Ready Made Crowd Funded Portfolios

Angel List, a crowdfunding site for accredited investors, is now permitting investors to invest in a number of startups for one contribution.

Certain Silicon Valley incubators (“accelerators”) are raising money on the site for a “class” of companies that they are supporting. The funds are being used to increase the accelerator’s seed investment in their own startups, resulting in a ready-made portfolio for investors who don’t want to diligence a number of companies. It requires the incubator to negotiate the same deal with all of its clients, typically convertible debt.

Angel List is taking a 10% carried interest.

http://blogs.wsj.com/venturecapital/2013/10/22/techstars-angelpad-rock-health-raise-funding-by-the-batch-via-angellist-classes/?mod=WSJBlog

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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