Are angel funds a bad idea?

So, here's a question...

NYC has a lot of money floating around...  lots of hedge fund and banking bonuses... but little of that ever finds it's way into burgeoning startups. 

The problem as I see it.. or at least as I think I'm seeing it, is a connection and to some extent a filtering problem.  The money doesn't know how to find the right startups, nor are they immersed enough in the tech to really evaluate it in an intelligent manner.

So, I often wonder if it wouldn't be valuable for someone to come along with a $10 million fund in NYC to do 20-40 deals of 250-500k each

links for 2007-05-23

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