[platosrepublic]

Exactly. Pissing off an angel investor because some equity goes to the founder instead of the angel is bad for a VC, because that VC needs that angel to help funnel them deals in the future. But it's good for the founder, because the founder keeps more equity.

This is a very disingenuous argument by Fred Wilson, which is a shame because his analysis is usually so intelligent. But when it comes to convincing founders to give VCs more equity, he's driven by his own incentives just like any VC.