Diversify your porfolio with private market deals spanning multiple sectors, geographies, and stages.
Introducing AngelList Access Fund
One of the biggest problems angel investors face is gaining access to deals. It’s hard for an individual investor or family office to get into early rounds of promising startups because allocations are typically reserved for the top echelon of venture capital firms.
With the AngelList Access Fund, angel investors now have an "in" where they otherwise wouldn't have one. With one check, AngelList Access Fund participants gain exposure to dozens of high-quality deals with top-tier co-investors including Andreessen Horowitz, Sequoia, and Kleiner Perkins.
AngelList Venture is where top GPs go to run their funds and syndicates. Our network of GPs—proven investors and operators—source and invest in competitive early-stage startups and have the option to amplify their investing with capital from the AngelList Access Fund. Seasoned investor-operators on our investment committee use their expertise and judgment to approve high-quality deals. The committee is comprised of respected and talented early-stage investors, including AngelList founder and Chairman Naval Ravikant, whose early bets included investments in Uber and Twitter.
As a result of our top GPs, a full 36% of top-tier U.S. seed stage deals in 2019 are included in the AngelList portfolio.
You can think of the AngelList Access Fund as broadly indexing early-stage venture capital deals. This makes it one of the easiest ways for an investor to diversify their venture portfolio while producing competitive returns.
Funds managed by AngelList Venture consistently outperform Cambridge Associates' top quartile benchmark for TVPI (note: later funds are still early in their maturity).
We at AngelList Venture often see angels give up on investing after they fail to generate returns on their first few deals. These angels can’t access the best deals and might lack the experience or judgment to pick winners on their own. Research from our data science team bares this out. The team analyzed more than 10,000 AngelList investor portfolios and found that angels who invest systematically and broadly substantially outperform those who participate in only a handful of deals.
Analyzing the performance of AngelList Access Funds, the data science team found that investors who participated in an AngelList Access Fund substantially outperformed those who didn’t. For example, in 2015, Access Fund investors’ average IRR was 19% higher than non-participating investors’ IRR on the platform.
AngelList Access Fund investors also benefit from opportunities to level-up their investment strategies and expertise through participation in an exclusive educational series hosted by AngelList Venture. During a quarterly investor meeting, investors in the fund will have the opportunity to connect with the Investment Committee directly about recent venture trends, our data science team’s latest findings, as well as the mechanics underlying the investment committees’ decisions.
To kick things off, the AngelList Venture team will be hosting an introductory webinar with more information on the AngelList Access Fund on May 28th at 10 am PST/1pm EST. They will be discussing current venture market trends, diversification strategy in early-stage investing, and why top GPs rely on AngelList to raise capital and fund startups. If you’re interested in learning more, register here.
This post and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment, investment strategy, or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction. Any such offers will only be made pursuant to formal offering materials containing full details regarding risks, minimum investment, fees, and expenses of such transaction. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others."Top-tier VCs" is defined by AngelList based on internal assessment of each fund's industry reputation. Although AngelList has no reason to doubt the veracity of Cambridge Associates’ returns data, it has not made any effort to independently verify its accuracy. Past performance is not a guarantee of future results.
All multiples and IRR figures in this presentation are net of fees, expenses and carried interest and are partially or fully unrealized. Past performance is not indicative of future returns. The investment strategies of funds included in Cambridge Associate's IRR data referenced in this presentation may be materially different from funds raised on AngelList, which can significantly affect the volatility of returns and probability of loss for such funds. The timing and magnitude of fund cash flows are integral to IRR performance calculations, and a small number of investments have a material impact on IRRs. IRR calculations are also significantly impacted by valuations and discount rate assumptions, which are inherently discretionary. For purposes of calculating unrealized returns, companies are valued with industry-standard methods. Valuations are generally marked to a company's latest priced financing round, as disclosed to AngelList. While AngelList's valuation sources are believed to be reliable, AngelList does not undertake to verify the accuracy of such valuations. Companies that have not received new investments in a priced round since the last mark are held at cost or may be marked down at AngelList's discretion according to its valuation policy. Valuations and returns do not account for liquidation preferences and other non-financial terms that may affect returns. Investments in later-stage companies may be sent to a third-party for valuation if (i) the company's estimated value is over $100M, (ii) the investment is estimated to be worth over $10M and (iii) 24 months have passed since the last investment. Valuations and returns calculations presented herein are calculated as of March 27, 2020 and have not been audited by a third-party. Contact us for full details on our valuation methodologies. Table above presents all AngelList managed funds since August 2015. In total, AngelList has raised 11 funds with similar investment strategies as the AngelList Access Fund. Full list available upon request.