Syndicate Investing

AngelList launched in 2010 as a platform for Angels to discover startups. Instead of Angels writing checks individually, they could co-invest. A lead investor did diligence. Other Angels followed. AngelList took 20% carry-on profits. The platform created network effects. More startups launched because more investors were there. More investors came because more startups were there. By 2020, AngelList had over 100,000 Angels. The platform economics was stunning. AngelList invested $50 million in a company valued at $1 billion. The company grew to $10 billion in five years. AngelList's ownership was worth $450 million. AngelList's carry was $90 million. The fee was proportional to returns.