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AngelList: Non-Geeks, µCarry, 100 Signatures, Bricks and more… — Medium

Stashed in: Software!, @angellist, Medium

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1) Syndicates backed… but committed?

Conclusion: AngelList will require “first checks” and will custodian said capital, potentially earning revenue on the float.

2) 100 signatures per deal… no more.

Conclusion: Software will simplify the process and automate the paper trail. Startups will receive capital within 24hrs.

3) Non-Geek Money

Conclusion: the amount of committed capital will 10X in 24-36mo as non-geek money arrives.

4) Brick & mortar will drive the middle class

Conclusion: Normal people care about their neighbors as much, or more, than tech geeks.

5) How much µCarry?

Conclusion: Backers & Syndicate Leads are willing to trade a new currency of future value (µCarry) for enhanced services. Founders will ask them to.

6) FounderRank & StartupRank

Conclusion: New data sources will decrease risk for investors by aggregating deeper reputation data into FounderRank and StartupRank.

7) In 2020, AngelList will noticeably impact the US unemployment rate

Conclusion: AngelList’s success will be measured by societal impact.

8) International Growth

Conclusion: The rest of the world is growing faster than the US and AngelList will have more impact abroad.

Actually, on point #2, syndicates are not yet ready for primetime...

It’s too hard to close a syndicate deal today. Shyp wasn’t really funded in 53 minutes, it likely took weeks to see the actual green stuff. Syndicate leads don’t/won’t have the time to manage the process. Instead of 100 emails going out, 100 SecondMarket accounts created, 100 manual wires executed… AngelList will replace the process with software. With pre-commit of capital (See #1), backers will continue to pre-agree to fund deals, with a 24hr conflict of interest notification. Startups will enter receiving wire info on the site, Syndicate Leads will agree to invest on the site, and post the waiting period, AngelList will transfer funds from the custodian accounts to a given startup.

Give it 2-3 years and AngelList will be awesome.

Until then... lots of growing pains.

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