User profiles and public sections of startup profiles are visible to the general public and search engines by default. You can change your user profile to only be viewable by logged-in AngelList users on your privacy settings page.
Restricted sections of startup profiles, such as fundraising information, are visible only to people you select and are never visible to search engines.
If you're looking for a job, see Candidates: Who can see my profile? for more details about profile privacy.
If you have an AngelList user account, visit https://angel.co/settings/notifications to choose which email notifications you receive from AngelList.
If you'd like to permanently opt-out from all email communication from AngelList, please visit https://angel.co/unsubscribe.
If you are an investor on AngelList, please send an account delete request to firstname.lastname@example.org.
Otherwise, to delete your account:
This deletes your account and closes your user profile. It does not delete any startup profiles you are associated with.
At AngelList, we're constantly iterating on our security measures to prevent malicious users from accessing other users' candidate profiles. We regularly monitor our access logs but we also rely on your assistance to perform your own due diligence and help identify potential bad actors.
As you interact with other users on the site, here are some red flags to look out for. Keep in mind that this isn't a comprehensive list - bad actors are continuing to try new ways to get others’ personal data for illegitimate reasons.
Sometimes access to AngelList may be suspended due to violations of our terms of service, violations of AngelList Talent rules or one of the filters we use to better the experience for all involved on the platform. In cases where you feel such action is unwarranted, we ask that you send an email to email@example.com.
Be sure to include "Appeal:" followed by your or your company's name in the subject and the following details in the body of the email:
You'll receive a notification when we've started reviewing your appeal and after that, you'll have a response within 72 hours.
Note - these decisions are final unless otherwise noted, and, due to the nature of this process, emails or messages sent to AngelList employees outside of this process won't be considered and aren't able to change the outcome.
First, fill in all of the sections of your startup profile with concise, compelling information. Browse around AngelList to find good profiles and learn from them.
Make sure you add all of your founders, employees, advisors, investors and so on. Your team members' followers get a feed update whenever a team member confirms a role.
Make sure you add the $ amounts for all investors in your current round. $ amounts for specific investors are displayed only to the startup's contact person and that individual investor.
Second, be proactive. Use search filters to find investors tagged with your startup's markets, in your location and that have invested in companies similar to yours. Use AngelList like a social network; follow people and companies, comment on posts and like others' updates.
If you're obviously fund-able (e.g. you previously started a company that made lots of money for its investors), you might want to consider adding less information to your profile. If you're not obviously fund-able, consider the risk of sharing your idea to be a cost of doing business. If you're not willing to take this risk, don't use AngelList.
Also, keep in mind that it is rare for someone to care enough about your idea to “steal” it.
Current Investors are investors that are investing on the same terms as this round, whether right now or have in the past. Previous Investors are the others, i.e. those that invested on different terms to those currently offered.
An investor does not have to have sent money or signed docs to be listed as Current, they just have to be committed to invest in the round and confirm the tagging.
Yes, AngelList Limited is authorised and regulated by the Financial Conduct Authority.
That means you can use AngelList both to find offline investors and to have an AngelList syndicate invest in your startup.
The company profile picture/logo dimensions are 200 x 200.
The specs for the other images you can upload on the profile are: 10x16 ratio and min 1464 by 914 pixels.
The max file size for all images is 2mb.
1. No spam.
Don’t spam introduction requests to candidates or applications to companies. There isn’t a hard limit here; we track multiple variables when making this determination. So long as you’re taking the time to read and only reaching out to others you feel are a good match, you will never be affected by this.
Don’t use job listings or applications to advertise:
2. No middlemen.
3. Be fair and accurate.
4. Be professional.
You can get started by visiting our talent profile page. If you haven't already, you'll be prompted to create your job profile - indicating what you're looking for and more information about yourself.
Once you have a talent profile, visit the jobs page. There you can set different filters for things like role, location, salary offered, or other criteria and you'll see a list of the jobs posted that meet them. You can apply with or without writing a note to the company.
Depending on your settings, companies can also contact you. If you're interested in talking to each other, you'll get a notification and receive an email introducing you.
When you click Yes/Apply, the startup gets a notification including your full Talent profile.
You can see how your Talent profile looks to startups on the Preview tab. If you've uploaded a résumé, it's included in your profile.
When you apply, the startup gets a notification including your full Talent profile.
You can see how your Talent profile looks to startups on the Preview tab. If you've uploaded a résumé, it's included in your profile.
To see which startups you've applied to, click the Applied tab. As long as the application shows up there, it's been sent and is currently active.
When there's mutual interest, we'll make an introduction and the startup will appear in your Matches tab.
Assuming permissions are in order, this can be done from https://angel.co/recruiting/team
If someone is already confirmed as an employee, dropdowns next to their name can be used to change them into a recruiter.
If they need to be confirmed, that can be done from the "People" tab on the company profile page.
If someone needs to be added to the profile or to AngelList, that can be done by entering their email(if they don't have an account) or name(if they do) under "Invite Team Members."
On AngelList, we encourage companies to include compensation ranges so candidates can align themselves based on their preferences. Jobs that are posted without salary ranges do not show up in candidate search results when jobseekers filter for new opportunities on AngelList unless it is a Co-Founder role.
Alternatively, if you would like to keep compensation information hidden, you can upgrade this listing to a Premium Job and have it become discoverable. Premium Jobs also show up at the top of matching searches based on role, location and other signals.
You choose from your recruiting settings—Either all founders and current team members (as listed on your company's AngelList profile), or just the people you choose. Anyone with permission can post a job, view candidates, and take intros to candidates on behalf of your company.
By default, the person set as the recruiting contact for your company will be notified when candidates express interest in your company. You can also specify which team members receive notifications when you create or edit a job.
When you create or edit a job, you can specify which team members will receive notifications. You can have different people receive notifications only for specific job listings.
Startups are ranked on several algorithmic factors — the quality of your startup profile, your level of activity, and how candidates respond to your startup.
If you'd like to increase your visibility, you should:
In the recruiting flow, at angel.co/candidates, click "Jobs." The dropdowns next to each position will allow you to delete or unpublish a position.
On the Manage tab, click Integrations to integrate your candidates with Greenhouse, Lever, or Workable. Integrations will require authorization through your Greenhouse or Lever API key. You can use sign-on to authenticate Workable.
You will have the option to send over all applicants and candidates you match with on Source directly (Applicant Sync) or to just send over the applications you match with on Source. You can configure these settings once you finish connecting your ATS.
At this time, the number of outstanding applications a candidate can have are limited. As they expire or are processed, you'll be able to apply to more jobs. We encourage candidates to take the time to understand the company and be selective with their applications, instead of openly applying to every job out there.
Ultimately this improves the experience for both sides - companies will get higher quality applications and candidates will be more likely to get a timely response.
A match is what happens when a recruiting connection is made - a recruiter from a company and a job seeker have both said that they're interested in talking to each other.
An email gets sent to both parties and either one can reply to it to ask questions or set up a time to chat.
When you apply for a role, recruiters get a summary containing your profile photo, mini-resume, application note and previous job titles, and a link to the resume on your profile. Of course, they may research other details, but these following tips can go a long way in putting the best foot forward:
Keep your profile sharp Make sure your AngelList profile photo is high resolution and shows your face clearly. Your mini-resume should be an engaging one-liner, whether it’s creative, or a more methodical approach of naming past companies you’ve worked at and who you are.
