AngelList is a site where you can invest in technology startups and funds. We have three different investment products:
Syndicates are single-deal VC funds created to invest in a specific startup. These let you invest deal-by-deal in specific startups.
AngelList funds let you invest in 50-100 startups with one check. Funds are managed by AngelList and have access to private deals that most investors do not.
AngelList has a special program for individuals or institutions who plan to invest over $1M on the platform. Contact us directly if you are interested.
Several professional VC funds use AngelList Syndicates as their sole source of dealflow.
Investors on AngelList must be accredited.
Investors self-report their accreditation status during sign up. Access to deal-by-deal investing also requires evidence of sophistication. We expect that investors participating in AngelList Syndicates have made two or more direct investments in technology startups known to the AngelList community.
AngelList reviews investor applications within 3 business days.
A syndicate is a single-deal fund created to invest in a startup. Syndicates pool capital from multiple investors into a single fund.
Syndicates are brought to the platform by syndicate leads -- experienced angel investors who have vetted the target investment. Syndicate leads make personal investments in deals, demonstrating their confidence in the investment's potential. AngelList has over 200 syndicate leads who are actively bringing deals to the platform.
Syndicate leads share details on the opportunity with syndicate investors. Investors typically have 5 business days to decide whether they'd like to invest. Investors sign documents online and fund investments via ACH or wire.
The minimum investment size is between $1K and $10K per deal.
Each syndicate investment has a one-time cost of ~$8000, prorated across all investors in the syndicate by their investment amount. For example, if AngelList puts together a syndicate for a $500K investment in a startup, and you put in $50K, you would pay approximately $800 in costs.
These costs are paid to third parties such as state regulatory agencies, payment processors, and accountants. AngelList does not profit from these fees.
Syndicates also charge carry - usually 20% in total. Carry is a cut of positive returns generated by the investment. Example: let's say you invest $1000 in a syndicate with 20% carry. If the investment returns $2000, the syndicate would earn $200 in carry. 20% * ($2000 - $1000).
Funds automatically build you a diverse portfolio of startup investments on AngelList, including private deals hidden from most investors. Investments are chosen by the AngelList team. Invest in a fund for a "set and forget" index-fund style investment.
Funds typically have a minimum investment of $50K.
Once you are approved for investor access on AngelList, you'll have access to an investor account.
Your investor account helps you track and manage your portfolio, provides access to investment & tax documents, and allows you to deposit and withdraw funds.
AngelList prepares of K1s annually for all investors who have made investments online.
All K-1s and other tax information in a single downloadable PDF? Thank you @AngelList.— Rakesh Agrawal (@RakeshAgrawal) March 27, 2015
These resources can help give you a better understanding of angel investing.