6 days, 1,900 startups: AngelList upturns fundraising
- Cromwell Schubarth
- Senior Technology Reporter- Silicon Valley Business Journal
- Email | Twitter | Google+
See correction at end of article.
In about a week, more than 1,900 AngelList startups have begun to capitalize
on new U.S. rules that let them solicit the public for investments.Looser regulations on public fund-raising by startups and new ways to organize investors on AngelList stoked activity on the funders and founders network. If investors taking part in this week’s frenzy ultimately see profitable exits from their investments, this week could be remembered as the moment AngelList shifted into high gear.
The startups that have publicly announced on AngelList have collectively gotten commitments for $63 million in funding, some through the network and some offline.
The new activity on AngelList has even lured venture firms who want to act as syndicators, pooling investments from wealthy investors seeking to bet on teh seed investments they make.
AngelList in August started letting angels for syndicates, aggregating funds from wealthy investors to use to fund particular startups. Last week it expanded that to allow syndicates to sign up backers who pledge to invest a certain amount or percentage of every deal the angel makes.
Colorado-based Foundry Group is among those testing AngelList's new syndication features, setting up a fund called FG Angels that targets making $2.5 million in investments.
"After joking that every VC in
the US was at this moment discussing AngelList and how it might, or might not,
impact them, we decided to do something," Foundry Group Managing Director Brad Feld wrote in a blog on
Tuesday. "Rather than talk, we decided to participate."
About a dozen syndicate deals have happened and more than 250 syndicates have
sprung up on AngelList since co-founder Naval Ravikant introduced them in
August.Cromwell Schubarth is the Senior Technology Reporter at the Business Journal. His phone number is 408.299.1823.
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