Stay relevant Tailor your application note to the start-up you’re applying to. Be sure to reference prior achievements that will make you a good fit for the role. Don’t be afraid to back up your achievements with metrics and concrete examples (e.g. managed a team vs. managed a team of 3 engineers).
Proof-read Double Triple check your application note, mini-resume and experience section for incorrect spelling and poor grammar. Remember, your first impression is crucial!
Consistency is key Ensuring that the information on your AngelList profile matches with all other online records, including links to LinkedIn and GitHub if possible.
Stay active Don't just say "Yes" to a burst of companies at once then sit back and wait for replies to come in. Consistent activity and responsiveness (even if it's to pass on jobs) affects your position in search results.
What is Applicant Sync?
Applicant Sync allows you to process AngelList job-seekers who apply to your synced jobs directly in your connected ATS. Companies report saving 4+ hours a week on recruiting tasks using this feature by reducing the need to manually add profiles and streamlining candidate communications through their ATS.
What candidate information is sent to my ATS?
We currently send the following information about your candidate:
How will candidates appear in my ATS?
An AngelList job-seeker who applies to a specific job will appear as candidates in the first stage of the role that candidate applied for. Each candidate will be tagged as an AngelList candidate as the source. Whoever initially connected the ATS will show as the user who “imported” that candidate on behalf of your company.
If you sourced and matched with a candidate without a specific role attached, that candidate will show up as a prospect (Greenhouse) or lead (Lever).
Candidates are synced to your ATS every 1 hour, so you may expect a delay when sourcing candidates on AngelList Source.
How do I export candidates currently in my pipeline to my ATS?
If you have not yet connected your ATS
When first connecting your ATS, you will have the option to retroactively export all AngelList candidate matches and stages for your existing AngelList jobs that are now paired with their corresponding role in your ATS. Candidates who were sourced and or matched with after applying will be sent over to their corresponding stages. Click here to learn more about setting up ATS integrations.
If your ATS is already connected
On your jobs page, click on the more menu (three dots) on each job card and then select 'Export candidates to ATS'. This will perform an immediate one-time export of the current candidates in your pipeline to your ATS.
How do I turn Applicant Sync off?
We want to give you full control of your pipeline. Head to the Integrations tab to configure your sync and select 'Jobs and Matches Only' to restrict candidate exports to the candidates who you have matched with on AngelList.
We reach out to you if we think some of your job listings may no longer be open - we determine this by looking at how many applications to these listings were viewed or actioned in the past 2 months. While we hide these listings from candidates 10 days after we reach out to you, these listings will be saved in the ‘Draft’ section of your jobs page. They can easily be made visible in search if you re-publish them from this view.
Assuming you are a confirmed team member, you will need to ask an existing recruiter or admin to escalate your permissions to "recruiter" or "admin". They can do this by going to https://angel.co/recruiting/team.
Note: Founders and the recruiting contact have admin permissions by default.
Visit your company profile and click "Edit profile". From there you can click on the "People" tab and edit someone's experience to label them a "Past Employee" or click the "delete" to remove them entirely.
As long as administrative permissions are in place, click on "Edit Profile" button in the upper right corner of the company's profile page. Then from the "Settings" tab, you can manage your company name and slug.
Click the "Recruit" tab at the top or visit https://angel.co/recruiting/listings.
Note: Roles must be chosen from our current list, there isn't a way to add new ones at this time.
Salary must be included for the job to show up show up in candidate searches unless the job has been upgraded.
The "Edit Profile" button in the upper right corner will allow you to change the company to a VC or Accelerator and add/remove markets. Note that markets must be chosen from our dropdown menus.
In most cases, edit your existing profile. If not, start a new profile.
For example, if the product and team are staying the same and you're just going after a different market, keep the profile. But if you're changing your product and market, and you've lost half of your co-founders, start a new profile. The case where you're keeping the team but changing the product and market is trickier — use your judgment. In either case, be sure to list the funding history of the company on the profile.
On your own profile, edit your experience with the company to have an end date. This will mark you as a former employee and remove your recruiting permissions for that company.
If your company profile is a community profile, it's likely that your employees, board members, or advisors added your company to their individual profile, which automatically generates one to represent your company. In this case, no one has edit rights to your profile unless you decide to claim it.
If the profile is claimed, then the person who claimed it likely set up the profile on your behalf. We closely moderate claims as they come in so it's unlikely this person is a bad player. However, contact us at firstname.lastname@example.org should you need to raise a concern.
Each profile on AngelList can be connected to other founders, employees, advisors and investors. Removing one profile can remove important data from other profiles. We can't completely delete profiles from the site if they are connected to other users or profiles, but contact us to convert the profile to a "Community Profile" and remove some of the information you added when you created it.
Nope! It's totally free!
A-List is a new tool from AngelList that invites top engineers, designers, product managers, and salespeople, to fast-track their AngelList profile to hundreds of top startups that are hiring in the San Francisco Bay area, Greater New York City area, and now Los Angeles (engineers only).
A-List offers a simple, easy-to-navigate interface, messaging, and instant scheduling feature to surface and connect you to start-ups interested in your profile. A-List then helps you quickly and efficiently schedule interviews and pass through rounds.
We automatically block your current employer from seeing your A-List profile so you can get pitched to with discretion.
If you have any questions, please chat us on A-List.
Instead of applying to jobs, A-List candidates will create one profile and then get pitched to by top companies in the Bay Area, NYC, and LA.
We qualify both A-List companies and A-List candidates to ensure a successful experience for both sides.
1. Go to https://alist.co/candidates
2. Apply with or without an AngelList account by uploading a resume and answering some simple questions about your personal preferences concerning your search parameters (ideal salary, when you want your profile to be live, etc). If you make a profile using your AngelList account, some information will sync to your new A-List account.
3. Once you're live, you'll receive direct messages in your A-List inbox from companies that are interested in you. Reply to the message thread to start a conversation OR decline the request to interview.
4. Set up interviews and move through the application process quickly.
5. Land an amazing new job at a start-up! Let us know when you accept an offer, and we will send you some limited-edition AngelList swag.✌
We built an algorithm that selects candidates who were recently active on AngelList and assigns them a score based on their work experience, skills, and education. The A-List team then reviews potential A-List candidates with high scores and selects who to invite.
A-List candidates are culled from our algorithms that suggest they are at least 90% qualified for the open roles that A-List companies are hiring for.
Nope! There is no fee for candidates to use A-List.
Nope! We invite candidates to A-List based on skills, experience, and readiness for new opportunities. Once candidates are accepted onto the platform, it will be up to companies to move candidates through the rest of their hiring processes.
A-List works with well-funded start-ups and companies (that can offer high-growth opportunities) that are hiring for top full-time software engineering, data science, design, engineering management, sales, and product management opportunities in the SF Bay Area, NYC, and LA.
Your A-List profile is live for up to 4 weeks at which point your profile will automatically expire. This is to ensure that the profiles we feature are active accounts. If you want to extend your time on A-List, no need to worry! Just re-activate your account.
If you need to take your profile down before the 4 weeks are up, you can do so in your account settings.
The sooner you reply, the better! This is partly how A-List is able to connect talent to companies so quickly. Be prepared to check out the company and decide if you're interested. Otherwise, the company will get auto-rejected after 1 week.
Nope. Clicking 'yes' is just the beginning of the conversation!
