Last time we got this comment, we checked the #'s and leads put in 16% of the investment on average.

Compare that to 1-5% for a typical VC fund. Partners in a VC fund also take out 10-20% of the fund in management fees.

You can learn more here https://angel.co/economics-syndicates

Some leads have low skin in the game. In that case, you can always opt out of their investments. Or invest in our funds and we'll make the decision for you (for no additional cost) http://angel.co/funds

P.S. We don't hate VCs. They are among our users and customers.

Hi Nivi,

I took a look at some data a while ago, and your "16% on average" sounds a bit off.

Is it weighted on the amount of investments, or not?

The real story is 46% unrealized returns on 2013 syndicate investments. Which is in the upper top quartile of VC.

And A-List, a premium recruiting product for busy companies. That complements our free recruiting product with 180K active candidates.

Down markets are a good time to invest, but we're not anticipating one.

http://angel.co/returns http://alist.co

46% unrealized returns based on follow on round valuations. Take that as you wish.

Care to elaborate on the methodology for how you pick companies? Does AngelList act like its own VC internally?

The fund invests in a subset of syndicated deals. About half of them historically. The investment team consists of experienced investors including Naval (my co-founder). Details here https://angel.co/access-fund

That's a nice advantage you have going -- normally access to the best deals is hard to come by, but by providing the tools by which stand out individuals can achieve leverage in their own deal making through syndication (you're both a technology provider and a channel marketing partner to them), you get their deal flow in return.

Yes, thanks and fixed. :-)

We call them “1-man startups” internally. Hence the title. =) Actual 1-person startups are an interesting topic too, for a future post.

Waiting for that post! ;)

Me too!

Hey, this is Nivi from AngelList. Please let me know if you have any questions. And please keep the comments coming. We are iterating on it right now.

are you going to internationalize the salary for non US locations.

£ for the Uk and Eros for the Eurozone countrys (BTW for some eu countrys you need to mention if you get the 13th Month or not)

We don't track of what currency job postings are in, so the stats for non-USD job listings would be confusing. Some people are posting in USD, others in Euros, etc.

It's something we should do.

For now, you can see what jobs we have in any location at angel.co/jobs (filter by location).

Could you add in sys admins and devops?

The small investors are grouped together into a fund. So the startup only sees one new entry on the cap table. The overhead is the same as adding a single large investor to the round.

More details here http://angel.co/help/invest.

Let me know if you have any more questions.

Thanks! This sounds great.

Here's the AngelList take on why you want to avoid general solicitation and non-accredited investors https://angel.co/help/regulations#gs

Nivi from AngelList here. Please me know if you have any questions.

Just wanted to say thanks, you're making my life a lot easier.

+1. Thanks Nivi! You made our last funding effort so much easier, we can't say enough good things about angel list. I look forward to trying angel docs for my next startup when the time comes!

Thanks for doing this - while certainly it existed before in Clerky I believe having it in angel list lends credibility which will ultimately save a lot of money and time for people.

AngelList Docs user here.

The docs make it pretty much a tabular affair. Choose the cap, the money, the discount, acquisition multiples, etc and you are done.

This makes for easy work, both with your lawyer and the investors.

Yep, it is startups with 10+ intros only. We get about 100 startup profiles a day.

We built references to help solve this problem. You can get references from anyone and their followers will be notified. You should only ask for references from people you already know well. We ban people who spam investors (or anyone), asking for references. We're also working on other tools to help the disconnected get connected.