[Interesting rumor: AngelList will soon have an ‘autofund’ option. When/if this goes live, when I syndicate something, the most bold members of the syndicate will automatically have their $1-25k wired to the syndicate—without any work! They’ll just get an email saying ‘You funded $1,500 in Calm.com. Sign here,’ or something like that. This will make the process even more compelling and fast for founders because they will be able to understand that the syndicate is an instant funder – faster than a billionaire angel!]
I love AngelList. The company is a near-perfect example of execution and it’s mission is one I find both exceptionally interesting and providing positive impact in the world.
There are two fascinating things that I think are happening with AngelList (I have no internal confirmation - just a guess), but that I don’t think many people are talking about.
The first is Private Syndicates, which allow LPs and Angels to make use of the Syndicate infrastructure without incurring the perceived cost of “making my information more public.” A syndicate lead simply shares the list of his backers, says he’ll only share information with them, and uses the privacy controls on AngelList properly. This means that a whole new type of founder could be open to allowing a Syndicate to join their round (one focused on preserving the secret, in the Thiel sense of the term).
The second is the concept of Capital Call, which is what Jason hints at above. This means that you, as an angel, could effectively mirror the type of relationship VCs have with LPs — you only call the capital down when you need it, but you have a strong commitment for the money, so the founder doesn’t need to worry if your backers will close or not.
Quietly, AngelList is basically turning all the mechanics of private market investing into a standard (and likely, from there, an API). It’s unbelievably exciting (if you nerd out on stuff like this).