title= (help); Text "AngelGate: Chris Sacca Responds To Ron Conway" ignored (help)
  12. ^ Patrick Hoge (September 23, 2010). "FBI reportedly looking into Angelgate". San Francisco Business Times.
  13. ^ Dan Primack (September 22, 2010). "Super-angels have dinner, all hell breaks loose". Fortune Magazine.
  14. ^ Alex Salkever (September 24, 2010). "AngelGate or Not, Controlling the Market in Hot Startups Is Impossible". Daily Finance. {{cite news}}: Text "http://www.dailyfinance.com/story/angelgate-or-not-controlling-the-market-in-hot-startups-is-impo/19646924/" ignored (help)
  15. ^ Nitasha Tiku (September 27, 2010). "How Michael Arrington's School of Friendship Journalism Led to 'AngelGate'". New York Magazine.
  16. ^ Tomio Geron (September 27, 2010). "'AngelGate' Players Come Face To Face, But Fireworks Are Few". Wall Street Journal.
  17. ^ Jessica Guynn (September 27, 2010). "'AngelGate' disrupts TechCrunch conference but no 'Jerry Springer' moment". Los Angeles Times.
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