menu

Entrepreneurial Matchmaking Site Hacks Venture Capital Investment Models

Entrepreneurial Matchmaking Site Hacks Venture Capital Investment Models
technology

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”

+#technology
+advertising
+entrepreneur
+Entrepreneuralism
+Europe
+financial services
+Latin America
+Luxury
+technology
+UPS
+Work & Business

More in advertising

advertising

Facebook Is Trying To Expand Into A Purveyor Of Positivity

Its recent acquisition of the app TBH shows how the social network is planning to appeal to a new generation of users

17 October 2017
advertising

Pop-Up Shops Celebrate The Ubiquitous Eames Plastic Chair

Visitors to the Vitra stores can create a custom version of the classic look by mixing and matching colors and upholstery choices

17 October 2017

The Latest

Event

To move beyond novelty activations and one-time gimmicks, PSFK equips marketers with the insights, templates and analytics to develop high-reach campaigns that meet consumers in the moment, collect and build upon experiential data, and build scale through content creation.

October 18, 2017
Video

Derek McCarty discusses how hmbldt is changing attitudes around marijuana

September 27, 2017
No search results found.