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A few months ago AngelList announced Syndicates - enabling investors on AngelList to create fund-like groups of investors to invest together in AngelList companies (following a single lead investor). How AngelList Syndicates (and FG Angels) Works. We were the first formal venture fund to do this.
A few months ago AngelList announced Syndicates – enabling investors on AngelList to create fund-like groups of investors to invest together in AngelList companies (following a single lead investor). How AngelList Syndicates (and FG Angels) Works. We were the first formal venture fund to do this.
My key takeaways from talking to roughly 40 institutionalinvestors in the valley about investing to an European startup are: Traction cures all ills. Jeff Clavier, Seed stage investor in 90+ consumer internet startups, said: We all have a different approach to non Silicon Valley opportunities. They take international Founders.
Excel and Google simply aren’t going to cut it if you expect to build a high quality institutionalinvestor base.”. Beacon technology system , which automatically outbound-solicits a universe of over 10,000 institutionalinvestors, without requiring LPs to register for an online network of funds. .
Since I became an institutionalinvestor, my #1 learning is: this is a highly unusual and somewhat baffling industry. Disruptable Pattern #5: Institutionalinvestors are eager to cut larger checks rather than smaller ones. This is like a chef who likes to buy a whole cow in order to serve a client one hamburger.
Non-institutional Leads. I’ve seen a few cases now where a number of very high-quality institutionalinvestors were interested in investing in a company at valuation, but a non-institutionalinvestor was willing to set terms 1.5 – 2X higher than that valuation. Alternative funding sources.
TL;DR: In a market that has historically idolized huge, splashy financings and exits, an increasing number of entrepreneurs are realizing that everyone else’s definition of success — particularly among certain large VCs — isn’t necessarily aligned with their own. If I put in $2MM and get out $10MM in a $50MM exit, that’s a solid 5x return.
But we behave pretty much exactly the same way in those companies as we do when we are the lead and only institutionalinvestor. Post Revenue: 6 1/2 (the 1/2 is for a company that had revenue, but did a major product pivot as part of the financing). Syndicate Composition: NextView + Seed Funds + Angels: 9. Consumer: 9.
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