AngelList is Funding the Minor League of VC

AngelList is funding the minor leagues of venture capital (and giving founders $500,000 to start)

“We’re creating hundreds of new VCs,” says Ravikant, who argues the venture space is anything but overcrowded. “Every time I hear someone say there are too many VC funds, it is always a venture capitalist saying it, not entrepreneurs. Entrepreneurs want to raise money from other entrepreneurs.”

Angel investors have been a force in Silicon Valley for decades, but they often lack the capital to make bigger investments. Angel Funds are designed connect money with insiders to pick early winners. The new financing from AngelList’s Maiden Lane and other venture firms will give dozens of startup operators on the AngelList platform between $500,000 to a $1 million (a few will be larger) to make their first investments, with additional funds from their own backers. The funds are due to be invested within one year. Operators are drawn from successful syndicate leads, as well as startup founders selected by AngelList. Angel Fund leads earn 15% of profits from any deal, with 5% going to AngelList.

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I work for True Ventures, an early-stage venture capital fund with offices in Northern Virginia, San Francisco and Palo Alto. We partner with promising entrepreneurs at the earliest stages in the technology market providing hands-on management support to guide our portfolio companies through the challenges of early growth. View all posts by adam →