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.