Many of the more detailed questions or legal questions and answers can be found on AngelList’s excellent FAQ for Syndicates.
If you are new to investing, this is a very helpful resource and will bring clarity to anything left out of this FAQ.
We base our beliefs on 4 heuristics that guide how we think about investments
🔑 Is this the right Market?
We bet on “technology risk, not market risk”. Market risk - will this be of value to a large enough audience. Technology risk - is this the right technology to solve the problem. We focus on products with low market risk.
👥 Is this the right team?
We bet on founders. We spend time understanding the founder's journey, their motivations, how the world is evolving and what people need from their lens.
📦 Is this the right product?
We believe that great products (that adapt) win. We will only invest in companies whose products we believe are best positioned to win the market.
⏱️ Is this the right time?
We always want to understand “Why now” and what events have changed to make this the right time to pursue this opportunity.
We invest in any company that solves “money” for Africans. We believe that democratizing finance and enabling economic empowerment is the highest leverage path to bring about more opportunity and economic freedom.
We target disruptive founders that leverage technology to reimagine and reinvent what financial services can be for the next Africa.
We want to be deliberate about the areas we invest in. We expect to see a ton of seed investment opportunities, but we will only invest in a few. Many of the opportunities we will see will be outside of our “zone”.
Our goal is to be the earliest and most helpful partner to Africa’s entrepreneurs. We invest when it’s just an idea/deck or prototype. We love to be early, We invest in pre-seed/seed rounds. Not Series A.
We will share investment memos on all deals we recommend, including any additional diligence as well as quarterly updates, reports and insights (Read more here). Please note that often some companies prefer their private investor updates not be shared for competitive reasons.
We do not invest in brick and mortar, traditional retail and anything that doesn’t involve solving money for Africans.
We have consciously decided to constrain our focus and only invest in areas we know well and can be meaningfully valuable (although the areas may expand and evolve with our experience.)
This lens allows us to spend the vast majority of our time on companies we are either investors in or likely to be investors in, and limits our time exploring lots of things that have a low probability of being an investment for us.
Focus also allows us to go deep, increasing our chances of finding the right entrepreneurs solving challenges in financial services.
As an LP, there are 2 levels of engagement, you get to choose what suits you best:
- Passive: You set up your investment, go to the beach and wait for your quarterly investor updates :)
- Active: You can opt to be a part of creating deal flow (become a scout), performing due diligence and supporting (coming soon) the companies we’ve invested in together.
Basically you get to choose your own adventure.
We have a very standard fee model for venture investment
Carry: 20% on returns delivered above your initial contribution. Read more here
Management Fee: We do not charge a management fee
Liquidity events (Shares or cash that results from an IPO or Sale) are passed through to LPs when they happen.
More details on AngelList’s FAQ under “How do Distributions Work?” (at the bottom of the page).
Yes. Startup investments are highly illiquid, and neither you (LP) nor we (GPs) have control over liquidity. You do not have the ability to “cash out” the money you invest with us until the startup goes through a liquidity event.
This is their choice, not ours. (There are pros to this as described in this letter.)
This amount varies by deal but our typical investments range from $5,000 - $10,000
Probably. We are only limited by the wonderful infrastructure built by AngelList, which enables us to invest in most countries on earth.
If want to get introduce us to a startup you’re supporting, contact here.