Avenging Angel: Naval Ravikant wants to burn down the VC industry
Joyce Park stashed this in Tech biz
An old friend from the Epinions days is profiled perceptively by his alumni magazine.
Look how happy he looks in that picture, dreaming his wonderful dreams...
I like the Tom Fallows quote in this article.
Ironic as it sounds, this social media approach to fund-raising is a revolutionary development in the Valley. “It’s a very opaque market,” says Tom Fallows, who cofounded and later sold the online retailer Mercantila after working at Epinions and now works in e-commerce for Google. “If you want to raise money for your company you have to pitch your way into meetings with each venture capital firm. That’s a full-time job that might take you two months. At the end of it maybe you have two or three offers—it’s just not a competitive landscape.” AngelList can cut that time investment drastically, and its openness can drive better terms. The platform makes life easier for small-stakes investors such as Fallows as well. “It gives me access to deals and opportunities that I would never have had the ability to know about or invest in,” he says.
We got 8% of our series-A from Angellist, 13% from Crowdfunder, 2% from Equity.net for a total of 23%. We got 29% from Harvard Business School Angels, 11% Tech Coast Angels, 1% Pasadena Angels, 1% TEEC, and 1% Maverick Angels. The lead time for the social funding was 4 weeks. The lead for for the angel funding was 4 months.
AngelList: Part of a complete breakfast.
Seriously though that is a LOT of angel investors.
that's some relevant info, gregory! thanks for sharing!
also, sounds like it's good to be in with hbs!! :)
I also like the Tim Ferriss quote in this article.
Recently the company began offering job listings for those looking to work for startups and charging a fee for successful hires. But the site’s most powerful feature is the “syndicate,” through which high-profile investors can marshal many backers and bring their collective buying power to a deal. “Historically, angels didn’t have much capital capacity,” says Tim Ferriss, the author of The 4-Hour Workweek and a marketing advisor to AngelList and other startups. “That is being turned completely upside down. In my case I have between $3 and $4 million in automatic backing and, for the last three of my deals, I’ve funded in two to three hours. I fully anticipate that I and many other angels will get to the point where we have $5 to $10 million to command in competitive deals.” Syndicates won’t soon reach the depth of the venture firms, which command an average pool of $221 million, but an angel with backing in the millions has enough leverage to compete—in 2013 the average venture deal was for $7 million, and most included multiple investors.