AngelList, we are live!
We saw the success that several VCs in the US were having. In particular, the team at Foundry Group has had incredible success with their FG Angels syndicate on AngelList with 42 companies they have backed.
This was not an impulsive decision — in fact we have been following Angellist for quite some time and have had an LVP profile on there during that time. There are some interesting data points to consider. For example, the AngelList website now ranked 1,959 (up from about 7,000 at end of 2013) on Alexa (as this is being written), and over $100 million was raised on AngelList in 2014 by 243 startups from 2,673 investors. That is impressive!
We are familiar with regular VC syndicates and have co-invested with many VCs including Sequoia Capital, Accel Partners, Index Ventures, Initial Capital, Lifeline Ventures, Atomico, Creandum, DN Capital, Northzone, Nokia Growth Partners, Qualcomm Ventures and several others.
Our strategy for our syndicate on AngelList will be to supplement the deals we invest in to help close funding rounds faster and therefore save the founders time which can be better spent executing their plans. We would typically expect to invest more in each company from our fund than from our syndicate and all of the economics of the syndicate (the carry) goes to our fund. We expect to back around 5 companies in 2015 through our AngelList syndicate, each of which will have been through the LVP analysis process: is the team great? is their idea truly scalable? is the market opportunity really there? Basically the same process we have been using in investing across the game sector in companies such as Supercell, Unity, Peak, PlayRaven, Boomlagoon and Omnidrone.
We are looking forward to participating in crowdfunding with AngelList and continuing to back the best founders in the game sector.