Comments on post “Angel Funds by AngelList”
Sarah A. Downey
@sarahadowney · Principal, Accomplice
Awesome. @naval and @nivi, can you lay out the difference between syndicates and angel funds?
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Jake Zeller
@jake_zeller · Partner, AngelList
@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).
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Sarah A. Downey
@sarahadowney · Principal, Accomplice
Perfect, @jake_zeller 👍
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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.
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Jake Zeller
@jake_zeller · Partner, AngelList
@johnschenk @sarahadowney That's right! No investment committee needed for approval, etc.
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