Dave Balter wrote a great piece about Angel investing and how if it isn't done right a lot of good-intentioned Angels could lose money but if done right everybody (Angel, VC,Entrepreneur) wins.
Ultimately, it's about following the rules of the investing ecosystem: Angels get things started, venture capitalists create mature, sustainable businesses, and investment bankers sell them. And if we all play by our roles, we're all going to win.
It is a great read for anyone.
/via Wayne Barz on Twitter.