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Avenging Angel: Naval Ravikant wants to burn down the VC industry

Stashed in: Venture Capital!, @angellist, Awesome, @tferriss, Venture Capital, business

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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 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.

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