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AngelList

https://angel.co/invest/start
Startups
AngelList is a multifaceted site, offering job postings, analytics on fundings, and three sets of investing options.
Scorecard
A
Quality of Offerings
C
Fees
A
Quantity of Offerings
A
Brand
D
Liquidity & Cash Flow
B
Risk & Diversification
Accessibility
B
Alts for All Score
5 - Excellent

AngelList is currently the world’s largest startup network, connecting job searchers and investors with emerging startups and private market growth companies, sorting useful startup tools (via its subsidiary, ProductHunt), and providing investment opportunities through fund and co-investment models. The AngelList investment platform offers access to 100,000 of the world’s top startups from seed to pre-IPO stages. Through this platform, more than $1B has flowed through five thousand companies, with marquee exits including Honey, Cruise, Figure Eight, and Ring. Together, AngelList funds and co-investments allow for instant diversification, access to companies backed by top VCs and angels, and exposure to broad sector coverage – provided by syndicate leads with deep expertise in areas such as FinTech, Life Sciences, Consumer, and Crypto. 

There are three investment options provided for those looking to invest on AngelList: deal-by-deal investments, funds, and professional investor syndicates. The deal-by-deal investment option allows accredited investors to choose individual companies on their platform to invest in with a minimum investment amount of $1,000. The Fund investment option allows accredited investors to build a portfolio of startups by investing a minimum of $100,000 in one of AngelList’s funds, which invest in companies chosen and vetted by CEO Naval Ravikant and other well-known investors. AngelList also offers the “professional investor” option; with a minimum investment amount of $500,000 a year, this option allows family offices, institutions and active investors to access AngelList investments and resources directly alongside an AngelList representative.

AngelList’s syndicate model benefits from significant tailwinds as employees of mature startups valued at $1B or more seek new ways to invest in peers, branch out on their own, or receive partial liquidity. Employees at companies like Uber, Slack, and Airbnb – among others – use the AngelList platform to manage and connect with both personal and private investor networks. Ex-employees at tech companies may form syndicates on AngelList and invest in each other’s new ventures. This model can also be expanded to include experts, current employees, friends, and other similar syndicates. With capital, peers, and the necessary infrastructure, the site’s platform for syndicates is uniquely positioned within the startup ecosystem.

AngelList’s offering is robust for one simple reason: most people are already on its site. The offerings mentioned above are complemented by the leading venue for listing jobs at startups, extensive private market funding data, and ProductHunt, an affiliated site providing insights on new product launches. Many founders also give the site a look when raising pre-seed rounds, hoping to spot like-minded angels and advisors. Given its broad suite of offerings and deep base of experienced investors, AngelList is an exceptional option for accredited investors willing to pay more to invest alongside leading VCs and angels.

‍ Pros

  • The reputation and convenience of the AngelList platform provides access to some of the best investments that the private markets have to offer. 
  • The vetting process for the site’s funds is done by prominent angel investors with established track records, most notably site founder Naval Ravikant. 
  • When compared with standard minimum investments for top venture capital funds (typically in the millions) and angel investments (typically hundreds of thousands of dollars), the deal-by-deal investment option of $1,000 is unconventional.

‍ Cons

  • Access to AngelList is limited to accredited investors, and, relative to equity crowdfunding sites like StartEngine, the $1,000 minimum may be prohibitive.
  • AngelList does a bit of everything, and syndicates and funds are not the sole focus of the company, which emphasizes its ability to connect investors with startups and startups with prospective employees. Matching-making may be symbiotic with investing, but the former may come first in the company’s playbook.