Though your AngelList profile details will sync to your A-List profile initially, any edits thereafter will not sync.
Yes! Please use the chat feature and ask your A-List rep to change when your profile is live.
Yes! The option to reactivate is located in the chat section.
Not at the moment. A-List companies currently recruit for full-time, local opportunities only. We'll announce when we expand to more flexible roles!
Great question (and you're right—the AngelList Talent platform is awesome)!
A-List is by far the fastest and most efficient platform for engineers/designers/sales people/pms to begin their job search with the top AngelList companies. We suggest using A-List only when you're ready to start interviewing and AngelList talent platform when you are only browsing and/or just starting to see what you might want for your next opportunity.
Of course! Just know that it is up to you to respond to companies within a set amount of time or conversations will expire. We recommend setting aside time to review company pitches on A-List before reverting to other job sources.
Nope, sorry. Companies can indicate through A-List whether they are willing to pay your preferred salary down the line—but you will not walk out with “offers” to show your boss.
However, you can check out our salary and equity data compiled from thousands of start-up jobs on AngelList to see where you stand.
A-List is AngelList's exclusive hiring platform that helps top companies source and start conversations with the top 1% of tech, sales, and pm talent on AngelList.
Currently, A-List is only for finding the top full-time software engineers, data scientists, designers, product managers, and salespeople, who are based in (or willing to relocate to) the San Francisco Bay area, Greater Los Angeles area, Greater New York area, and the Greater Boston area.
1. Every day, AngelList algorithms discover the best candidates based on their work experience, location, education, and readiness to look for new jobs (as a few examples of the qualifiers we look for).
2. The A-List team then hand-selects the best of the best candidates and invites them to A-List. We send you an email (every Tuesday and Thursday) featuring 180 new A-List candidates who opted in that week.
3. When you see candidates who look like a fit, send them a message through the platform. Within 1 week, you'll know if they are interested in interviewing or learning more about the role.
4. After an introduction is made on A-List, it's up to you to work your magic! Let us know if you hire them, so we can bill you (more on that in a minute) and also send you some limited edition AngelList swag. ✌
Great question! You can and should use both since they serve different purposes.
AngelList Talent is a great resource for building your start-up talent brand. We highly recommend that companies use AngelList Talent and A-List in tandem, by updating their job listings on AngelList Talent to increase the flow of inbound applicants.
A-List was built so companies can quickly interview in-demand candidates before anyone else and fill roles for senior engineer/design/data science/pm/sales positions.
Because of our community of 8M start-up enthusiasts that has grown organically over the years, we get clues as to when top candidates might be interested in new work opportunities based on their AngelList activity before they even start applying. We cut out the noise by utilizing this “intent data” to find candidates who are actually open to getting pitched to.
Unlike other platforms, messages sent through A-List hold candidates responsible for responding to you within 1 week. And candidate profiles automatically expire after 4 weeks, unless a candidate requests to keep their profile active.
By using A-List, candidates know to be respectful and cooperative with companies like yours. In fact, we have a dedicated candidate ops team that is working to make sure A-List candidates are ready to respond and interview with companies.
Nope! In our experience, coding tests not only disrupt the candidate flow, but engineers with multiple years of experience also don't need to be tested at this stage in the hiring process. We don't have coding tests because we want you to connect with top candidates before anyone else.
If your company requires a coding test, then by all means, please communicate that when messaging candidates. Click here for pro-tips on improving your engineering take-home projects.
Though our platform creates saved searches for you based on your AngelList job listings, your AngelList jobs do not show up on the A-List platform. On A-List, recruiters and hiring managers pitch roles to candidates via our instant messaging feature.
However, we recommend that you update your job listings on AngelList so A-List candidates have information to refer to. Click here for how to post a job on AngelList.
Our platform creates a few saved searches for you to start based on your AngelList job listings. The left-hand panel also displays saved searches created by all recruiters from your company.
You will only receive e-mail updates about new candidates for your “starred” searches.
Marking a skill in your search filter as “required” will remove any candidate from your results who either does not have the skill or simply did not include said skill in their profile.
For this reason, we recommend marking each skill as “optional,” taking advantage of the weight feature, and populating your search via “match %” to start.
When you mark a skill as “optional,” (which we recommend since candidates might not have every skill of theirs listed on their profile) you will have the option to indicate how important the skill is in your search on a scale of 1-5.
Once you're satisfied with the search parameters you've set, we then recommend sorting your results by “match %.”
In your search filters under “company size,” please choose the relevant size from “seed (1-10)” to “massive (1000+).”
In your search filters under “location,” please select “U.S. citizen / Authorized to work in the U.S.”
Nope, this is not available.
You can search for specific skills by using the "skill" search bar. If you aren't seeing certain skills you want to search for, please contact your account rep (there is a chat section in the left-hand panel of your recruiting dashboard).
Under “settings,” go to “your account” to check off any candidate profile elements you wish to hide.
No, the candidate will not show up in other users' searches within your company dashboard. However, the candidate will be visible as “recently requested” on the left-hand sidebar.
Yes, the candidate will re-appear if their time on A-List expired but they re-join at a later date.
The key to hiring top talent is to share your story and help candidates envision where they fit into it.
Chatting with your account rep is another great way to better understand best practices for pitching on A-List.
Yes, we always recommend reaching out and then discussing details if a candidate accepts your request to chat unless they actively express not wanting to working for your specific size, industry, or location.
When helping candidates create their profiles, we ask them what type of role and company they are "most interested" in. If they don't specify certain dealbreakers, they could still be open to company types not listed on their profile.
Candidates will see your message, name, and some basic information about your company (such as size and location). A link will be provided to your company's AngelList profile.
In order to find success on the platform, we recommend reaching out to at least 10 candidates per week.
On A-List, clicking “not interested” will remove that candidate from your search. It will not affect or remove the candidate from your team-members' searches.
This is different on AngelList's Source and SourcePro platforms, where removing a candidate in your search will remove that candidate from your team's searches too.
Nope, we do not. However, our candidate profiles reveal information that is typically requested during initial phone screenings. In addition to background information, profiles share insight into candidates' “ideal next opportunity” to help you get an idea for one's cultural fit.
Yes, of course! Just keep us in the loop by updating a candidate's status in your pipeline (on left-hand panel).
This definitely varies. However, we recommend aiming for about 3-5 interviews per week (by reaching out to at least 10 candidates per week) to successfully hire someone.
Please reach out to your account rep.
Because candidates can get lost in the traditional back-and-forth of scheduling, our new “instant scheduling” feature allows you to specify a meeting length and interviewer when you send a request to a candidate. Candidates can then select an open time-slot on your calendar that automatically creates an event.
Click here for more information about instant scheduling.
Under “settings,” go to “your account,” to integrate either Lever or Greenhouse. Make sure you have the right permissions in your ATS.
By connecting your ATS, you can automatically export candidate information to Lever, Workable or Greenhouse when a candidate accepts your chat request.
Integrating your ATS also creates suggested saved searches based on your job descriptions.
Though integrating your ATS creates suggested saved searches based on your job descriptions, A-List does not show job listings to candidates. Instead, recruiters and hiring managers are expected to pitch roles to candidates and candidates can view your job listing on AngelList if needed.
When viewing candidate profiles, the “share” option at the bottom left of each profile allows you to share candidates with team-members. This feature also offers a private link to share a profile with your team.
