Pre-IPO Profits

On AngelList, Keep It Confidential

On AngelList, Keep It Confidential
By Adam Sharp
Date November 12, 2019

AngelList continues to amaze me. Just yesterday, I was able to invest in a great deal alongside literally one of the best venture capital firms on the planet.

Of course, I can’t tell you anything more about the deal. This is the nature of top-tier startup investing sites like AngelList. The deals are confidential.

At the top of most AngelList deals, there is a warning: “Strictly Confidential: If you disclose any deal information, you will be removed from AngelList.”

My advice is to take this warning very seriously. For a unique service like AngelList to work, there needs to be trust and respect. The companies that are raising money want their private information to be kept that way. If the deal information leaked, it could get into the hands of competitors or create new competitors.

In addition, the syndicate leaders don’t want other investors finding out about their deals. So don’t forward deal emails to a friend. I don’t know if AngelList tracks email forwards, but I’m guessing it does. So I wouldn’t risk it.

If you want a friend to get into a specific deal, you need to do it the right way. Tell them about AngelList and how it works, and have them apply to the syndicate. You can’t tell them about the specifics of the deal. They need to see it for themselves (if they’re accepted into the syndicate).

If you’d like to, you can email the syndicate leader and mention that your friend is applying and that you think they’d like the deal. Many syndicate leaders will appreciate you referring more members to their investment group.

Another thing you should avoid is sharing deal information on social media sites. Until the deal is closed (you’ll get an email confirmation once it is), you can’t share anything about it at all, not even the company’s name or the fact that you invested.

Access to AngelList is a unique privilege for accredited investors. Don’t risk losing access over something silly like sharing private information.

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