AngelList N O V E M B E R 2 0 1 5
Online Fundraising and Syndicates
Recent Metrics Raised online $205M In last 2 years Online Fundraises 393 In last 12 months (11/1/2014 - 10/31/2015) Online Fundraises to Date Over 700 Investors 4,400
1. Most online deals have a limited number of investors 19% 18% 17% % of Deals 13% 9% 7% 6% 5% 4% 2% 0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-98 Investors in Each Deal
Online Fundraising ≠ Crowdfunding
2. Almost all deals are private Public (506c) 3% Invite-Only (506b, limited distribution) 37% Broad Private (506b) 60%
…even more so recently (Last 6 months only) Public (506c) 2% Invite-Only (506b, limited Broad Private distribution) (506b) 46% 52%
3. Activity is moving quickly to online deals led by a credible investor (Syndicates) Offline Introductions Online Closes 5,500 4,400 Investors 3,300 2,200 1,100 0 Q4'14 Q1'15 Q2'15 Q3'15
Syndicates
Why this works: Syndicates Syndicates are pop-up, online, venture funds LPs invest one Online closing and Deals by Leads earn deal at a time tracking experienced carry—no mgmt angels & VCs fees LPs can opt out of Designed for scale: any deal 165 syndicates Often founders, LPs are close to startup individuals or community institutions
How syndicates work 15% carry to Elad 5% carry to AngelList Elad Gil PATIENTS KNOW BEST $175k allocation BACKED BY 38 investors $25k Elad No management fees $150k $150k syndicate
$25K Elad Gil PATIENTS KNOW BEST $150K $158K SYNDICATE 38 investors AL-Patients-Know-Best, LLC $8K ADVISED BY Actual Expenses AngelList Blue Sky, LLC Formation Costs, Advisors Banking, Tax & Accounting for Syndicate Lifetime SEC-Registered Exempt Reporting Advisor
Key Elements of Syndicates Skin in the game (lead averages 16% of investment) Insiders vetting deal & terms Ongoing deal monitoring and decisions by lead Pro-ratas Online/automated accreditation checking, closing, funding Smaller investments allow more diversified portfolios v Ready for Institutional Capital?
Syndicate Issues 1. Need clarity from SEC that VCs (ERAs) can invest in SPVs that share an advisor 2. Syndicates aren’t allowed under the current crowdfunding regulations (no SPVs, no carry). Allowing them to work under both accredited online investing and unaccredited crowdfunding would help both.
Thank you
Backup Slides
165 active syndicates Elad Gil Dave Morin Foundry Group INVESTOR INVESTOR INVESTOR Zynga, Harmonix, Airbnb, Square, Pinterest Nest, Dropbox, Slack ReturnPath, Admeld, FOUNDER FOUNDER Sendgrid Path Color Genomics, Mixer Labs SYNDICATE TEAM TEAM Former VP Twitter, FG Angels Facebook Platform & Connect Google
165 active syndicates Scott & Cyan Paige Craig Tom Fallows Banister INVESTOR INVESTOR INVESTOR Lyft, Twitter, Postmates Uber, Zappos, Thumbtack Wanelo, SpoonRocket FOUNDER FOUNDING PARTNER FOUNDER Ironport, Topsy Arena Ventures Mercantila, Google Express BOARD MEMBER TEAM TEAM Paypal, Postmates US Marine Corps Head of Uber Global Expansion
4,400 syndicate investors—many founders Joshua Schachter Steve Case Othman Laraki Founder of Co-founder of AOL Co-founder of Mixer Labs del.icio.us Stephan Paternot Jared Kopf Ben Davenport Co-founder of Founder of AdRoll Co-founder of theglobe.com Beluga
Over 700 startups funded RAISED ONLINE RAISED ONLINE RAISED ONLINE $748K $150K $500K SYNDICATED BY SYNDICATED BY Tim Ferriss Rick Marini
Over 700 startups funded RAISED ONLINE RAISED ONLINE RAISED ONLINE $779K $163K $615K SYNDICATED BY SYNDICATED BY Naval Ravikant Jenny Rooke
Follow-on rounds from top VCs RAISED ONLINE RAISED ONLINE RAISED ONLINE $141K $748K $150K FOLLOW -ONS FOLLOW -ONS FOLLOW -ONS $65M $60M $57M INCLUDING INCLUDING INCLUDING Bessemer Kleiner Perkins Accel Partners
Follow-on rounds from top VCs RAISED ONLINE RAISED ONLINE RAISED ONLINE $163K $225K $500K FOLLOW -ONS FOLLOW -ONS FOLLOW -ONS $31M $30M $20M INCLUDING INCLUDING INCLUDING Bessemer Kleiner Perkins Redpoint
“Venture” for small deals Sumon Sadhu @sharpshoot · Feb 2015 I credit @AngelList for giving me the platform from being an angel to a fund overnight that has brand and reputation. Firms are noticing.
Company Benefits Shyp @shyp · Dec 2014 @tferriss' syndicate is a built-in network of advocates, acting like a megaphone on our behalf.
Investor benefits John Danner @jwdanner · Feb 2015 Can you love a company? @AngelList just let me make a pro-rata investment in a deal in the same 45 seconds as initial. Seriously awesome!
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