When reviewing candidates, you can easily bookmark the ones you like by clicking on “Bookmark” on the candidate’s profile. This saves the candidate in your bookmarks for that search. To view your bookmarked candidates, simply click on “Bookmarks” in the saved search header. You can then share this list of candidates with other members of your team.
First, click on “Bookmarks” to view the list of bookmarked candidates for that search. In the top right corner of the saved search header, click on “Share bookmarks”. You can share your bookmarks by copying a direct link to that page, or via email by selecting the team members you want to share with.
Please contact your account rep.
To edit or rename a stage, hover your mouse over the top of any stage, click the gear icon, and choose "Edit Stage Settings". This will trigger a popup with the options to change the stage name or enable interviewing and scheduling for that stage.
You cannot rename the Inbound, Matched or Hired stages.
To shift the position of a stage in your pipeline, hover your mouse over the top of the stage you'd like to move, click on the gear icon, and choose "Move Stage Left" or "Move Stage Right".
You cannot change the position of the Inbound, Matched or Hired stages.
To add a new candidate to a particular stage, hover your mouse over the top of the stage and click the "Add Candidate" button which appears. A new candidate card will be inserted at the top of that stage. You can then add the candidate's name and which role you're interviewing them for. Click "save" to to add the candidate to your pipeline.
Candidates that show up in Review are those that have been starred by your team. To source candidates, click on the Recruit tab and search for candidates that fit the role you're looking for. When you see someone that might be a good fit, click on the star icon to add this candidate to Review.
If you indicate interest in a candidate by clicking "get intro" and the interest is mutual (i.e. they also indicate they are interested in speaking with you), they'll appear in your Matched stage. Reach out to start the conversation!
Under the filters in the top left corner of the screen, select the position from the first dropdown. This will update the candidates on the board to just those applying for that job.
On the sidebar on the left side of the screen, click the chat bubble icon to open your messages inbox.
Click the "activity" button in the top right corner of the screen to open your activity feed.
Snooze is a great way for pausing candidates in your recruiting pipeline— perhaps they don't have time to continue the interview process, or have already accepted another offer. We'll send you a monthly reminder of snoozed candidates so you can follow up with them whenever you're ready.
You can view all snoozed candidates by selecting Snoozed from the second dropdown of filters.
Click on the "options" button in the top right corner of the screen and click "edit email templates."
First, open the profile of the candidate that you want to send a canned response to by clicking on their card in Track. Then, select the Email tab in the right panel of the pop up
If you already have a saved email template created, select the template you'd like to use in the Template dropdown. Confirm that the content of the email is what you intended, then hit Send!
If you haven't set up an email template yet, find out more info here.
No, candidates can only see messages you explicitly send them.
All other actions (including adding, moving, commenting, failing) are only visible to your team.
Connections on AngelList reflect that the startup ecosystem is built on real relationships—investors backing founders, coworkers on teams, collaborators on open-source projects, classmates, mentors, and customers.
AngelList connections can include these relationships so you can find your strongest link to a candidate, job, investor or startup—and request introductions from your connections to meet the people you want to do business with.
Visit the Invitations section of your connection manager and click "Cancel" on any invites you'd like to cancel. We'll stop sending emails and reminders immediately.
You can directly message any investor who follows your startup.
You can request an introduction to any of your second-degree connections by clicking “Request Intro.”
No. Almost all deals on AngelList are private to accredited investors only. This means that they fall under the 506(b) regime and are not public fundraising under Reg A or general solicitation under 506(c). However, companies can elect to raise under general solicitation if they wish.
Public fundraising allows startups to tell the general public they're raising money—on Twitter, Facebook, blogs, TV, advertisements, etc. The legal term for public fundraising is ‘general solicitation’.
Whether startups raise money publicly or not, they can only accept money from accredited investors.
Startups that raise publicly also have the legal burden of verifying that their investors are accredited.
If a startup that raised publicly closes their round on AngelList (via syndicates), AngelList will handle all 506c investor verification.
Good question. Public fundraising can be useful for companies with a customer base of accredited investors (e.g. service for physicians) or for companies with a large social media reach.
However, startups should be aware that enabling public fundraising will make it easier for press to disclose details about their fundraising efforts. Also, verifying that all investors are accredited takes time and effort, and may discourage some investors from participating in the deal.
By default, startup fundraising information is just available to investors. This prevents the general public from seeing fundraising information.
To avoid triggering the requirements of general solicitation, don't promote your raise publicly, and ask your employees, investors and advisors to refrain from public discussion also.
AngelList only supports fundraising from accredited investors (whether you raise money publicly or not).
The SEC has adopted “crowdfunding” regulations that allow startups to raise money from non-accredited investors on certain registered crowdfunding platforms such as Republic.
A person in the U.S. is accredited if she meets either of these two criteria:
Entities may be accredited on other bases.
You can message anyone you're connected to or who follows your startup. You can also message anyone who requests an intro to your startup.
You can also ask people on your team to forward your messages to their connections. And the AngelList team may also give you permission to message certain people.
Finally, you can message anyone who messages you first.
For early-stage companies, valuations are generally marked up or down to a company's latest priced financing round, as disclosed to us by portfolio companies or other investors. Companies that have not received investments in a priced round since the last mark are held at the last mark or cost. Investments may also be marked down (but never up) at our discretion in accordance with our valuation policy. This is an industry-standard method. For later-stage companies, investments are sent to a third-party for valuation if the company is valued over $100M, the investment is estimated to be worth over $10M, and 24 months have passed since the last investment. Smaller investments in later-stage companies are valued using the same method as early-stage companies. The valuation of a fund is determined by aggregating the valuation of the underlying portfolio investments.
Unless otherwise indicated, valuations are calculated net of any fees, expenses or carry. Valuations for early-stage companies do not account for liquidation preferences and other non-financial terms that may affect returns. While AngelList’s valuation sources are believed to be reliable, we do not undertake to verify the accuracy of such sources. We undertake no obligation to provide updates or revisions to reflect any changes in any valuation presented on our platform.
This summary is not intended to be a complete description of our valuation methodologies. For details of our valuation policy, please contact us.
AngelList has two different access levels for investors. All investors need to be accredited regardless of which level of access they are seeking.1. Funds only
Investors with this access level can invest in select funds run on the AngelList platform. These funds build a portfolio of companies. By investing into a fund, investors automatically gain exposure to multiple companies. Investors learn about the funds' portfolio through regular reporting.
Fund investors cannot choose which companies the fund invests in. Each fund, however, has a specific thesis which gives investors an idea of the target portfolio companies. More about funds here.
Investors in this category cannot back or invest in syndicates.2. Deal-by-deal
Investors with this access level can invest directly into syndicated deals that they are invited to on AngelList. These investors are able to back syndicates and get invited to individual deals.
Investors can choose whether they invest into a specific deal on a deal-by-deal basis. Backing a syndicate does not mean agreeing to invest in all of the syndicate lead's deals.
Investors in this category can also invest in funds.
AngelList has two different access levels for investors: funds only and deal-by-deal (more about these levels here).
Please note that your accreditation status does not affect your access level. All investors on AngelList need to be accredited.
Only a small group of investors is eligible to invest on a deal-by-deal basis. Investors in this group have an extensive investment background and/or a successful track record as a founder of a venture-backed company. Deal-by-deal access is reserved for investors with an established track record of early stage investing.
