AngelList

“I think in the last year, both of them had over a hundred million dollars raised through their vehicles.”

“For full disclosure, I am an investor in AngelList.”

“Yes, I think between, well, Myself, Tim Jackson, I would say Gil Dibner are probably the three.”

“Doug has one of the largest angel-less syndicates in Europe, With over 350,000 pounds backing him now.”

“I think a lot of this will be VCs probably having some sort of separate Seed funding arm, which probably uses AngelList alongside to help to do that early stage investing.”

“I think AngelList are more directly competing with VC.”

“Venture will be disrupted. It's being disrupted today. It's being practiced actually today differently than it was 15 or 20 years ago, and it'll probably be practiced five or seven years from now differently than it is today. So I do believe that venture is no…”

“At the time he hadn't done a million dollar syndicate, and we did a million dollar syndicate with him”

“I think one of the advice I give to my other founder friends on whether they're doing connected devices or software, as long as they're doing something consumer facing, I highly, highly recommend them. Don't be in a stealth mode. Don't be in a stealth mode. No…”

“And the VC, every year on average, you have about fifty billion dollars of VC investments. Last year, I think the syndicated model total between all different sites like Founders Club and Angelus were like two hundred million.”

“That said, we've been very happy and successful with this model. I mean, we've raised over ten million dollars through Funders Club and Angel List across different companies. Might even be close to twenty million at this point between the various multi-company…”

“The next generation of sort of these proof of concept funds that are, you know, five or ten million dollars are more likely to get down on Angelus than they are, you know, standalone LP funds”

“A lot of people investing on Angelus are tourist investors, or they're investing during a very good time, but if the market turns and if there is a contraction at some point, A lot of those investors are going to retract.”

“But I think that the modal VC, two partners, and an admin, and maybe an analyst, is under threat from AngelList, because they can't possibly have the level of granular knowledge of different sectors that individual angels do.”

“We are certainly monitoring AngelList because there is no question that they are working up the food chain to make themselves the fundamental operating system of this asset class.”

“Absolutely.”

“Platforms out there like the Seed Invest and Angelists of the world they're getting better and better in terms of the validation and really strict interview process of startups coming in through them, and it's really helping us a lot because it kind of allevia…”

“It's a fund that is being invested by CSC Upshot into syndicates. So this is not AngelList getting money as a funding round. This is not AngelList getting money to decide where to put. This is actually a very smart team of GPs that are investing directly in sy…”

“A lot of syndicates are already investing in Series A rounds not a lot of them are leading Series A rounds at the moment.”

“I also don't think to your second point that AngelList will, you know, make the VC model obsolete because the VC model is very boutique you know, especially in later stage investments larger Large amounts are very well managed by the VC firms that exist.”

“This is really where AngelList is really a very classical example of how a marketplace can take over an industry or can take part in an industry where we can now do something because of the structure of syndicates, because of the structure of the investments t…”

“But yeah, I certainly see that something that's happening over the next five years, you know, which I think is a very interesting timeframe because five years will roughly be when we will likely see our first big exits. And that's really when the model will be…”

“Flight is just a umbrella name for the now 25 syndicates we run ranging from You know, the SaaS syndicate to the fintech syndicate to the IOT syndicate. We then branched out and launched syndicates in the UK and Germany and Israel and Canada”

“Some of Gil's investments include some pretty well-known companies that you might have heard of, including PayPal, LinkedIn, AngelList themselves, Indiegogo, and many, many more.”

“Gil also has the title of the largest raise for an AngelList syndicate, essentially turning himself into a one-man fund.”

“Atlas would end up leading the Series A for AngelList very quietly. And have invested in every round since, and I think just continue to drink the Kool-Aid around online investing.”

“95% of the investments that we make are done through AngelList, and specifically through syndicates.”

“Maiden Lane is being built and AngelList is being built, you know, in the middle of a city center of a major city, and I think that's sort of the bigger trend of where venture is going. It is no longer going to be a skill set or knowledge of the very few. It's…”

“Initially, we didn't even think there would be enough deal flow on AngelList, and so we put it in our documents that we would do half the deals offline in a more traditional manner, and then half online, kind of waiting for the platform to scale.”

“AngelList is a great example where AngelList builds a platform on top of which they prove success, on top of which they go raise a four hundred million dollar fund. That could have, that has the potential to be a disruptive new way of doing both deal flow and …”

“I seed funded AngelList about five years ago.”

“A hundred percent. I think it, you know, it's not necessarily that AngelList moves into it, it's that the syndicate leads and other players will use AngelList to do pre-seed, to do seed, to do A, to do B.”

“I think if you look at any of the other top syndicates out there, you'll find that the people who have top syndicates have gone out there unashamedly and told people, hey, I'm doing this, set my flag”

“So we think some of the best managers, which I will actually be platforms like AngelList.”

“And so people can either pre-fund me or have work, can go on a deal by deal basis, but I don't bring everything to AngelList. Even though I'm a big AngelList fan, sometimes entrepreneurs, for whatever reason right now, don't want, even in a private syndicate, …”

“We were actually, Tom and I, my partner, were one of the first checks into AngelList in 2010.”

