menu

Entrepreneurial Matchmaking Site Hacks Venture Capital Investment Models

Entrepreneurial Matchmaking Site Hacks Venture Capital Investment Models
Advertising

AngelList is a free and open service for entrepreneurs and early stage investors to connect in a low pressure setting.

Stephen Fortune
  • 8 march 2011

AngelList is a free and open matching service for entrepreneurs and early stage investors. Startup businesses create a profile and select which investors can view their information. Founder Naval Ravikant stresses that the website “is a passive communication channel,” not unlike Twitter, and any company can sign up to be a part of it. The angel investors are vetted however to prevent snoops and lurkers who are unlikley to actually engage in funding.

The site is riding the crest of a wave: that wave being the boom in Angel Investing which has seen a groundswell in the contemporary economic climate. Furthermore, AngelList highlights vibrant start up scenes elsewhere than Silicon valley, including Estonia and Chile. Criticism of vulnerability to deterimenal social proof factors have been levelled at the site, with Foursquare investor Bryce Roberts taking public leave of the platform with the announcement that it encourages a herd mentality

Nevertheless Angelist has the potential to alter the complexion of the investment market:

Business Insider: How many companies are on it, how many have raised money?

Ravikant: Almost 1,300 investors – about 60% angels and 40% VCs. Our rough estimate is over 200 companies funded. We’re a well kept secret. .. we find that a very high percentage of intros turn into investment offers, as much as 25%

This success poses a threat to venture capitalists who don’t have sufficient differentiation. It levels the field, improving the prospects for start ups and changing the dynamic of the investment ecosystem.

AngelList

Business Insider: “This Man Is Putting Millions In Startups’ Pockets — And Scaring VCs To Death”

Advertising
Trending

DIY Kit Lets You Build Your Own Wooden Bike, Boat Or Caravan

Design & Architecture
Culture Today

Messaging Add-On Helps You Correct Your Friends’ Bad Grammar

An iMessage sticker pack will help you copyedit text messages

Automotive Today

Mercedes-Benz Introduces A New Electric Mobility Brand

The separate entity aims to simplify the identification of Mercedes EV products to customers

Trending

Get PSFK's Related Report: Future of Automotive

See All
Mobile Today

Tinder’s New Feature Makes Swiping A Group Effort

The dating app wants to democratize its gestural interaction by buying in to the social polling trend pervasive among millennials

Related Expert

Guillermo Melantoni

Product Design Software

Syndicated Today

Autonomous Garbage Drone Prevents Trash From Reaching Deep Ocean

The solar-powered WasteShark collects refuse closer to the source: the harbor

Automotive Today

Aston Martin Reveals Its Own Luxury Powerboat

The sleek AM37 echoes styling elements from the British brand's sports cars

Advertising Today

An Escort Website Fights Violence Against Sex Workers

The advocacy campaign from McCann aims uncover the human toll of the exploitative industry

PSFK LABS REPORT

Future Of Automotive
Scenarios Driving The Digital Transformation Of An Industry
NEW

PSFK Op-Ed Yesterday

Digital Design Expert: Mobile First Is Dead, Think Mobile Native

Brian Cooper, chief creative officer of OLIVER Group UK, explains how some brands are still playing catch-up to new technology

PSFK Labs Yesterday

The 10 Steps To Discover, Hire, Develop Your Next Leader

PSFK's Future of Work report outlines key steps in the employee development path to empower next-gen leaders

Culture Today

LIFE Magazine Relaunches In Pure VR

The general interest periodical, which ceased publication in 2000, has turned into a portal for virtual reality content

Mobile Today

Reorder This Detox Drink With A Simple Text Message

Dirty Lemon is streamlining its communication by letting customers place orders, ask product questions and request help exclusively through chat

Op-Ed Today

The Future Of The American Workforce Requires Unbundling College Education

President of JetBlue Technology Ventures: developing corporate education programs for non-traditional students

Retail Today

Gilt’s Pop-Up House Is The Kind Of Store You’ll Want To Live In

The New York City townhouse plays host to the latest in retail inspiration, curation, and lifestyle activation (and some libations, too)

PSFK LABS REPORT

Future Of Work
Cultivating The Next Generation Of Leaders
NEW

Mobile Today

Registering To Vote Is Now Just A Text Away

A new bot aims to mobilize underrepresented groups this election season through SMS and Facebook Messenger

Africa Today

Virtual Reality Game Gives Lessons About Emergency Birth Care

LIFE is a serious tool that takes advantage of new technology to help save lives

Luxury Today

Shoe Repair Has Moved Onto Your Phone

Cobbler Concierge is an on-demand service to get your footwear fixed online

No search results found.