To learn more about AngelList funds, please visit angel.co/funds.
Accredited investors meet standards defined securities regulators which allow them to invest in certain private securities offerings. Most startups raising money do so from accredited investors only. While the standard vary somewhat between countries, to invest on the AngelList platform you must meet both local and US accreditation requirements.
The SEC web site contains the full definition under U.S. law. In general, you must meet one of the following standards:
Non-U.S. investors should review the standards under their local law. For example, the OSC web site contains the full definition of accreditation requirements that are also applicable to Canadian investors, which in general require meeting one of the following standards:
As of September 2013, the SEC requires companies that publicly discuss their financing to take steps to verify that investors are accredited. This involves providing documentation that shows you meet one of the accredited investor thresholds. Other jurisdictions may have similar requirements.
Yes. The regulations governing general solicitation require evidence from all investors, not just U.S. investors.
If you are accredited based on income, you will need to provide documentation of income for the past 2 years. This can be in the form of tax returns, W-2s or other official documents. This is usually the fastest way to get accredited.
If you are accredited based on assets, you can provide recent brokerage, bank account or similar statements clearly showing your name, the date and the value of your account(s). In this case, we will also pull your credit report and deduct any non-mortgage debts shown from the value of your assets to arrive at net assets.
You can also provide a recent letter from a third party verifier like a licensed CPA, attorney, investment advisor or investment broker. Our accreditation verification process will allow you to trigger an email to your verifier using acceptable language.
Documents you upload as evidence of accreditation are kept private and are only used to assess your accreditation status. Licensed attorneys and CPA's review these documents to ensure that the relevant accredited investor thresholds are met.
If you claim that you are an accredited investor because you have over $1 million in net assets, then the company you are investing in is required to verify your debts in order to confirm that your net assets are greater than $1M. AngelList requests this credit report and includes only total debts (excluding mortgages) when verifying your accredited investor status.
No. We perform a "soft-pull" credit report, which will not affect your credit.
A syndicate allows investors to participate in a lead investor's deals. In exchange, investors pay the lead carry.
Here's an example: Sara, a notable angel investor, decides to lead a syndicate. The syndicate investors agree to invest $200K total in each of her future deals and pay her 15% carry.
When Sara makes her next investment, she offers to invest $250K in the company. She personally invests $50K and offers the remaining $200K to her syndicate.
If the investment is successful, the syndicate investors first receive their $200K, after which every dollar of the syndicate’s profit is split 80% to the syndicate investors, 15% to Sara and 5% to AngelList Advisors. AngelList Advisors is a venture capital exempt reporting advisor with the Securities and Exchange Commission, and a subsidiary of AngelList.
Investors get access to deals, leads get carry and startups get more capital with fewer meetings.
Startups don’t pay for syndicate investments. Investors usually pay 0-25% deal carry to the syndicate lead, and 5% deal carry to the fund's investment advisor.
Investors also pay the out-of-pocket costs for each deal—currently $8K in the US and £8,300 in the UK. These costs are paid to third parties such as state regulatory agencies, payment processors and accountants.
The lead and the fund's investment advisor do not receive carry until the syndicate investors’ investments and out-of-pocket costs are returned.
Syndicate investors don't invest directly in a company. They invest in a special purpose fund that is created specifically to invest in the company. The fund is formed as a series LP.
The fund's general partner is Fund GP and it is advised by AngelList Advisors (unless otherwise indicated). The fund's administrator is Belltower Fund Group. The lead also serves as a contractor of AngelList Advisors.
The lead usually does not invest through the fund but is required to disclose to the fund’s investment adviser how she votes, or if she buys or sells shares.
If there is a lead, the fund will usually vote with the lead unless she has a conflict of interest or there are other unusual circumstances.
Carry is a share of the profit of an investment that is paid to the managers of the investment. It is short for ‘carried interest’.
In a VC fund, the limited partners of the fund pay carry to the general partners if the entire fund is profitable. This is called fund carry or net carry.
In syndicates, investors pay carry to the lead for any profitable investment. This is called deal carry. Syndicates use deal carry so investors can opt out of any investment or stop investing at any time.
Syndicates receive pro rata rights if the lead negotiates them with the startup. If a syndicate has pro rata rights, syndicate investors in the initial round may have the opportunity to invest their pro rata allocation in subsequent financings, but pro rata rights typically are not guaranteed to syndicate investors. Any remaining allocation may be offered to other investors or funds. The pro rata may not be offered to syndicate investors if the lead does not participate, if it is unlikely that a reasonable amount of the pro rata will be filled, or for other reasons. Pro rata rights vary in strength and enforceability. Pro rata rights may be waivable by a majority of investors in the round or waived as a condition to a new financing round.
The fundraising information of a syndicate deal is only visible to accredited investors who were invited to the deal. The syndicate lead can choose who she or he invites.
In addition, the company may limit the information visible to investors, and exclude certain investors from seeing the deal (e.g. all investors who indicate having invested in a competitor).
Yes, but only if they are invited by the syndicate lead. The syndicate lead can invite investors who are not yet backers of her or his syndicate.
There are five institutional funds that primarily invest in syndicates.
These funds have access to more information from companies, syndicate leads, AngelList employees and AngelList affiliates than other investors in a syndicate. They also have access to a broader set of deals than is available to other backers on the AngelList platform, may be able to view deals before other backers, and have certain other preferential deal access and allocation rights.
Yes. Individuals and VC funds can both form syndicates.
If your fund has LPs, you should confirm that your LP agreement allows you to form a syndicate.
Any carry from a syndicate deal can be distributed to your fund’s GPs, LPs or split between them.
There are no requirements to simply start a syndicate. Your commitments begin when you syndicate your first deal. You must typically:
Leads are not required to syndicate every investment they make.
Any accredited investor can apply to invest in your syndicate. You can then accept or reject the application. You can also remove investors at any time. You should only accept into your syndicate investors whom you trust and want to work with.
The minimum investment for a lead who is investing her own money is generally 2.5% of the amount that the syndicate raises from individual investors. The minimum investment for a lead who is investing out of a fund raised from limited partners may differ.
This minimum only applies to capital raised from individuals. Syndicates can raise an unlimited amount of capital from institutional investors such as platform funds.
For example, if a lead puts $5K of her own money in a startup, she can raise an additional $195K from individual investors in her syndicate. She can also raise an unlimited amount of capital from a platform fund like CSC Upshot.
The minimum investment may be reduced if a notable investor is making a significant investment in the round. It may also be reduced in pro ratas and other special situations. Investors in the syndicate will be notified if the minimum is reduced.
Investors can also view the lead's investment amount in any deal and opt out of the deal, for any reason.
Learn more about the economics of syndicates.
By default your deals are not public and must be compliant with 506(b) of Regulation D. These deals may not be marketed publicly.
You may market syndicated deals subject to section 506(c), commonly referred to as general solicitation. You must notify AngelList prior to launching your syndicate if you are operating under 506(c) so that AngelList can comply with all relevant regulation.
You are committing to invest in the syndicate’s deals, on the same terms as the lead. You also agree to pay the lead and AngelList carry on those deals as well as the out-of-pocket costs of each deal.
This is not a legally-binding agreement and you can opt out of any agreement or stop investing at any time. All of your existing investments remain intact if you stop investing.
