Last week I had the privilege of speaking to angel investors at the Y Combinator Angel Conference. One of the trends I discussed is the movement toward convertible debt as the financing mechanism for angel investors versus equity. In fact, 80 percent of the startups I have worked with this so far this year in 2010 used convertible debt (with a capped pre-money valuation on conversion). The other 20 percent that reaised capital via equity raised it from "super" angels, i.e. angels that have limited partners. For more information, you can follow my remarks at http://www.justin.tv/ycombinator/b/267536844. At about 4 min. into the video.