More and more startups decide to work with business angels. However, finding the right investor who is truly committed to helping your startup is sometimes a real challenge. So how do you reach out to business angels and convince them to bring an innovative idea to life? A helpful tool is AngelList, an investment platform that connects these two sides of the business world.
AngelList – table of contents:
What is AngelList?
AngelList is an American website which was created in 2010 by entrepreneurs Naval Ravikant and Babak Nivi. Their main idea was to connect budding entrepreneurs in need of support with the right investors ready to provide it to them as soon as possible. The portal became a directory of angel investors willing to invest their money in emerging companies.
The website has now been expanded to include bulletin boards and social networks. Even a recruitment option has been introduced. AngelList thus helps business angels, people interested in launching a startup and startups themselves, streamlining contacts between investors, talent and innovative businesses. At the same time, AngelList enables startups to efficiently raise external capital from business angels. Thus, they can obtain funding from accredited sources.
How does it work?
The first step you need to take to use AngelList’s services is to create your profile. Such a starter profile becomes visible to potential investors, to whom it can be easily shared. At the same time, users can update it and the investor list at any time. Therefore, the best solution is to create an account as early as possible, which can then be adjusted accordingly depending on your needs.
In order to get in touch with specific investors on AngelList, submit a private application. After receiving an approval, the portal, analyzing the startup’s current stage of development, the nearest market it operates in or even its location, will generate a specially tailored list of recommended angel investors.
However, it is worth noting that the final selection of an investor from the received list is left to startup founders. Startup founders analyze the available information, conduct their own research and compare the offers and activities of various investors to finally start cooperation with the one best suited to the profile of their business.
Whenever a startup swipes a given investor to the right, they automatically receive information about the startup interested in cooperation, along with the recommendation from the administrators of the AngelList portal. At the same time, the pre-selected business angel can start investing in the given business after liking the startup back.
The portal’s administrators play an extremely important role in this process. It is thanks to them that instead of wasting time browsing through the accounts of thousands of companies, investors can focus on the businesses that are most interesting to them, whose profiles are sent through AngelList directly to their inbox.
However, the services offered by the AngelList website are not limited to connecting entrepreneurs who are just beginning to build their position in the market with business angels interested in their ideas. AngelList is also a valuable platform for those looking to get a job in a growing startup.
As it is in the case of startups and investors, the site makes it easier to connect with potential employees. A job seeker initially creates a free profile that best represents their skills and previous experience. Then, while browsing ads of companies looking for new employees, the candidate has a chance to like the offers that particularly caught their attention. After that, all they have to do is to wait to see if the chosen business is interested in working with them.
Benefits of AngelList
The primary benefit of using the features offered by the AngelList website is efficient access to companies with which it is difficult to make closer contact without the right intermediary. At the same time, the platform strives to check the offers of entrepreneurs in the best possible way, which effectively minimizes the risk of making a bad decision.
AngelList stands out as a form of assistance provided to startups and insufficiently experienced entrepreneurs. Through this website, startup founders can quickly raise money from investors at favorable market conditions.
Another big advantage is that it is absolutely free to use AngelList. As a result, even startups, which often lack funds for basic business operations at the beginning of their development, have a chance to use the potential of the platform.
AngelList has thus become a link between startup founders and business angels ready to invest their money. Investors present on the platform have access to detailed descriptions of innovative ideas, so they can more efficiently begin the entire process of analyzing a new business. An additional convenience is the special payment system offered by AngelList, which assures a high level of security of transactions.
The development of AngelList has streamlined the entire process of acquiring the right investor. The well-organized platform and connected system reduced the need to hold multiple business meetings to get to know potential collaborators better.
By gathering all the most important information about investors and startups in one place, the AngelList website has displaced the need to involve more intermediaries, which previously generated additional costs. As a result, the process of acquiring external financing has become more standardized, increasing the speed of investment.
One of the most popular forms of obtaining external funding is cooperation with the right business angels. However, finding them might be problematic for budding entrepreneurs. The AngelList portal is a tool that helps bring these two parties together efficiently so that they can achieve satisfactory benefits in the shortest possible time.
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