When the next deal is syndicated, the syndicate lead may notify and give you the opportunity to invest. The lead will also provide their investment rationale and disclose conflicts of interest they might have.
No. You can opt out of any deal. Many leads indicate whether they expect investors to participate in every deal.
Investors can increase or decrease their investment in a particular deal. Any change is subject to approval by AngelList. In limited circumstances, investors can also cancel their investment.
The lead may also reduce an investor’s investment in a deal, particularly if it is oversubscribed.
Investors that regularly lower their investment amounts or frequently opt out of deals may be removed by the lead.
Syndicates are intended to complement, not replace VC funds. Differences include:
Raising the minimum investment would cause some leads to stop syndicating their investments. Instead, they would start or join venture capital funds, which typically have no minimums.
The partners of a VC fund typically provide 1-5% of the fund's capital, but also take out 15-25% in management fees. In effect, they don't make a contribution to the fund.
The minimum for leads investing their own money in a syndicate is generally 2.5%. The minimum for leads investing out of a fund may be higher. Except in rare cases, leads receive no management fees from the syndicate.
So, for the vast majority of leads, syndicates are already more expensive than venture capital funds. Raising the minimum would cause some leads to stop syndicating their investments. They would instead invest through a venture capital fund.
Raising the minimum would also cause some leads who are new to investing to stop altogether, because it is already a significant portion of their net worth. This would lead to less diversity of investment opportunities from new leads.
Learn more about the economics of syndicates.
You sign documents to invest in a special-purpose fund that invests in the company. This signature is provided by simply checking a box. You do not sign the company’s financing documents. The company's financing documents are signed by Belltower Fund Group or their affiliates on behalf of the special-purpose fund.
Under U.S. law, yes. You should also check the laws in your country.
A Tax Identification Number (TIN) is helpful but not required.
Investors inside and outside the U.S. should get tax advice when investing in startups.
Restrictions may apply to investors in some countries.
For each syndicate deal, investors become members of a special-purpose fund formed to make the investment. That fund will purchase preferred shares, convertible debt or other instruments issued by the company. Certain taxable events may result in income or losses flowing through the special-purpose fund to its investors. Investors with taxable income or loss will receive K-1s.
If the fund holds an equity interest in a portfolio company that is a US Corporation, there is generally a taxable event on exits or when the company shuts down. In rare instances, there may also be a taxable event if the fund receives a dividend or distribution.
If the fund purchases convertible debt, prior to conversion into equity there may be taxable income for your portion of the interest on the debt or in connection with the cancellation of debt such as in a bankruptcy. Non-US investors should consult local tax advisors to understand the local tax impacts of their investment. Be sure to consult your tax advisor to understand the impacts of your investment in the context of your personal tax situation.
For each investment in an AngelList syndicate deal, investors become members in a Delaware series LP. Each syndicate will send out the U.S. tax form K-1 to all its members, both foreign and domestic, in any year in which it has taxable income or deductible expenses.
This should not be construed as tax advice and you should consult your own tax advisors: that said, typical distributions for exit events from AngelList syndicated deals to non-US investors who don't meet US presence tests are not subject US tax and withholding requirements, provided that such investors have submitted the appropriate withholding forms.
There are important exceptions to the generalization stated above (including certain withholding requirements for non-exempt foreign entities under FATCA and relatively uncommon types of distributions to all types of foreign investors for interest, dividends and distributions that are effectively connected with a U.S. trade or business ), so please be sure to consult your tax advisor before making an investment.
Syndicate investors don't invest directly in a company. They invest in a special-purpose fund that is created specifically for each investment. This fund then invests in the company. The corporate form of the fund is a series of a Master Partnership. The General Partner of the fund is Fund GP (an affiliate of AngelList) and the fund is advised by AngelList Advisors (unless otherwise indicated), a subsidiary of AngelList and an exempt reporting advisor. The lead serves as a contractor of AngelList Advisors, providing certain information related to the investment. AngelList Advisors and the lead each receive carry from the special-purpose fund.
A management fee is a quarterly or annual fee added onto a deal, meant to compensate the lead for their time and expenses. Leads may charge management fees for hiring employees, maintaining an office, paying salaries, etc. This is similar to how venture capital firms operate. However, in the case of an AngelList syndicate that charges management fees, all economics (including management fees) are calculated on a deal-by-deal basis because investors can opt in or out on each deal.
This is a new feature AngelList is exploring. To start, only leads who incur substantial costs running their AngelList syndicates will charge management fees. AngelList will determine if other leads qualify for management fees in the future.
For each deal, the lifetime total management fee (ex. 3%) is collected upfront and drawn down by the lead over time (ex. 0.25% quarterly, for three years). If there's an exit before the entire management fee is drawn, undrawn capital is returned to investors. If there's a profitable exit, the lead must return the entire amount raised (including the management fee) before earning any carried interest.
Management fees allow leads to hire staff, maintain offices, and be competitive with venture capital firms that have fees at their disposal. Many of the world's top investors are VC General Partners. By introducing management fees, AngelList is better equipped to support this cohort of investors and attract them to share their deals online.Over time, many of the current syndicate leads will face financial pressure to start or join venture capital firms where they can earn fees to offset their costs. They may choose this instead of syndicating. Management fees help mitigate this financial pressure and retain leads on the AngelList platform.
Management fees are displayed on the deal page alongside the setup costs that you pay on each deal. There is clear disclosure on deals with management fees. No additional work is required from you to participate in these deals.As always, you should review deal terms before participating and opt out on deals where you don’t like the terms. There are dozens of leads on AngelList with quality deal flow and no management fees.
First, you must have a syndicate lead.
You must also be a U.S. C corporation or LLC (only if the LLC is issuing debt in the financing). U.K. corporations also qualify.
The syndicate will generally invest on the same terms as the syndicate lead.
No. A syndicate only adds two investors to the company's cap table and syndicate investors should not be counted toward the SEC’s limit of 2000 “shareholders of record” that private companies must observe. Syndicates cannot be used for the purpose of bypassing this 2000 shareholder limit though.
If you are provided with access to a syndicate deal, review information provided by the company and the deal lead carefully. AngelList and its affiliates as well as their agents take no responsibility for and do not endorse any information concerning companies or deal terms. Should you decide to invest after performing your own diligence (including reviewing the relevant private placement memorandum, subscription agreement, and operating agreement), you will provide various information in the subscription process and execute a copy of the subscription and operating agreements online.
What is a PFIC/CFC?
The Passive Foreign Investment Company (PFIC) and Controlled Foreign Corporation (CFC) rules are US tax rules that are designed to prevent US investors from avoiding or deferring taxes by structuring investments through foreign companies.
When US investors invest in foreign companies, they have to comply with PFIC/CFC tax rules or face severe tax consequences.
Is my Company a PFIC or a CFC?
If your company is incorporated in the US, the answer is no.
If you are a startup incorporated in a non-US country, the answer is still usually no:
If you're unsure, consult with your tax advisors to make a determination for your particular case. Most competent tax advisors should be able to quickly tell you if these rules may be implicated.
Why do I need to sign a side letter?
US investors need to document a CFC/PFIC agreement in order to satisfy U.S. tax compliance obligations. If there isn't already a CFC/PFIC agreement in place, AngelList funds generally require a side letter.
What do I have to do if I sign the side letter?
