AngelList – Connecting The World Digitally
Can you find out the similarity between a pharmacy company, transportation network and fantasy sports competition? The answer is simple – AngelList. It is a hot topic for most investment platforms in the digital world.
Over the last decade, the cost of building technology companies has decreased a lot. Software has been gulping the world as they providing incredible profits that boost a number of entrepreneurs. With the help of globalization, connectivity and standardization unprecedented scalability can be swept away and this allows a number of peoples to reach millions on the global platform.
AngelList offers a world where less capital means a lot and thus, most entrepreneurs win the game.
How AngelList works?
AngelList is basically a platform for startup companies where they can not only get connected with employees but also the investors. Before you know AngelList, consider going through the concept of angel listing. Those who are new to this lingo, it’s better to know that angel investors are wealthy people who can provide capital for startups in return of company’s equity.
These individuals are actually accredited with a net value of 1 million dollar or a yearly income of 2 hundred thousand dollars or more. Therefore, the investor can typically provide a helping hand with style. On the contrary, venture capitalists usually work with a firm and consider investing more with the requirement of more say when it comes to managerial decisions.
If you want to get hooked with an investor of AngelList, simply submit a private application to proceed. The applicants within 1 to 2 percent get the final call and then, AngelList will automatically generate a list of investors based on the industry you are dealing with. The stage, performance and location also play an important role.
Now, as a founder will have to select investors from the generated list so that you can speak to them. This can be done by filtering the attributes on the basis of fund type, location and activity. When you swipe right on the investor, the person gets information about your company.
He/she also receives a notification of recommendation from the AngelList admins. If things go in the right way, the investor will start investing.
The latest feature of AngelList
One of the newest features of AngelList is syndicate. A syndicate allows invitation of other accredited investors to the leads to sharing the deals clearly. In exchange of this, backers pay the lead carry. To make it simpler, the feature of syndicate allows individuals to act like VC funds without the need for management fees.
The syndicated startups and features are reviewed by AngelList admins with a team of professional analysts from the best and reputed venture capital firms. This process occurs within 72 hours of publication from syndicate campaign.
However, if you don’t want to raise a syndicate, the development of your network will still be continued through the connection of investors following you.
This means AngelList is one of the useful platforms for a person who is in search of a job at a startup. Basically it has three steps. These are:
- Creating a free profile so that you can show the skills and overall experience
- Browse jobs and choose the companies which you feel are interesting.
- Wait for the email confirmation from the company.
5 things to include in an AngelList profile
Choose a smooth way
Choose a way through which the investors can contact you easily. The investors are in continuous search for companies. Therefore, if you want to create a connection, experts recommend activating the “get an intro” button on the AngelList. You can also provide an email with the first name and company domain. Providing the contact info of the CEO is pivotal.
Building a link to your website
This step is very important especially if the domain of your company is .co, .is or anything other than .com. Most of the profiles lack this important detail and thus, you should not be a part of them.
Before investing, investors look for direct communication with the CEO of a company along with checking the backgrounds of co-founders. Make sure to clear this out with your team members as well as employees.
LinkedIn profile links
As most of the investors have a concept that a team is the ultimate ingredient, providing links of LinkedIn profiles can do the trick. Make sure all the profiles of your co-founders are updated and considering listing the startups as their current and primary positions. This indicated your commitment and passion towards a startup.
A clear description
Investors must be provided with a detailed description of your business. The short story can tell a lot to the investors. Basically, it shows the ability of convincing other investors, employees, co-founders and most importantly, customers so that they can jump on board. Make sure that the description is free from spelling and typing mistakes.
Regulatory changes bring in new set of investors
As per the Job Act of 2012, it has broadened the definition of investment to a great extent. With this investment in private companies is possible while staying within a specific boundary and registered broker-dealers. Keeping this in mind, the technology of AngelList and equity crowdfunding has already been the talk of the day.
The potential angel investor’s ranks had been multiplied for the accommodation of new aspiring angel investors. There were two camps on the platform side. One is with the registered broker-dealers to leverage the new standard and successfully capture the fees and the other is AngelList that decided to go with the master plan of short term model with a focused success fee.
Professional navigation of AngelList
Most people often go through a misconception that AngelList is a social networking platform. It’s small but the focused environment is more targeted for catering the entrepreneurial ventures. Anyone working with a startup must take advantage of this incredible opportunity.
Signing into AngelList is easy as it can be done through popular social networking sites like LinkedIn, Twitter and Facebook.