What’s the Real Deal with AngelList? by Mark Suster

TL;DR - At the time of writing (2011), AngelList was a controversial new player in the VC scene with pros and cons for both investors and entrepreneurs.

Helpfulness - 3

Tags - notable investors, angels, new types of vc

Questions addressed:

  • What is AngelList?
  • What did people in the VC world think of the platform when it first came out?
  • What are the pros and cons of the platform for investors and for entrepreneurs?

Summary:

  • AngelList is a platform (relatively new at the time of writing, 2011) that connects entrepreneurs with angel investors.
  • Fans of the platform like that it helps connect first-time founders with investors.
  • Critics worry that it will encourage investing without establishing relationships or just following trendy deals.
  • Others consider AngelList more of a communication tool like email than an investment philosophy (therefore no reason for controversy).
  • AngelList can be “more noise than signal,” especially for VCs whose inboxes are already overflowing with potential deals.
  • It can be a useful resource for founders to fill out a round, but shouldn’t replace the hard work of building relationships and finding the right core investors.

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