We founded AngelList to bring more capital to world-changing startups. In 2013, we launched Syndicates, allowing investors to raise capital for a single startup. In 2017, we launched Funds, bringing the traditional venture fund online. Today, we’re introducing Rolling Venture Funds to further our mission.
As the fund administrator for hundreds of venture funds, we have unique insights to fund management challenges. The biggest friction for fund managers is the process of big-bang fundraising. Here’s why:
- Fund managers need to raise their entire fund's capital in a short period of time. This type of big-bang fundraising is stressful. Some fund managers take longer than expected to complete the raise, causing them to lose out on great investments.
- Fund managers can’t raise additional capital during their most marketable moments, like portfolio markups. This causes them to miss out on closing new LPs until their next fundraise, which can be 2-4 years later.
We developed Rolling Funds™ – vetted by the Fund Group at Wilson Sonsini Goodrich & Rosati – to solve these problems.
Similar to how SAFEs brought high-resolution fundraising to startups, Rolling Venture Funds brings high-resolution fundraising to venture funds. With a Rolling Venture Fund, fund managers can now accept new capital in the form of auto-renewing quarterly commitments.
This recurring nature of capital commitment allows fund managers to:
- Raise a fraction of a traditional fund and start investing in startups right away
- Leverage portfolio markups to accept new capital, anytime
- Continuously increase the fund size so they never need to raise another fund again
Rolling Funds™ is the evolution of AngelList's product suite that works for experienced and emerging fund managers alike. With a Rolling Venture Fund, emerging managers require less capital to start investing, while experienced managers can continuously accept new capital commitments, giving them an increasing stream of capital to invest in great startups. In either case, with a Rolling Fund™, a fund manager will never need to raise another fund again.
"The huge benefit for a fund manager is that they can raise money incrementally, one investor at a time, rather than having to do a one-time, big-bang fundraise and then lock the fund for four years" explains Naval Ravikant, AngelList's founder and chairman.
If you're interested in leading a Rolling Fund™, you can fill out this form.