Introducing AngelList Access Fund
One of the biggest problems angel investors face is gaining access to deals. It’s hard for an individual investor or family office to get into early rounds of promising startups because allocations are typically reserved for the top echelon of venture capital firms.
With the AngelList Access Fund, angel investors now have an "in" where they otherwise wouldn't have one. With one check, AngelList Access Fund participants gain exposure to dozens of high-quality deals with top-tier co-investors including Andreessen Horowitz, Sequoia, and Kleiner Perkins.
AngelList Venture is where top GPs go to run their funds and syndicates. Our network of GPs—proven investors and operators—source and invest in competitive early-stage startups and have the option to amplify their investing with capital from the AngelList Access Fund. Seasoned investor-operators on our investment committee use their expertise and judgment to approve high-quality deals. The committee is comprised of respected and talented early-stage investors, including AngelList founder and Chairman Naval Ravikant, whose early bets included investments in Uber and Twitter. As a result of our top GPs, a full 36% of top-tier U.S. seed stage deals in 2019 are included in the AngelList portfolio.
You can think of the AngelList Access Fund as broadly indexing early-stage venture capital deals. This makes it one of the easiest ways for an investor to diversify their venture portfolio while producing competitive returns.
Funds managed by AngelList Venture consistently outperform Cambridge Associates' top quartile benchmark for TVPI (note: later funds are still early in their maturity).
We at AngelList Venture often see angels give up on investing after they fail to generate returns on their first few deals. These angels can’t access the best deals and might lack the experience or judgment to pick winners on their own. Research from our data science team bares this out. The team analyzed more than 10,000 AngelList investor portfolios and found that angels who invest systematically and broadly substantially outperform those who participate in only a handful of deals.
Analyzing the performance of AngelList Access Funds, the data science team found that investors who participated in an AngelList Access Fund substantially outperformed those who didn’t. For example, in 2015, Access Fund investors’ average IRR was 19% higher than non-participating investors’ IRR on the platform.
AngelList Access Fund investors also benefit from opportunities to level-up their investment strategies and expertise through participation in an exclusive educational series hosted by AngelList Venture. During a quarterly investor meeting, investors in the fund will have the opportunity to connect with the Investment Committee directly about recent venture trends, our data science team’s latest findings, as well as the mechanics underlying the investment committees’ decisions.
To kick things off, the AngelList Venture team will be hosting an introductory webinar with more information on the AngelList Access Fund on May 28th at 10 am PST/1pm EST. They will be discussing current venture market trends, diversification strategy in early-stage investing, and why top GPs rely on AngelList to raise capital and fund startups. If you’re interested in learning more, register here.