3 ms·

I think AngelList is making the market too efficient and some investors don't like that.

• gyardley 16y ago
  Hmmm. I remember, three years ago, being advised not to present to multiple angels at once (then typically done to organized 'angel groups') because the premoney valuations they offered were typically much lower than what you'd get from individual angels, one angel at a time. Presenting to multiple angels at once doesn't necessarily produce a better valuation for entrepreneurs - it just produces valuations that more closely reflect the consensus of the times. The true value of the startup's equity has little to do with it. If you have to raise right now, you should absolutely use AngelList -- just don't assume things are always going to be so easy. When the investment climate for startups goes south again, and it eventually will, AngelList will go from being the best place to pitch to the worst place to pitch.
  • spydertennis 16y ago
    I disagree. The reason you get a lower valuation from Angel Groups is because they act as a group so they have more power to put in more cash and to determine your valuation. Angel List is not an angel group by any means. They do not act as a group and using them is like talking to many individuals. It's just a more efficient way of doing so. [In the past I have presented and received offers from Angel Groups and from Angel List.] "it just produces valuations that more closely reflect the consensus of the times. The true value of the startup's equity has little to do with it." This is a strange statement. How do you determine the "true value" of a startup's equity without the consensus of the times ie. the market? :-)