The form AngelList side letter has you agree that if you become a CFC or PFIC you will notify the AngelList fund and provide information that allows AngelList funds to comply with the tax regimes.
You also agree to provide AngelList funds with confirmation that you’re not a PFIC/CFC in the case of a tax audit or company exit. This is so that you don’t have to to make PFIC/CFC reports every year (which is more onerous and commonly required by US funds investing in foreign companies).
An investor account is a custodial account maintained for the benefit of AngelList investors. You can transfer funds from your bank to your investor account and use those funds to invest in startups and syndicates.
You can also use the account to receive distributions when one of your investments has an exit.
You create an account when you fund a syndicate or angel fund.You may have multiple investment accounts for multiple investment entities: for example, you may have multiple investment accounts if you invest out of both a personal account and a trust.
A self-directed IRA is just like any other Individual Retirement Account (and can be a traditional, Roth or SEP IRA), but instead of limiting you to invest in public company stocks, bonds and mutual funds like IRAs held by your broker-dealer or bank, self-directed IRAs are set up to allow you to invest in a broader range of assets, including alternative investments like private company stock, notes, and real estate. The gains from investments properly made in a self-directed IRA are tax-deferred or tax free, just like the gains in any other IRA.
All IRA accounts are required to be held through a trustee or custodian. The trustee/custodian provides custody of the assets (documents and cash), processes all transactions at the direction of the IRA owner, maintains records pertaining to the account and transactions, files required IRS reports, issues client statements, helps clients understand the rules and regulations pertaining to certain prohibited transactions, and performs other administrative duties.
At this time, AltoIRA is the only self-directed IRA provider integrated with AngelList.
AngelList does not charge any fees for IRA investing. Self-directed IRA administrators charge annual administration and other fees. For AngelList investors, Alto offers no-hidden-fee pricing as follows:
AltoIRA fees for AngelList investors:
Separate fees apply for use of AltoIRA services outside the AngelList platform. For further information on pricing and terms visit www.altoira.com/pricing.
The vast majority of startup investments on AngelList can be made using an AltoIRA account. Some restrictions do apply, however.
You cannot use your self-directed IRA for certain prohibited transactions, such as investments in start-ups controlled by you or your family. You are responsible for determining your eligibility to make any investment through a self-directed IRA and should consult with your tax adviser before making investment decisions using IRA funds.
When you set up an AltoIRA account, you will give Alto directions to transfer funds from your existing IRA at another institution into your new self-directed IRA with Alto. This transfer of funds process can take 3-5 days on average, so if you are investing in an AngelList deal with a closing deadline, please plan accordingly. The same goes if your AltoIRA account lacks sufficient funds when you need to make follow-on investments and capital call contributions.
For this reason, we suggest planning ahead and keeping a balance in your AltoIRA account.
K-1s for investments made through your self-directed IRA will be sent to your IRA administrator. Investment income and gains in your AltoIRA account should be treated for tax purposes like any other IRA account of the same type (Traditional, Roth or SEP as the case may be). There are circumstances in which the income produced by an investment in your IRA could trigger certain types of taxes. For example, funds that invest in limited liability companies may generate Unrelated Business Taxable Income (UBTI) and/or Unrelated Debt-Financed Income (UDFI) that would be taxable for your IRA. Your IRA administrator will provide you with appropriate tax forms for your IRA account.
AngelList cannot advise you on the tax consequences of your IRA investments.
Forms W-8 and W-9 are forms which the IRS requires in order to determine tax withholding.
These forms impact how Angellist has to withhold on distributions and income allocations for your investments.
Forms W-9 do not expire.
The form becomes invalid and should be updated whenever a change in your circumstances makes an existing form innacurate.
Most forms W-8 have a life of 3 years from the end of the year the form is signed. For example, a form signed on November 2, 2018 will be valid through December 31, 2021 (barring a change in circumstances).
Distributions from investments on AngelList will not be processed until a valid Form W-8 is on file.
In addition, the IRS may impose onerous withholding obligations on accounts for which valid withholding forms aren’t available. These withholding obligations can have detrimental effects on economic returns and require significant additional administrative overhead.
If you have not completed your tax forms, we encourage you to do so here: https://angel.co/invest/tax-documents.
How you proceed with provided estimates is up to you and your tax advisor.
Most investors proceed with one of two options:
Option 1: Use the taxable income estimates to make estimated tax payments prior to filing a final tax return.
Option 2: Use the estimate in place of the actual K-1 and include that in filing a tax return. If the final K-1 received is different from the estimate used, investors typically either amend the filed return or include the difference in the following year’s tax return.
The estimates provided incorporate our best predictions based on the information available.
We expect that estimates will be consistent with final returns, but there is the possibility that some estimated amounts will differ from final K-1’s.
As an investor in the fund, we are required to send you a K-1 from the fund when it has a filing requirement. The fund also sends a return to the IRS. Whether or not you need to file a US tax return depends on many factors. We suggest that you contact a CPA or tax attorney who can give you personalized guidance.
The links below provide instructions for the most common tax forms.We are not tax advisors and so are prohibited from providing formal advice in filling out tax forms. If you require additional guidance, we suggest you contact a CPA or tax attorney who is familiar with your situation and can provide you with individualized advice.
Funds that hold only equity securities in C-corporations often don't have taxable income or loss during a given tax year. In these cases, they have no tax filing requirement and no K-1s are issued.
US Tax rules dictate that investments can be written off when the fund administrator is able to determine and document that the investment has become entirely worthless. This is a different standard than when an investment may be written down for financial accounting purposes.
The wind-down process can sometimes last many months. In these cases, the formal tax write off may occur substantially after a company first announces that it is shutting down.
Every investor should have a K-1 package available on their Tax Documents page: https://angel.co/invest/tax-documents
You need to be logged in to your AngelList investment account in order for the link to work.
If you do not see a package listed there, please email email@example.com.
Tax returns and K-1’s are only required to be filed with the IRS if there is taxable income or loss to report for a given tax year.
If your investment didn’t generate taxable income or loss, no K-1 was required.
This typically applies to SPV's that only invested in SAFE's or made equity investments in corporate entities.
Non-US investors will receive Form 1042-S from each fund in which they earned interest, dividend or royalty income.
This most commonly occurs in funds that invested in convertible notes.
You will be notified when a Form 1042-S is posted to your investor dashboard.
First you need to create a "company" profile for your firm. If you don't have one already:
In the header of your profile, click "Edit" to reveal a control to set your company type. Enter "Incubator", "VC Firm", or whatever label is appropriate. You're all set.
After you have created a company profile and set the Company Type to "Accelerator", visit the "Applications" profile tab and click [Add an Application].
Yes, you can use it to contact people, hire, manage your company's profile and fundraise offline.
Online fundraising products are available to EU startups but there may be restrictions on accepting investors from your home country. Contact firstname.lastname@example.org to discuss specifics.
Public fundraising is not permitted in most European countries. Check with your lawyer about your country's rules.
Yes. However, investors from the same European country as the company may not be able participate in the syndicate.
Under US law, you can as long as you meet the US tax & legal obligations:
UK syndicates use a different legal structure to allow UK investors to benefit from EIS and SEIS tax breaks. Backers co-invest into the startup alongside the Lead. We use a nominee, Capita IRG Trustees Limited, to hold shares in the startup on behalf of the Backers.
