[runT1ME]

I think a question to ask though, is will these type of pastime angels continue to invest even if the returns aren't spectacular? Are they doing it for fun and some cash, or are they doing it because they think it's the best way to make money?

[jonathanjaeger]

I think it's a combination of both. Many angels are rich already, but they want to contribute to the ecosystem. They can dabble in many different startups, so it never gets boring and they don't have to sink all their time in with one idea. If they come out making a solid buck (either on par with the stock market or better), then that's all gravy. If they make less than they would have in the stock market, then it comes down to whether they did it for the fun ride. When/if there is a bubble burst, we'll see who gets separated out as the "real" angels.

On a side note, here's a good follow-up by Chris Dixon on Graham's post http://post.ly/15hcU.

[mloc]

I don't think this noise creates a big problem, I just think it's not going to last for long. Also, IMO "traditional" angel investors will continue investing because they probably enjoy doing it.