Over the past year, we’ve all read about the promise of AngelList’s Syndicate program. I’ve been shouting from the mountain tops that I think this is a revolution (https://www.linkedin.com/today/post/article/20130928204536-24171-the-end-of-venture-capital-sort-of) because an angel investor like myself could “jump the fence” and fully fund a founder.
Typically an angel gives $10k to $50k to a founder, which serves to kick off their fundraising process and maybe build out or improve their MVP (minimum viable product).
Founders take a high-profile angel’s name and sell it to VCs and other investors as their “social proof” that they are a serious concern. After this first Silicon Valley blessing, things tend to go well for startups. Every week, a couple of startups ping me to tell me, “We got [insert Kevin Rose/Cyan Banister/Gary Vaynerchuk/Joanne Wilson/Tim Ferriss] to commit! Can we share our plans with you?”