They invite you to invest in individual deals, and you can join or pass on each one.Īs of 2020, it looks like almost everything on the platform has moved to syndicates or funds, with few opportunities to invest in one-off deals – which is probably a good thing. I also joined a few syndicates, which are groups created by individuals who invest in many startups each year. So, I started investing in both individual companies and funds, such as the Consumer Fund I and Enterprise Fund I. I liked the idea of helping companies grow and potentially earning well above what the public markets could offer. I had several crises in the early years that made me paranoid about the survival of this business, so I was extremely conservative and didn’t put much in the markets.Įven back in 2014, the S&P 500 seemed expensive, so I looked at alternatives, and angel investing came up as one option. In early 2014, I was sitting on a lot of cash and wasn’t sure what to do with it.

I’ve never used any of those features, so this review will be about investing. Since that time, the site has expanded to offer job boards, social networking, recruiting, and even promotions for new products and services. The average amount invested by individual angels spans a wide range, from $5K to $100K, but the median is $25K.Īt those levels, angel investing was previously only viable for the wealthy.ĪngelList launched in 2011 as a platform that allowed “normal people” to invest directly in startups, but you still had to be an accredited investor (AKA: well-off, but not necessarily “wealthy”).Īnd it allowed startups to raise money via crowdfunding instead of the traditional route (friends and family, wealthy individuals, and VCs). Traditionally, “ angel investors” were wealthy individuals who invested in early-stage startups with a high risk of failure, in exchange for equity or convertible debt.Īs an asset class, angel investments have an even more skewed risk/return profile than venture capital: the vast majority of companies will fail, but if you invest in one that becomes 100x or 1000x more valuable, you could still earn a high overall return.

Also, the quality of the crowdfunding platform often matters more than the underlying asset.”Īnd here’s the longer version, with my experience on AngelList since 2014: What is Angel Investing, and How Does AngelList Work? My short answer would be: “Angel investments can be worthwhile in specific situations, but only once you have a substantial, traditional portfolio first. Should you allocate a percentage of your investments to this new asset class, or is it a waste of time and money? In my most recent portfolio update, I received a lot of questions and comments about the 6% of my portfolio currently allocated to angel investments.Ĭrowdfunding across various asset classes – real estate, peer-to-peer lending, and tech startups – has exploded over the past decade.

Edu kids angelist