John Backus, founder and managing partner of New Atlantic Ventures, makes his case for why the rise of angel investing has created seed funds with a math problem. Backus points to data from the University of New Hampshire that in 2010 angels invested $20 billion in 61,900 companies (an average of $323,000 per company). He concludes angel-funded companies are being funded at a rate that can’t be absorbed by institutional VCs. Backus warns the angel bubble will keep inflating after the SEC allows start-ups to sell equity stakes to pools of small investors. [Source: The Washington Post]