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How to Get the Most Out of Your AngelList Account

How to Get the Most Out of Your AngelList Account
By Adam Sharp
Date January 7, 2020

I do most of my startup investing on AngelList these days.

And if you haven’t explored AngelList yet, I suggest you apply as an investor here. It’s really an incredible platform, and most people have no idea it even exists. If you’re an accredited investor and you’re not taking advantage of these deals, you’re missing out.

I’ve been investing on AngelList since 2014, and it’s only gotten better over time. So here are four tips to get the most out of the platform.

1. Always keep some cash in your AngelList account.

One of the most convenient things about AngelList is how easy it has made it to move money on and off the platform. It’s as simple as an online checking account, if not easier.

I recommend always keeping at least $5,000 to $10,000 in your AngelList account. An ACH (debit) transfer can take almost a week to settle. But occasionally, a deal will come along that can’t wait for a bank transfer. So it’s definitely worth having some cash around. Otherwise, you’ll miss out on some good opportunities.

2. Don’t join too many syndicates.

Once you’re accepted as an investor on AngelList, you’ll need to join some syndicates. Syndicates are investment groups led by notable angels and venture capitalists.

But you don’t want to join too many syndicates (at least at first). That’s because you’ll need to invest in a portion of the deals in every syndicate that you join.

If you pass on every deal once you join a syndicate, you’re not likely to be invited into future deals. You may even be kicked out of the syndicate. To stay in good standing, you’ll need to plunk down some cash and commit to at least some of the deals.

3. Let AngelList help you find good syndicates.

AngelList makes money on “carried interest” on deals that go through the platform. In other words, it takes 5% of the profits of all the winning deals.

So its mission is to help investors find great deals. And it has built some impressive technology to help investors find good syndicates. Its syndicate recommendation engine has gotten better and better over the years. Lately I’ve been pleasantly surprised at the quality and volume of deals whenever I join a syndicate AngelList suggests.

To allow AngelList to guide you, simply go to the main syndicates page and it will suggest groups for you to join (once you’re accepted).

4. Consider AngelList Funds.

If you have at least $125,000 to invest, I strongly recommend taking a look at AngelList Funds.

AngelList Funds give you exposure to more than 200 individual startups. The fund investments are made on the AngelList platform and selected by amazing investors, like AngelList co-founder Naval Ravikant.

In essence, you get access to the best startups raising on AngelList during the time your fund is active. It’s an amazing and unique opportunity. If you want easy diversification and a surefire way to hit some big winners, this is it. This is the way Ravikant suggests most people should invest. And he’s made more than 200 investments himself, so he’s eating his own dog food.

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