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
#2I 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 a star like ashton kutcher, or dave mcclure as you would to someone you've never heard of who is just offering money? (Personally, I might not give either of the "stars" better terms, because I would want a venture investment to be about money, not intangibles, but that's me.)
I don't know the people behind angel list, so, lets presume they are great. But I'm wary of entering into a situation where, unless you read the details of the T&C and discover it, you've agreed to give people you don't know half of your funding round, on terms that you might have set based on qualities that the angel list people don't also possess.
This is what prevented me from getting an account there, and without an account it is hard to know much about how angel list works, or what it is like. (so, feel free to enlighten me.)
I'm not bashing them, just expressing a concern that I obviously can't express there (because I'd have to agree to the T&C to open an account.) It's also quite possible I'm wrong or misread the T&C.
Re: Raising Money On AngelList: 21 Tips From Two Active Angels
#3I 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…
From what I understand, signing up and creating a startup profile are different tasks. For example, i've already signed up for AL, but have yet to actually create my next startup profile or actively pursue funding. I figured it's a way to take a peek w/o any commitments.
Your point though is well taken though.
Re: Raising Money On AngelList: 21 Tips From Two Active Angels
#4I 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…
That's interesting. I didn't bother reading the T&C. I think if AngelList wants to invest, that's a really good thing for most startups. They see thousands of deals.
In my experience, Nivi and Naval have been amazingly helpful to our startup.
Re: Raising Money On AngelList: 21 Tips From Two Active Angels
#5I 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.
Re: Raising Money On AngelList: 21 Tips From Two Active Angels
#6I 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…
Everybody in the round gets in at the same terms. I've invested in 50+ deals and never had one person get preferential treatment like that.
Re: Raising Money On AngelList: 21 Tips From Two Active Angels
#7I 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.
This is an example of great customer service. AngelList is a marketplace product. We and the investors are users/customers.
The clause was probably an idea that sounded good eons ago when they started AngelList and now makes no sense at all.
No excuses or delays. Nivi iterates immediately and agrees to update us here. Issue squashed. Trust maintained...even improved.
I love seeing role models role-model the fundamentals of running a startup.
Re: Raising Money On AngelList: 21 Tips From Two Active Angels
#8I 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…
Everybody in the round gets in at the same terms. I've invested in 50+ deals and never had one person get preferential treatment like that.
Yes, everyone gets in on the same terms, but you also have a choice about who you agree to sell to, presuming you have enough interest to do the round. If I'm raising $100k, and you, dave mcclure and donald trump are all willing to put up $50k, I'm going to pick you and dave mcclure, and exclude donald trump because I don't want him as an investor in my company. If the Angel List founders participated, then they might put up $50k, and reduce the participation of you and dave mcclure to $25k each, when you wanted to buy a larger chunk.
Re: Raising Money On AngelList: 21 Tips From Two Active Angels
#9I 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.
Thanks for the response! I'm sure having you as an investor would be an asset, it was just having it as a requirement that concerned me.
Re: Raising Money On AngelList: 21 Tips From Two Active Angels
#1021. 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.