Investors based in the EU who meet UK accreditation standards can invest in UK Syndicates. If you meet US accreditation standards you will qualify as an accredited investor in the UK. For questions regarding investors who are based outside the US and EU, please get in touch with us at email@example.com
The Syndicate Lead will invest directly into the startup. Backers co-invest alongside the lead on the same terms by signing a co-investment agreement. This co-investment agreement allows our Investment Manager, Larpent Newton, to invest in the Startup on behalf of the Backers. Backers agree to pay the Lead and AngelList carry.
Yes - if the company is a qualifying investment and the Backer is a UK tax payer. Please note that the tax treatment of your investments may change and you should always seek tax advice when investing in Startups.
AngelList Limited is authorised and regulated by the Financial Conduct Authority.
Some Syndicate leads have opted into using the existing US based structure to run their syndicate.
UK investors can invest in all syndicates on AngelList, regardless of location and currency denomination.
You need to meet one of the following requirements:
At the time of making an investment, the Angel Investor becomes part of an Angel Fund, which is registered with SEBI under the AIF Regulations. Under the (Indian) Income-tax Act, 1961, Angel Funds have been accorded pass through status in respect of all incomes (except business income), i.e. investors are subject to tax as if they had directly invested in the portfolio companies. There is a 10% withholding at the time of making payments to investors, which the investors can claim credit for while filing their returns.
AngelList India is not qualified to provide tax advice and the above should not be read as tax advice. There are many exceptions to the generalisation stated above, so please be sure to consult with your tax advisor and accountant before making an investment.
Yes, but the bar for accreditation for US syndicates is slightly higher. Individuals are required to have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have an income of at least $200,000 each year for the last two years.
Leads get carry for their syndicated investments. This allows them to leverage their deal flow by earning upto 15% carry on the allocation being shared with backing investors. Learn more about the economics of syndicates.
Investors can participate in syndicates with lower minimums. They get access to leads' deals and benefit from their experience in picking and managing investments. These deals will be typically hard to access for someone who hasn’t spent considerable time building deal flow.
Startups get more capital with a single cap-table entry.
Leads and Investors will be required to meet the minimum threshold of investing INR 25 Lakhs over a period of 5 years from the time of making their first investment with AngelList India. This can be in a single investment or over multiple investments.
Generally, it is recommended to make multiple investments to have a portfolio of startups that will help in diversifying risk associated with startup investing.
Companies and leads may or may not choose to provide any information about performance. Investors will be getting a statement of report on their unit holdings annually. This will be provided by a third party.
Startups don’t pay for syndicate investments. Investors usually pay 0-15% deal carry to the syndicate lead, and 5% deal carry to AngelList India.
Investors also pay the out-of-pocket costs for each deal—currently 2% of the deal size, up to a maximum of ₹5L. These costs are paid to third parties such as fund administrator, payment processors and accountants.
The Eligible Angel Investor should have considerable experience in matters related to startup investing (e.g. negotiating term sheets, closing investment rounds) and should have made at least a few notable startup investments. Contact firstname.lastname@example.org with specific details.
Generally, the opportunity should meet most, if not all, of these conditions:
In case of any doubts, contact email@example.com.
No syndicate will have more than 199 Eligible Angel Investors from India.
AngelList values privacy and by design, everything is private. Backers have to apply to back syndicates and see any deal that the lead wishes to share with them. This is the only way for top deals to attract value-add backers in a syndicate.
The return from the carry will be realised only upon a successful liquidation event (e.g. secondary, sale, public offering) and will be shared as per the distribution guidelines mentioned in the investment documents.
Typically, 15% carry will be paid out to the Lead Investor and 5% carry will be paid out to AngelList India.
Raising through AngelList India's Angel Fund benefits the company, since the company is exempt from the Indian "Angel Tax" which could otherwise apply in certain situations if the Angel Investor had invested directly into the company. The Indian "Angel Tax" is levied on the portfolio company on the capital invested, if it receives funding at a valuation which is more than the fair market valuation derived as per the Indian Income tax rules and will be forcefully treated as income.
Unless otherwise permitted by SEBI under the AIF regulations, AngelList India syndicates can only invest in companies which:
Yes, select opportunities would be made available to foreign investors that will be structured as a US based special-purpose vehicle similar to other AngelList syndicates.
Non-Indian investors will be investing into a US based special-purpose vehicle. At the time of exit, the purchaser may withhold taxes on the amount of gains and the SPV will file taxes on its returns of income in India.
AngelList India is not qualified to provide tax advice and the above should not be read as tax advice. There are many important exceptions to the generalisation stated above, so please be sure to consult your tax advisor and relevant international tax treaties before making an investment.
Companies are valued with industry-standard methods in accordance with ASC 820.
For early-stage companies, valuations are generally marked up or down to a company's latest priced financing round, as disclosed to us by portfolio companies or other investors. While AngelList’s valuation sources are believed to be reliable, we do not undertake to verify the accuracy of such valuations.
Companies that have not received investments in a priced round since the last mark are typically held at the last mark or marked down at our discretion according to our valuation policy. Our valuation policy typically calls for marking an investment to zero upon news of impairment or a significant pivot.
Our valuations often do not account for liquidation preferences and other non-financial terms that may affect returns. In certain cases, investments are sent to third-party valuation providers to determine fair market valuation. This is typically done for large, late-stage investments and investments where standard valuation methodologies are unlikely to capture the investment's fair market value.
Our valuation policy generally only provides for valuation mark ups in connection with priced sales of company equity, such as at a Series A or later financing.
Valuations reported in the news are often based on a variety of sources - sometimes credible, sometimes not. The valuation listed on the dashboard is based on AngelList’s valuation policy and information available to it.
When a company exits, the acquiror usually holds back some portion of the purchase price in order to satisfy contingencies. The most common examples of this are indemnification escrows and milestone-based payments. These portions of the exit consideration are typically realized over several years following the exit. There may also be stock of a private company acquiror received in an exit, which may remain unrealized for many years.
Our valuations are generally based on the price per share paid in a round. This is because you can't accurately assess the change in value of a position based solely on the post and the pre-$ valuations.
PPS = Post-$ Valuation / Post-$ Fully Diluted Capitalization
PPS = Pre-$ Valuation / Pre-$ Money Fully-Diluted Capitalization
If the Series A Post-$ fully diluted was the same as the Series B pre-$ fully diluted, then you could simply divide the Series A Post-$ by the Series B Pre-$ to get the increase in valuation. But they almost never are the same. Here are a couple of reasons why:
• The Series B pre-$ fully diluted typically includes a 10-20% post-$ available stock plan. This is mostly due to convention.
• The pre-$ fully diluted will often include convertible notes or SAFEs issued in between the two rounds.
• If additional Series A shares were sold in the interim, or the company increased the existing stock plan in the interim, the Series B pre-$ fully diluted would be bigger.
The value of your position will also be affected by carried interest and any fees paid in connection with the investment.
If you have transferred your interest for estate planning or due to other legal obligations, the reporting for that investment is slightly more complicated. If the entity you transferred the investment to is an entity associated with your same AngelList account, you will see the value reporting listed on your dashboard with the new transferee account listed under the entity column. Generally, the Invested ($) will show as $0 for any interest that has been transferred. The proportional amount transferred will be listed under "Invested ($)" for any transferee entity associated with your AngelList account. In the event that the event had realized distributions prior to transfer, those distributions will generally be listed under the original investment entity which received the distribution.
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