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Raising Money On AngelList: 21 Tips From Two Active Angels

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Re: Raising Money On AngelList: 21 Tips From Two Active Angels

#11

Post by nivi »

nivi wrote: post #5
nirvana wrote: post #2

I read the Angel List T&C. It says they (the founders of Angel List) have the right to participate in any fundraising up to %50 of the amount raised, on the same terms as others. This means, if you find an investor who brings something other than money, and you agree to terms that take this into account, the owners of angel list can get in on half of the deal at those terms. So, would you agree to the same terms with…

Hey, this is Nivi from AngelList. That is a dumb clause. We are changing it. We will also look through the terms for other dumb clauses. I'll follow up on this thread with the revisions later today. People submit bug reports to us all the time. This is the first time we've gotten a legal one. Thank you.

We went through the terms and deleted the following:

DELETED: "We also have the right to invest in any business on the same terms as are offered to Investors, or on better terms if we are able to negotiate them with Entrepreneurs, and we have no obligation to make those investment opportunities available to anyone else."

It was dumb. We also made a few other changes. Let us know if you have any other feedback http://angel.co/terms

We've taken small allocations in a few investments on the site but we've had to talk our way into the deal like every other investor in the world.

The terms are still not perfect nor will they ever be. I would like to rewrite and simplify them one day but that might be wishful thinking.

Thanks to our counsel for the quick fixes. And thanks for the bug report.

Re: Raising Money On AngelList: 21 Tips From Two Active Angels

#12

Post by dshah »

nivi wrote: post #11
nivi wrote: post #5

Earlier quoted context omitted.

Hey, this is Nivi from AngelList. That is a dumb clause. We are changing it. We will also look through the terms for other dumb clauses. I'll follow up on this thread with the revisions later today. People submit bug reports to us all the time. This is the first time we've gotten a legal one. Thank you.

We went through the terms and deleted the following: DELETED: "We also have the right to invest in any business on the same terms as are offered to Investors, or on better terms if we are able to negotiate them with Entrepreneurs, and we have no obligation to make those investment opportunities available to anyone else." It was dumb. We also made a few other changes. Let us know if you have any other feedback http://…

Awesome. Time elapsed between the reporting of the bug, acknowledgement, resolution and release: < 3 hours.

Re: Raising Money On AngelList: 21 Tips From Two Active Angels

#13

Post by dshah »

johnrob wrote: post #10

21. The best thing you can do is get traction Why is the supposedly most important idea listed last? It's no wonder startups waste time on the wrong things, if this is the way advice is structured.

Sorry about that. The tips weren't listed in any sort of "priority" order. The reason the traction one was last wasn't because it's the least important, but because I thought it was a good way to "close" the article.

Often, the last item in a list like this gets read much more often than the middle items.

In any case, it's a fair point.

Re: Raising Money On AngelList: 21 Tips From Two Active Angels

#14

Post by OpenAmazing »

nivi wrote: post #5
nirvana wrote: post #2

I read the Angel List T&C. It says they (the founders of Angel List) have the right to participate in any fundraising up to %50 of the amount raised, on the same terms as others. This means, if you find an investor who brings something other than money, and you agree to terms that take this into account, the owners of angel list can get in on half of the deal at those terms. So, would you agree to the same terms with…

Hey, this is Nivi from AngelList. That is a dumb clause. We are changing it. We will also look through the terms for other dumb clauses. I'll follow up on this thread with the revisions later today. People submit bug reports to us all the time. This is the first time we've gotten a legal one. Thank you.

Wow. Imagine if DropBox dealt with problems and potential PR disasters this way...

I was moments away from completely writing off AngelList when I read the parent comment. Now they seem cool. Disaster averted.

Re: Raising Money On AngelList: 21 Tips From Two Active Angels

#15

Post by dools »

This is kind of O.T but I've never really understood this:

"Don't wait too late in your rounds fund raise before you apply"

When you "do a round" is there some sort of legally binding time and funding limit? Or is this just some kind of self imposed thing (like when you're selling vacuum cleaners door to door and say to the customer "Better get in quick! We only have 5 vacuum cleaners left and they're selling fast!").

Re: Raising Money On AngelList: 21 Tips From Two Active Angels

#16

Post by EwanG »

dshah wrote: post #12
nivi wrote: post #11

Earlier quoted context omitted.

We went through the terms and deleted the following: DELETED: "We also have the right to invest in any business on the same terms as are offered to Investors, or on better terms if we are able to negotiate them with Entrepreneurs, and we have no obligation to make those investment opportunities available to anyone else." It was dumb. We also made a few other changes. Let us know if you have any other feedback http://…

Awesome. Time elapsed between the reporting of the bug, acknowledgement, resolution and release: < 3 hours.

Really. I'm half tempted to start a startup just to be able to use a service that is that responsive. Anyone want to push forward with the Trails version of Google Street with me? :-)

Re: Raising Money On AngelList: 21 Tips From Two Active Angels

#17

Post by maaku »

dools wrote: post #15

This is kind of O.T but I've never really understood this: "Don't wait too late in your rounds fund raise before you apply" When you "do a round" is there some sort of legally binding time and funding limit? Or is this just some kind of self imposed thing (like when you're selling vacuum cleaners door to door and say to the customer "Better get in quick! We only have 5 vacuum cleaners left and they're selling fast!")…

Yes, the rounds usually have an end date written into the term sheets.
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