Angellist Stack Explained: A Comprehensive Guide for Startups

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Posted Nov 9, 2024

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The Angellist Stack is a curated list of top-performing startups, showcasing the most promising companies in various industries. This list is a valuable resource for startups looking to learn from and partner with successful businesses.

Each startup on the Angellist Stack has been handpicked by the Angellist team based on their growth potential, innovative approach, and traction in the market. In fact, these startups have collectively raised over $1 billion in funding, demonstrating their potential for success.

The Angellist Stack is not just a list of companies, but a community of like-minded entrepreneurs and investors who share knowledge, resources, and expertise to drive growth and innovation. By joining the Angellist Stack, startups can tap into this network and gain access to valuable insights and opportunities.

See what others are reading: Stack Beds

What is AngelList Stack?

AngelList Stack is a set of tools designed specifically for founders. It's part of AngelList's evolution from a marketplace to a funding platform.

Credit: youtube.com, Why is AngelList So Powerful? 💪 #shorts

AngelList Stack includes various tools to help founders manage their companies and raise funds. These tools are part of AngelList's strategy to provide a more comprehensive platform for founders and investors.

One of the tools included in AngelList Stack is Rolling Funds, which allows founders to raise funds from a group of investors in a rolling manner. This means that investors can contribute to the fund at different times, rather than all at once.

Another tool included in AngelList Stack is Syndicates, which enables groups of investors to pool their resources and invest in startups together. This can be a cost-effective way for investors to participate in startup funding.

AngelList Stack also includes Traditional Fund Administration, which provides a more traditional approach to fund management. This can be beneficial for founders who prefer a more structured approach to fundraising.

Finally, AngelList Stack includes Roll-up Vehicles, which are cost-effective Special Purpose Vehicles (SPVs) for founders. These vehicles can help founders raise funds and manage their investments more efficiently.

Here are the tools included in AngelList Stack:

  • Rolling Funds
  • Syndicates
  • Traditional Fund Administration
  • Roll-up Vehicles

Benefits and Possibilities

Credit: youtube.com, 🔥 AngelList Review: A Gateway to Startup Success with Some Challenges

AngelList Stack is a powerful tool that simplifies the process of starting and running a company. With its all-in-one toolbox, founders can manage various aspects of their business, including incorporation, fundraising, and hiring.

AngelList offers a database of over 100,000 accredited investors who can invest in your startup, making it easier to find the right funding.

The platform also provides a community forum where startups can ask questions and get advice from other members. This is particularly beneficial for those who are new to the startup world.

One of the key benefits of AngelList Stack is its ability to streamline the fundraising process. Startups can create fundraising profiles with their pitch deck, financials, and team information, making it easier for investors to evaluate their potential.

Here are some of the key benefits and possibilities of using AngelList Stack:

* Incorporate a C-Corp in Delaware in a few hoursOpen a company bank account with Blueridge BankSet up and manage your cap table, including managing SAFEs and other convertible instrumentsManage the fundraising process, including sending SAFEs and monitoring the wiresTake care of the relationship with investors, including sending investor updates and setting up the data roomManage the scouting and hiring process, even facilitating and supporting startups that intend to be fully remoteSet up and manage all corporate documents, such as 409A

By using AngelList Stack, founders can save time and effort by having all the necessary tools and resources in one place. This allows them to focus on what matters most – building their business and growing their team.

AngelList Stack also offers a user-friendly interface that makes it easy for job seekers to navigate and apply for jobs. The platform allows job seekers to create a profile that showcases their skills and experience, making it easier for them to stand out to potential employers.

Consider reading: Windfury Totem Stack

How It Works

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AngelList Stack is a suite of workflow products designed to make starting and running a company easier. It was launched by AngelList to provide a simpler experience for founders.

The end-to-end incorporation service helps founders figure out the paperwork of actually starting a company. This includes determining the state to incorporate in and what kind of business classification to pursue.

AngelList Stack will also help founders track and file 83(b) filings, a document that can cost millions in back taxes if done wrong. This is a niche but important task that lawyers often don't cover.

By providing a simpler UX, AngelList aims to do more than just help with incorporation. They want to usher founders into their next tool: banking services. This includes deposit accounts with interest and debit cards.

Founders can use the banking tool to automatically accept wire transfers from investors. These funds can then be added to the cap table tool, which includes issuing digital shares and employee option grants.

The cap table tool is designed to make it easy to manage ownership and equity. Founders can even raise their first SAFE round entirely on Stack by sending a link to investors to digitally sign the SAFE.

Tools and Resources

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AngelList Stack is a game-changer for founders, offering a one-stop-shop for all their startup needs.

