Angel List · Crowdfunding

AngelList vs. FundersClub - which equity crowdfunding platform is better?

Anonymous

March 16th, 2015

For those that have had experience on the equity crowdfunding side of things, would love your experiences, specifically iwth AngelList and Funder'sClub.

As a founder, you’re always in fundraising mode (whether active or passive). In this course, we’ll teach you how to successfully raise follow-on capital, establish a valuation for your company, build an investor pipeline for your next round, and more.

Robb Smith CEO at Chrysallis, the World's First Population Transformation Platform

March 16th, 2015

I've found AngelList to be sort of a waste of time. I've raised $4 million in angel financing in the past 4 years for various deals and none of it through AL even though I've given it a shot. AL requires just as much networking as anything else does, and LinkedIn is faster and more direct anyway. And most angels don't need a document collaboration platform, so the value of an AL is sort of dubious for me. I suppose it's fine for the superconnectors who are trying to build their own brand of micro-VC with carry etc., but that's not particularly value-added for entrepreneurs.

Andrew Steele Executive. Entrepreneur. Builder of Things.

March 16th, 2015

I'm not familiar with FundersClub (looking forward to comments on that), but completely agree with Robb on AngelList.  It wasn't always that way - I actually had fantastic success connecting with and pitching investors in the early days, but now the signal-to-noise ratio seems to be completely out of whack.  The only way for entrepreneurs to rise above the noise is to get some love from one of the superconnectors, and we can do that without AL (saving ourselves a ton of time in the process).  It does seem now like it's mainly a way for lead investors to syndicate their deals...

All of that said, I do think there is still value in participating as an entrepreneur.  I'm not aware of any other way to (1) identify angel investors in the first place (sure, LInkedIn can do that but it's clunky and depends on those investors to self-identify), and (2) perhaps more importantly find investors who are investing in companies like yours.  This is indispensable intelligence, and so at a very minimum AL is a very effective way to come up with your target list of investors, but perhaps not the best way to connect & engage with them.

Good luck!

Jessica Ratty Brand Communications Manager at Crowdfunder

March 16th, 2015

I'm biased as Crowdcube is the sister-site of Crowdfunder (the platform I work on) but having worked with entrepreneurs using crowdcube it's worth considering as an alternative. Best Jess