AngelList will be a $1 trillion-dollar company
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AngelList can simply be described as the future of VC where the bottleneck for capital allocation is removed and capital abundance by way of network effects finds its way into founders’ hands.
STRUCTURE
To start off let’s talk about the business structure of AngelList which presents as a company which has all the key traits I look for when investing
- Agile
- Integrative
- Anti-fragile
- Self-perpetuating
- Innovative
These traits at the highest level will never be expressed until companies can be completely decentralized and built by communities nonetheless by today’s standards, AngelList is a leader in all of the above.
LEADERSHIP
Since 2010 Naval Ravikant has worked tirelessly in democratizing startup investment by way of building out software that handles the relationship between General Partners (GP’S) and Limited Partners (LPs) and the onerous paperwork which comes along with it.
At the time this idea seemed a little crazy not only technologically but by way of legislation and so not only was Naval required to build an incredible software product but at the same time he was lobbying in Washington to pass the JOBS Act which allowed for the general solicitation ban to be lifted and thus public fundraising being legal.
The most important part of the leadership piece in my opinion is Naval as a thinker who has inspired millions of people with his wisdom, non-apologetic truth-seeking, self-awareness, and path towards ego destruction.
INNOVATION
Let us go through the list of constant innovations AngelList has pulled off and why human ingenuity is the biggest winner:
- Syndicate setup fee on AngelList costs $8,000 in comparison to a traditional venture fund set up cost of up to $1,000,000
- AngelList Access Funds: The AngelList investment and data team allow AngelList LPs to subscribe funds towards high signal and vetted deals within the network which currently results in a minimum 1.1X return on investment up to 2.1X depending on the year!
- Rolling Funds: Imagine a syndicate that has no limited pool of funds to invest but a continuous source of income from LP subscriptions which can be dispersed immediately when the opportunity presents itself by the fund GP. VC is evolving from fund to individual.
- AngelList Talent: Where millions of startups and entrepreneurs connect, hire and recruit one another
WHY A TRILLION?
What company do you know makes self-perpetuating products that continuously grow year on year without capital expenditure outlay? Really think about this for a second.
Apple grows by leveraging its brand, incredible design, and revolutionary products to the masses but over time Apple must continue to produce and is expected to do so to sustain and maintain its approximately 2 trillion dollar market cap.
Now compare this to AngelList which has 1.8 Billion in assets under management, multiple access funds, 47 unicorns in its portfolio, and is still in its infancy. In 10 years’ time, these very assets under management may translate to many hundred billion-dollar public companies. Beyond this AngelList is becoming a synonym for venture capital and investment in Canada, India, Europe, and Australia being the first time in history an organization has the data and value advantage for pre-IPO technology companies.
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The flow of capital thesis: As the world comes to realize the stock market is being held up by technology companies and the printing of money by the FED can not be a long-term solution to our inevitable market crash our investment habits will change and asymmetric returns will be the solution to recoup for the losses. The USA alone has approximately 28 trillion in 401K assets and fund managers post-crash will have their hand forced into seeking alternative high-yielding investment strategies. It is not a matter of if but when.
THE INTERVIEW
Finally, I interviewed with AngelList but was so nervous and had so much to say that my stream of consciousness was flowing like a volcano just erupted, a verbal barrage which wasn’t as eloquent as I would have liked, the excitement knowing I was potentially going to work at the next trillion-dollar company had me lose coherence and unfortunately the interviewer’s confidence.
I have always struggled with interviews as short-form conversations tend to set me off balance as I prefer to dive deeply into a topic and provide a complete perspective.
It is what it is though! whether I am working there or not, AngelList will continue to grow year on year!
I hope to come back to this write up in 10 years being proud of the call.
Time will tell.
Thanks for reading another PERSPECT8VE!
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