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AngelList Braces for Rainy Days as Startup Seed Funding Falls

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Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#31

Post by toomuchtodo »

kapilkale wrote: post #19
swanson wrote: post #16

> Investors can buy a share of the fund, called the Access Fund, for $100,000 or more. This is really interesting to me, but I wish it were at a $10k level. That would be a no-brainer shift for me to move some money going into Vanguard into this, but I'm in that weird spot where I'm not rich enough to have $100k to toss around but am maxing out a Roth IRA and looking for more upside.

Agreed; we do this for regulatory reasons. We've got a limit on how many investors we can have per fund, and we can't sidestep that requirement by spinning up duplicate funds. The high minimum investment is our equivalent of surge pricing. We're working on it, though!

Anything stopping me from buying one of your $100k shares with an LLC that has multiple members?

Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#32

Post by daxorid »

rch wrote: post #5

Weird article. AngelList is raising money to make new investments and reports an unrealized 46% IRR, and that somehow makes for a gloomy story.

Are you seriously suggesting that 46% unrealized gains for a primarily illiquid equity portfolio heading into rate hikes is a good thing?

Unrealized gains are meaningless without liquidity.

Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#33

Post by kapilkale »

toomuchtodo wrote: post #31
kapilkale wrote: post #19

Earlier quoted context omitted.

Agreed; we do this for regulatory reasons. We've got a limit on how many investors we can have per fund, and we can't sidestep that requirement by spinning up duplicate funds. The high minimum investment is our equivalent of surge pricing. We're working on it, though!

Anything stopping me from buying one of your $100k shares with an LLC that has multiple members?

No issues with that on our end. Plenty of investors using funds or LLCs with multiple members to invest.

You'll want to work with a lawyer to structure the vehicle, and have a full understanding of legal, compliance and tax considerations associated with it.

Edit: the entity investing must be accredited. Here's an overview of the criteria:

https://angel.co/help/accreditation/what-is-an-accredited-in...

Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#34

Post by hkmurakami »

daxorid wrote: post #32
rch wrote: post #5

Weird article. AngelList is raising money to make new investments and reports an unrealized 46% IRR, and that somehow makes for a gloomy story.

Are you seriously suggesting that 46% unrealized gains for a primarily illiquid equity portfolio heading into rate hikes is a good thing? Unrealized gains are meaningless without liquidity.

The best funds and GPs seem to consistently talk down their unrealized gains as paper gains that need to be steeply discounted. They cast doubt onto themselves willingly, preaching instead to look at cash on cash returns.

Take that as you may.

Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#36

Post by brianfitz »

kapilkale wrote: post #33
toomuchtodo wrote: post #31

Earlier quoted context omitted.

Anything stopping me from buying one of your $100k shares with an LLC that has multiple members?

No issues with that on our end. Plenty of investors using funds or LLCs with multiple members to invest. You'll want to work with a lawyer to structure the vehicle, and have a full understanding of legal, compliance and tax considerations associated with it. Edit: the entity investing must be accredited. Here's an overview of the criteria: https://angel.co/help/accreditation/what-is-an-accredited-in...

Accredited investors only? If so, even lowering the floor to $10k might not help the OP (geared toward helping swanson with the details rather than any kind of suggestion).

Edit: and Kapil has answered :-)

Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#37

Post by mangeletti »

callmeed wrote: post #35
mangeletti wrote: post #25

I'm going to make a prediction. This isn't going to be popular, and it's only my opinion and doesn't constitute advice: This fund will not earn its investors a positive return.

negative return is a thing

Thanks. I updated the comment.

Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#38

Post by sotojuan »

cloudjacker wrote: post #13
sotojuan wrote: post #10

Earlier quoted context omitted.

Angel List the site is fine, but they really need some sort of verification or moderation. When I was looking for an internship there were a bunch of sketchy non-companies willing to pay me... $0. After I graduated it was easier to find real companies, but then it's just the same as other job sites with companies that get back to you months after applying. The design and look of the site comes off as more professiona…

ever try a recruitment agency?

Nope. Like I said, I was actually successful with Angel List—you just have to have a good profile and either write good introductions or contact the company directly. It could just use a cleanup and moderation.

Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#39

Post by tedmiston »

dsr_ wrote: post #27
mangeletti wrote: post #25

I'm going to make a prediction. This isn't going to be popular, and it's only my opinion and doesn't constitute advice: This fund will not earn its investors a positive return.

Not a great prediction unless you give a time window, too. 50% within a month? Six months? a year?

And the short term doesn't matter... 8–10 years, or whenever every company fails, sells, or IPOs.

Re: AngelList Braces for Rainy Days as Startup Seed Funding Falls

#40

Post by kapilkale »

mangeletti wrote: post #37
callmeed wrote: post #35

Earlier quoted context omitted.

negative return is a thing

Thanks. I updated the comment.

Oh man, I'd take this bet!

Loser donates money to the winner's charity of choice. Pick an amount up to $200, and tweet @kapil so it's in the public record.

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