“So my personal opinion is bridges are a great way to make money because these are strong companies. And actually a lot of risk has been taken out of the business with Very little valuation bump”

“When we talk about disruption, I'm very skeptical that where we're going to be in 10 years is, you know, everything is initial coin offerings, and there's no VCs, and, you know, there's just sort of marketplaces like AngelList and Bitcoin, right? Like, I don't…”

“Now, Parker is a partner at AngelList, And creator of popular Twitter parody account Startup L Jackson.”

“We have now run about 1200 deals through the AngelList platform, raised hundreds upon hundreds of millions of dollars for entrepreneurs”

“So Nivi and I basically decided to take venture hacks and use that as a launching platform and basically start distributing deal flow for free to all of our high quality investor friends. And there was no grand plan or business model in mind. It was more of a …”

“And then I think the final one is, which came out a little bit in some of your questions, is that Angelus is mainly about fundraising, but the reality is that our talent platform is probably the biggest piece of what we do today.”

“AngelList, the original vision of AngelList, because Naval hates VCs, was why don't I separate the skill set here between people who are good at investing and people who would be good advisors, and I'll break it open through a network.”

“So I put up a 200 K allocation on AngelList and emailed some of my friends, and 24 hours later, it was filled.”

“They send me a lot of deal flow, so I'd probably say 25% of the deal flow I get comes from that list.”

“So at this point, I have almost 1300 people who sign up to basically get emails from me and participate in my deals. 700 of them have put their own money at risk into deals with me”

“I always think it's the most undervalued startup when we think about, A, the incredible data it has that it's reserves, the hiring platform that it is, the funding mechanism that it is.”

“And at AngelList, we found companies like Ubers, Imogen, and Opendoor before anyone else, or before many others.”

“The programmatic analysis of early stage companies, I think, is a fool's errand, and I have seen some of the best data in the world of AngelList. I've talked to all sorts of people experimenting with that data when I was there and since then, and it doesn't re…”

“Sahil's made waves, raising one of the first rolling funds on AngelList, with his being six million dollars per year”

“So we did a syndicate through AngelList, which is nice from cap table construction perspective, because it's just one name on the cap table.”

“Is that when you have more VCs in the ecosystem, you actually do get more innovation, which I know is against what most VCs think, but we're actually seeing it play out in our data that when you have more people writing checks, you actually end up getting more…”

“And we're actually seeing some rolling funds scale extremely quickly. And we do expect us to have the Equivalent of a billion dollar fund very, very soon under a rolling fund structure.”

“Our stack includes the LPs, the fund managers, and all the services needed, and tomorrow we're actually going to add startups to that as well.”

“In reality, when you really are trying to invest your pro rata into the companies that are becoming really great, the assumption that it is going to be available for you is false.”

“We have some fund managers, some established fund managers, actually, who don't have reserve strategy on purpose. They actually, exactly, they want to focus on just the first checks, and then for pro rata, they can go ahead and have a opportunity fund, or they…”

“The way to think about AngelList is we're going to be the largest financial platform in venture.”

“I think this whole notion that you're going to disrupt and fundamentally take over the business has just been proven false over and over again. AngelList is awesome, but it's not 20% of the industry, you know. Andreessen said, we're going to completely, you kn…”

“I think one is like on AngelList now, there's really no excuse not to have some kind of track record before you go talk to an institutional LP.”

“So I don't think the conditions are there for a rapid acquisition spree. Unless these are, like, rock bottom prices, and it's just like, you know, just, I mean, literally, you're getting an amazing deal, but I don't think that's gonna be good for employees or …”

“I would say funds have the best margins and the smaller SPVs have the worst. And For some of the smaller SPVs, those are a loss leader for us.”

“And I would say the biggest external threat would just be anyone that's looking to compete with AngelList. That's a startup, but I've always been like that. I'm pretty paranoid when it comes to with small teams, right?”

“And AngelList has always run as if the next bear market's around the corner, literally every year.”

“Yeah, so for context, AngelList supports 20,000 funds and syndicates now, and we manage a portfolio of more than 13,000 startups across all of these funds and syndicates.”

“It's incredibly fast and it's actually incredible. That, that distance is also incredibly large. So typically, when you have these dots that collect and it's reported every quarter, they're all kind of collect, you know, pretty close to each other, right? It's…”

“Definitionally, you don't have any defensibility on day one because you don't have a business or even day 30, unless you magically get the, you know, pretty large network effects. And even then I would doubt that because that means if you were able to get a la…”

“Individuals are actually down 60% from like when we compare it to about a year ago.”

“A lot of the large language models and their advancements there have had a major impact on AngelList, just our own internal operations, right? It's been huge and we've been tinkering on it for many months now, and it's actually automated a good portion of the …”

“So two million, you can do a party round five million, it's much harder to do a party round now.”

“We've definitely seen the time to first close has increased. It was three months in the boom times, and now it is six plus months. And when I say six plus months what I'm referring to is the timeline went from six and right now it's trending towards seven.”