With AngelList Stack, you can incorporate a C-Corp in Delaware in a few hours, online. This is a huge time-saver, as it eliminates the need to navigate complex paperwork and regulations.

AngelList Stack also allows you to open a company bank account with Blueridge Bank, making it easy to manage your finances.

The platform's cap table tool is a must-have for any startup, as it enables you to set up and manage your cap table, including SAFEs and other convertible instruments.

Here are some of the key tools and resources available on AngelList Stack:

  • Incorporate a C-Corp in Delaware
  • Open a company bank account with Blueridge Bank
  • Set up and manage your cap table
  • Manage the fundraising process
  • Take care of the relationship with investors
  • Manage the scouting and hiring process
  • Set up and manage all corporate documents

AngelList Stack also offers a suite of fundraising tools, including fundraising templates and investor CRM tools, to help you streamline your fundraising process.

The platform's community feature allows you to connect with other entrepreneurs and industry experts, providing a valuable resource for advice and support.

With AngelList Stack, you can access a database of over 100,000 accredited investors, making it easier to find the right funding for your startup.

History and Evolution

Credit: youtube.com, 💸 The best investors you've never heard of and AngelList made it happen #avlokkohli #angellist

AngelList started off as a fundraising platform, a marketplace for startup equity, and by 2011-2016, it was funding over $10m a month in startup deals.

However, the quality of startups on the platform began to dwindle over time, and the platform started to focus on jobs instead. Fundraising in public became a negative signal, as those who had to do it were often those who had to as a last resort.

AngelList launched Syndicates, a tool for leads to organize a fundraise privately on the platform, marking a significant shift in the platform's focus.

A different take: Angellist Startup

What Is a Syndicate?

A syndicate is an investor group that invests in SVP deals. You'll have access to deal-by-deal deals when you back a syndicate. No commitments can be made in a transaction with a syndicate.

AngelList has evolved to focus on closed silos, each with their own LPs, deal-flow, and community. This shift has led to the development of new tools and features.

Here are some of the tools and features that AngelList offers:

  • Rolling Funds
  • Syndicates
  • Traditional Fund Administration
  • AngelList Stack (for Founders)
  • Roll-up Vehicles (cost-effective SPVs, for Founders)

AngelList's journey can be summarized as a shift from a marketplace to a funding platform, with a focus on providing tools for both investors and founders.

Angel List (2011–2016)

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Angel List started off trying to become a fundraising platform, a marketplace for startup equity, but by 2016, startup quality had dwindled over time.

Fundraising in public became a negative signal, as those who had to do it were often those who had to as a last resort. AL started to focus on jobs instead.

Syndicates, a tool for leads to organize a fundraise privately on the platform, was launched, changing what AngelList fundamentally was.

This tool allowed embedded startup experts to connect investors and startups in private, creating a strong monetary incentive via carry for syndicate leads to build their business on top of AL.

As syndicate leads pushed to build their own businesses, they grew AngelList as a platform, much like a successful creator tool.

Broaden your view: Angellist Syndicate

Platform and Network

AngelList's pivot from connecting funders to founders to building workflow software and capital allocation tools is a significant shift.

This pivot was inspired by the early traction of rolling funds, an investment vehicle that raises money through a quarterly subscription from interested investors.

Credit: youtube.com, 🔥 AngelList Crowdfunding Review: Empowering Startups with Investor Access, But with Some Hurdles

AngelList is now unbundling venture and rebundling founder services, with roll-up vehicles allowing founders to raise capital from up to 250 accredited investors with a single line on the cap table.

The company's founder products are focused on workflow software, while its flagship products are focused on workflow software and capital allocation.

Stonks, another company, is following a similar evolution from hosting its own demo days to hosting partner events and building tools for them.

Their focus is shifting from their own success to partner success, and they're democratizing wealth creation by opening up access to startup investing.

AngelList's rebranding to AngelList Venture and rolling funds, and separating Talent and Product Hunt into independent entities, illustrates a broader push to make AngelList a capital and creator network.

On a similar theme: Angellist Founder

Frequently Asked Questions

Do people still use AngelList?

Yes, AngelList remains a popular platform with a growing community of active investors and fund managers, experiencing significant year-over-year growth. With 45,000 active investors and 2,255 fund managers on the platform, it's clear that AngelList continues to be a hub for startup investing.

Colleen Boyer

Lead Assigning Editor

Colleen Boyer is a seasoned Assigning Editor with a keen eye for compelling storytelling. With a background in journalism and a passion for complex ideas, she has built a reputation for overseeing high-quality content across a range of subjects. Her expertise spans the realm of finance, with a particular focus on Investment Theory.