Angel Funds by AngelList

The easiest way for angels to start a venture fund

#2 Product of the DayMay 16, 2017

Angel Funds are the easiest way to start a venture fund. Raise capital up front so you can make investments quickly and privately. Without the overhead of running a fund.

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Ryan Hoover@rrhoover · Founder, Product Hunt
💕 this ending quote from Nivi's blog post about the announcement: "It's a great time to be an entrepreneur, an angel–or both." I'm excited to see how Angel Funds enables a new wave of angels that previously didn't have access to capital or infrastructure to start investing. Also props to Maiden Lane, putting $35M to work (more on TechCrunch).
Kunal Bhatia@kunalslab · Co-founder & Design Lead @SlidesUp
#SquadGoals Definitely a great time to be around startups. I'm just wrapping my head around being a first time entrepreneur, but I know where to look if I ever get to the angel side! @rrhoover are you thinking of becoming an angel? 😇
John Schenk@johnschenk · Founder at Taffy
@rrhoover Great time indeed. This is a win-win!
Ben Tossell
Hunter
@bentossell · Something new
Angel Funds are the easiest way for angels to start a venture fund, without the hassle. They raise capital up front so they can make investments quickly and privately. Angel Funds provide infrastructure and capital so the operator-angels that startups love can make larger investments, without the overhead of running a fund. Angel funds are for notable angels who commit to building a portfolio and investing only through their fund, while it has capital. There are already 35 angels funds, with $15M invested in 220 startups. You can read more on Quartz or on TechCrunch
brryant@bryantchou · co-founder, webflow
This is awesome. I've always wondered what the barrier of entry would be to start my own VC fund. This looks like it will at the very least lower the operational overhead.
Jack Smith@_jacksmith · Serial Entrepreneur & Startup Adviser
~$12,500 for the administrative costs + back office is crazy cheap. For context, I've heard from other VC funds about having their lawyers go over a $100k budget, just to set up a relatively small $10m-$20m fund.
Jake Zeller
Maker
@jz1
@_jacksmith That's right! We're making small funds possible :-)
Sarah A. Downey@sarahadowney · Principal, Accomplice
Awesome. @naval and @nivi, can you lay out the difference between syndicates and angel funds?
Jake Zeller
Maker
@jz1
@sarahadowney Syndicates raise capital to invest in a single company. Backers can review the investment opportunity and opt in on a deal-by-deal basis. Angel funds, on the other hand, raise capital in advance to invest in multiple companies. Backers make a single commitment to the angel fund, then the lead angel allocates the fund in whichever companies they choose (usually 5-10 over the course of 6-12 months). Also, syndicates charge "deal carry" (based on the performance of just one deal) whereas angel funds charge "fund carry" (based on the net performance of the entire fund).
Sarah A. Downey@sarahadowney · Principal, Accomplice
Perfect, @jake_zeller 👍
John Schenk@johnschenk · Founder at Taffy
@jake_zeller @sarahadowney So, the lead angel has authority to write immediate checks, as I understand it? This is a far cry better than some of the traditional angel groups, which can painfully take months to fund a company.
Jake Zeller
Maker
@jz1
@johnschenk @sarahadowney That's right! No investment committee needed for approval, etc.