“I think the most important thing we do is we've hired a group of very ambitious people. A group of ambitious people are very dissatisfied all the time, right? Like all the time. It's like, hey, why aren't we there yet? Like, why aren't we building something ev…”

“Both individuals, institutions, commitments aren't actually down by much. It's close to only 20%”

“And when you just take a look at that sample size of companies from today, sample size of companies in historical average, we're actually seeing a 33% drop in companies in terms of how many companies we expect would have raised by now, right?”

“Our margins are actually north of 80%.”

“In hindsight, I think we would have approached it by asking the question, Is this something unique that AngelList can bring to the world, right? Is there something unique about this problem and unique about our view of how to solve it that we can bring to the …”

“And so we're actually in the depth of the bear market, if you will, for venture right now. And that spread between where it was in the boom times and the bad times is the farthest distance it's ever been on on everything that we track.”

“Institutions this is actually incredibly interesting, went down and then has in recent in recent weeks, spun right back up and has recovered in our data.”

“And so I actually made the decision to scale back and shut down Europe. Because it was just splitting our resources.”

“Like I'll regularly go cancel all my meetings on the calendar because all that really matters is that you're shipping products that your customers love and anything that gets in the way of that and you drag, kill it, crush it, and just focus on Speed.”

“And so today we're regularly taking on 50, a 102 hundred million dollar funds. Whereas two years ago, we were saying no to all of them, right?”

“So in Q one so far, we've seen 48. These would be these would be the pay to plays.”

“So one LP will purchase another LP's position and the range of discount that we're seeing actually is anywhere from. But what's more common Is actually 40% or 50% from last round mark. And so you're talking about a pretty significant discount to last round val…”

“I would say that we are seeing we're seeing the percentage of party round to non-party round actually being the same, but the overall volume has contracted.”

“So what you, what was happening in the heyday of 20, 21 and 20, 22 was that companies would just keep raising these successive rounds and we would see it like C, C plus C plus plus, right. It just keep going on and on and on and always just raising a little bi…”

“When you look at our data, first time fund managers are fantastic, right? Not all of them, but when you think, when you look at some of the returns, they can be great. So if you have a different way of diligence and first time fund managers, I think it's an aw…”

“A hundred percent. Because the cost of capital goes up. And when the cost of capital goes up, you can't invest into launching new cities. And you can't invest into what typically ends up being the J curve of this type of a business where you end up losing mone…”

“Deal volume in Series B down more than 50%. Valuations down more than 50%.”

“For context, AngelList supports 20,000 funds and syndicates now, and we manage a portfolio of more than 13,000 startups across all of these funds and syndicates.”

“When you compare it to venture funds the, and venture funds are the traditional structure and we have a pretty large venture fund business. Individuals are actually down 60% from like when we compare it to about a year ago.”

“I would say that we are seeing we're seeing the percentage of party round to non-party round actually being the same, but the overall volume has contracted.”

“We've definitely seen the time to first close has increased. It was three months in the boom times, and now it is six plus months. And when I say six plus months what I'm referring to is the timeline went from six and right now it's trending towards seven.”

“And so what's happening is the cash out date was, has been pushed out for a lot of companies. And so our view is that these will start ticking up in Q two and then definitely Q three, Q four, because these startups, they have a brick wall, right?”

“And a lot of the large language models and their advancements there have had a major impact on AngelList, just our own internal operations, right? It's been huge. And we've been tinkering on it for many months now, and it's actually automated a good portion of…”

“What we're seeing in our data is that only the companies that Actually have credible traction are raising now. So even if you put aside adverse selection, meaning the set of companies are raising from insiders and insiders are leading the rounds that we're def…”

“I mean, you're talking about deal volume in Series B down more than 50%, valuations down more than 50% Series A is also down Series C is basically Gone, right? Like, I mean, you don't really hear of many late stage deals getting done anymore. It's very, it's r…”

“So one LP will purchase another LP's position and the range of discount that we're seeing actually is anywhere from. But what's more common Is actually 40% or 50% from last round mark. And so you're talking about a pretty significant discount to last round val…”

“When it comes to LPs within funds, we've definitely seen an increase in appetite to sell positions. And also sometimes sell positions and name brand, you know, name brand companies that are actually just great companies.”

“And when you just take a look at that sample size of companies from today, sample size of companies in historical average, we're actually seeing a 33% drop in companies in terms of how many companies we expect would have raised by now, right? And so that's a p…”

“Within rolling funds which is one of the products that we have both individuals, institutions, commitments aren't actually down by much. It's close to only 20%, which is very, very very interesting.”

“We still think we're in the thick of it and we think it's gonna take another few quarters before everything just works itself out.”

“And so we're actually in the. The depth of the bear market, if you will, for venture right now, and that spread between where it was in the boom times and the bad times is the farthest distance it's ever been on, on everything that we track.”

“I know a founder of this company called cashflow portal that is essentially building the angel list for real estate investing in a way that it's just never been done before. And I think this is a place where there are potential for network effects where there …”

“So AngelList charges 3.61% a year to manage this fund, right?”