To attract investors on AngelList, publish a startup page with a short teaser, then get people with large followings and your own network to follow it on the same day so it starts to trend. AngelList decides what is trending by how many people follow a startup and request to meet with it. This page also covers what AngelList is and what it offers founders.
When it comes to raising funds for your startup, connecting with venture capitalists and angel investors is a top priority. Many startup founders turn to platforms like AngelList to access funds.
According to AngelList’s 2021 annual report, more than 800 VCs were running funds and syndicates on AngelList. In 2021, approximately 7,000 startups raised more than $3.6 billion on the platform, and VCs made more than 11,000 investments through it. The site oversaw about $10 billion of customer assets in 2021. These are 2021 figures, so check AngelList for current numbers.
With so much money flowing through the AngelList website, startup founders are understandably curious about the platform. In this article we’ll detail what AngelList investing has to offer startup founders and how they can use it to connect with investors.
What is AngelList?
AngelList is a platform that connects startup founders with investors, candidates, and incubators. It was founded in 2010 as an online introduction board for tech startups that needed seed funding. The original “angel list” was simply a list of 25 investors with whom AngelList’s founders shared potential companies to invest in.
The platform has since grown into as an avenue for startups to increase visibility and raise capital with angel investors free of charge. In December 2021, AngelList closed a $25 million fund to back startups. The company also features syndicates to facilitate startup financing with accredited investors. AngelList Syndicates allow startups to raise money from accredited investors investing alongside prominent angel investors.
Since its inception, AngelList has also created a platform for job seekers. The jobs side of the business, now run as Wellfound, allows candidates to connect with companies looking to add team members.
Benefits for startups
In its long track record AngelList has demonstrated ample value for startup founders. Let’s take a look at some of the selling points for tech startup founders:
- Standardized syndicate paperwork reduces the legal and admin work of closing a round
- Funds and syndicates on the platform have backed a number of well-known companies
- Active sectors have included Fintech, Healthtech, Web3, Biotech, and AI / ML
In addition to these benefits, AngelList has changed the way early stage startup founders access venture funds. Oftentimes, the world of venture capital is seen as a gated community because many startup founders don’t have the access or capital necessary to acquire funding opportunities. AngelList has eliminated many of these barriers and helped more startups get funded.
How to connect with investors
AngelList’s features and names have changed over time, so confirm the current steps on the platform. Before you begin connecting with investors, it’s important to do your homework. Check out what other founders in your industry are doing on AngelList. How are they promoting their startups? What can you borrow and do differently to set yourself apart from your competitors? When it comes to getting noticed by investors on AngelList, your profile is everything. Look for ways to make your profile unique.
In order to connect with investors on AngelList, startup founders need to stand out. The best way to do this is to start trending on the platform. AngelList uses social mechanics to determine whether a new startup is interesting. The site determines which startups are trending and hot by how many people are following and requesting to meet with you. To trend you need a published page and a quality following. Here’s how to achieve it.
- Publish your page: Your page should contain all your basic information and a good teaser. A good teaser is a short blurb about what you are doing. You don’t want to give too much away because your competition can use this against you. You want to give just enough information so that people become intrigued and want to follow your progress.
- Promotion: You need to get people to promote you. Reach out to people with large followings and get them to promote your page on the same day you publish it. You’re not asking these people to invest, you just want social validation to get on the hype cycle and help you trend. Also, ask your partners, employees, advisors, customers, and investors (if you have them) to join AngelList, set up profiles, and follow your startup’s page. If successful, this will trigger social signals and your company should start to trend.
To learn more about startup investing and funding, see if you qualify for membership to join Founders Network.
Frequently asked questions
What is AngelList?
AngelList is a platform that connects startup founders with investors, candidates, and incubators. It was founded in 2010 as an online introduction board for tech startups that needed seed funding.
Is AngelList free for startups?
Per AngelList, startups can increase visibility and raise capital with angel investors free of charge. The platform also offers syndicates, which let startups raise money from accredited investors investing alongside prominent angels.
How do you get noticed by investors on AngelList?
Your profile has to stand out, and the best route is to trend. That takes a published page and a quality following, so ask partners, employees, advisors, customers, and investors to set up profiles and follow your page.
What should go in your AngelList teaser?
A short blurb about what you are doing. Don't give too much away, because competitors can use it, but share enough that people want to follow your progress.
