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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

#41

Post by swanson »

hkmurakami wrote: post #18
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.

Be careful to examine what's actually in the fund as your underlying. This isn't like buying the S&P500 where the sector exposure is well defined. One "startup index fund" can perform very disparately from another "startup index fund". edit: If there's data that shows the performance of a basket of random 100 company samples being equivalent to any number of other random 100 company samples, then I am happy to admit…

Yep -- I understand what I'm buying (well, not buying yet...). Something like this would be a great for a Taleb-esque 90/10 barbell I think -- 90% in target-date vanguard funds and 10% in startup investments by proxy.

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

#42

Post by hammock »

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.

You can't really max out a Roth IRA (that's an illusion). Backdoor contributions are unlimited.

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

#43

Post by brianbreslin »

hammock wrote: post #42
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.

You can't really max out a Roth IRA (that's an illusion). Backdoor contributions are unlimited.

what do you mean? would love to know more about this.

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

#44

Post by mbil »

hammock wrote: post #42
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.

You can't really max out a Roth IRA (that's an illusion). Backdoor contributions are unlimited.

Do you mean it's possible to contribute more than the contribution limit in a given tax year?

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

#45

Post by h4nkoslo »

hammock wrote: post #42
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.

You can't really max out a Roth IRA (that's an illusion). Backdoor contributions are unlimited.

(For the sister posts - it's called a backdoor Roth. Make nondeductible contributions to a "vanilla" IRA, and immediately convert.)

https://www.bogleheads.org/wiki/Backdoor_Roth_IRA

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

#46

Post by MichaelBurge »

logicallee wrote: post #26

this is absolutely ridiculous. there is next to no seed funding in existence. Let me tell you how the seed market for startups is: imagine you had a orchard, right, but instead of apples it grew dollar bills, and you just had to water them or they wouldn't grow. Under this scenario a guy with acres of dollar-tree bills could not get funding to water them with some kind of farm equipment. That's the state of the start…

The government already does fund small businesses, by guaranteeing SBA loans.

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

#47

Post by hluska »

sotojuan wrote: post #10
let1kbl00m wrote: post #9

You can't even raise money on AngelList. It's just yet another shitty (okay, decent) jobs site. Why the hell AngelList can't create Kickerstart-for-Startups after all these years and significant funding is beyond comprehension. 1. Have startups fill out a YC-like applications. 2. Get investors to write the good checks. If AngelList can't do this then it doesn't need to exist.

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…

Welcome to the world of software development, where you get wonderful 'offers' like:

1.) I have an idea to build the $hot_startup of $sketchy_vertical. Just sign this NDA, build the whole thing for me and I'll give you 0.01%. It will be huge!!

2.) I have an idea and I'm this close to raising a sees round from $famous_investor. I just need you to build a simple (fully functional) proof of concept. I'll give you a great job after I raise the cash.

3.) Can't you just build this? It should be easy for you...

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

#48

Post by toomuchtodo »

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...

Thank you! I'll get in touch shortly.

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

#49

Post by benmarten »

hammock wrote: post #42
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.

You can't really max out a Roth IRA (that's an illusion). Backdoor contributions are unlimited.

Weird, i thought its 5500/year. That's what you can do with betterment at least....

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

#50

Post by daphinz »

logicallee wrote: post #26

this is absolutely ridiculous. there is next to no seed funding in existence. Let me tell you how the seed market for startups is: imagine you had a orchard, right, but instead of apples it grew dollar bills, and you just had to water them or they wouldn't grow. Under this scenario a guy with acres of dollar-tree bills could not get funding to water them with some kind of farm equipment. That's the state of the start…

You're not entitled to seed funding. However the government does offer SBIR grants of ~225k, from all branches of the government, DOJ, NIH, NSF etc. Odds of getting the grant range from 1/5 to 1/12 depending on the year. With solicitations twice a year.
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