California based AngelList, a platform that helps startups in fund raising, has also cracked their own funding round. As per the reports, AngeLlist has raised around USD 24 million at USD 150 mn valuation led by Atlas Venture & Google Ventures along-with 100 other institutions and individuals.
Some of the renowned names who invested in the company include Kleiner Perkins Caufield & Byers, Draper Fisher Jurvetson, Marc Andreessen, Max Levchin and Ev Williams. According to Fortune, “None of the venture investors will receive a seat on the AngelList board of directors, nor are the equity investments tied to any proprietary insights.”
The rumors of AngelList raising funds has been in news since the past one year when Techcrunch reported in December that it will be raising a round of financing, which will be led by multiple investors including Google Ventures and Andreessen Horowitz, at a valuation of USD 150 million. Previously in June Fortune had also reported regarding the same.
AngelList was previously a blog named Venture Hacks, which used to instruct and teach startups on how to negotiate terms with investors. For them the goal was to make fundraising easier for startups, especially the ones with merit but without connections, so it tried to make the funding process more open and democratic.
Previously, startups were not allowed to publicly solicit investors, and this was considered illegal, but the new SEC’s rules on general solicitation under the JOBS ACT make it possible for startups to publicly solicit investors. Around 1,000 companies have applied to publicly solicit funds on AngelList, startups that will be publicly raising funds include SoundFocus etc.
AngelList has an Invest Online option which helps startups to directly raise money on the site and AngeLlist takes 10% carry fee off returns on every deal, till now 70 such fundings have been completed and 41 are active, with a total of 1,380 investors. Recently, it had also announced Syndicates which would allow the lead investor in a startup to solicit for other investors to join them in exchange to carry on the deal.
Syndicates let the investors earn a portion of the profits of a fund that is paid to a fund’s manager, when they syndicate a deal. Instead of a single person coming up with the entire funding amount, the deal is shared with investors under the conditions of the individual earning a certain portion of the carry. Hence the syndicators get carry and leverage on their personal investments and the co-investors in the syndicate get the benefit of the Syndicator’s early access to startups and ongoing governance and value-add.
As per the company, till now it has facilitated around USD 200 million in investments, with USD 186 million through introductions and USD 14 million through a new, more direct “invest online” product. The platform has around 21,000 investors on the platform and about 1,300 companies have raised funding on it.
Along with its funding platform, AngeLlist’s recruitment platform is also scaling new heights, currently the site has 37,000 candidates, including 13,000 developers, 4,000 designers and 6,000 product managers. The platform has made 3,000 hires and more than 800 companies have used it for hiring purpose.
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