AngelList, a prominent organization in the startup ecosystem, is making a significant move into the private equity space. To kickstart this effort, AngelList has acquired Nova, a Y Combinator-backed fintech startup that specializes in investor management software for institutional private funds. This acquisition marks AngelList’s expansion into a new market and further solidifies its position as a leader in the startup ecosystem.
Founded in 2010, AngelList began as a mailing list for high-quality angel investors. Over time, it transformed into one of the most powerful fundraising channels for early-stage startups. Today, AngelList is known for creating products and services that accelerate innovation for venture firms, investors, startups, and fund managers.
AngelList’s evolution has seen it move from serving micro-funds to pioneering concepts like special purpose vehicles (SPVs) and rolling funds. SPVs are investment vehicles that raise money through a quarterly subscription from interested investors. Rolling funds, on the other hand, provide a new way for venture capitalists to raise capital on a recurring basis. Additionally, AngelList offers Stack, a suite of products designed to compete with Carta in providing services to help founders start, operate, and maintain ownership over their companies.
CEO Avlok Kohli believes that AngelList’s expansion into private equity is a logical and natural progression for the organization. He sees AngelList as building the infrastructure that powers the startup economy, including all the necessary infrastructure to run venture funds. As startups mature, their capital providers expand beyond venture funds into private equity and eventually the public markets. By expanding into private equity, AngelList can continue to serve startups throughout their entire journey.
Nova, founded by Pradyuman Vig in 2018, has developed investor management software for institutional private funds. It aims to replace traditional subscription paperwork with flexible digital workflows that save time and reduce friction. With over 10,000 investors and billions of dollars invested through the system in the last year, Nova has established itself as a trusted player in the market.
The acquisition of Nova by AngelList will allow the startup to continue operating as a business unit within AngelList. Nova’s products, such as its digital subscriptions offering, data room, and investor portal, will be integrated into AngelList’s suite of products. The acquisition of Nova significantly expands AngelList’s presence in the private equity market and accelerates its growth in the larger private markets industry.
AngelList has experienced significant growth in recent years. In 2022, assets supported for investors on AngelList increased by 50% to $15 billion. The number of startups funded on AngelList also increased by 21% to 8,300. This growth is a testament to the organization’s ability to provide valuable services to investors and startups alike.
While CEO Avlok Kohli did not disclose specific revenue figures, he mentioned that AngelList’s business is diversified and operates at a significant scale. The company generates revenue through a variety of sources, including subscription and software-as-a-service (SaaS) fees, as well as carried interest.
The acquisition of Nova is just one step in AngelList’s journey to consolidate the market and become the go-to platform for venture and private equity investments. The company has recently launched several new products, including AngelList Treasury, Projector, and Relay, which further enhance its offerings to investors and fund managers.
Although there are no immediate plans for additional acquisitions, AngelList remains open to opportunities that align with its vision and values. With a team of 130 employees and a strong focus on serving institutional funds, AngelList is well-positioned to continue its growth and make a lasting impact on the startup and private equity industries.
FAQs
Q: What is AngelList? A: AngelList is an organization that creates products and services for venture firms, investors, startups, and fund managers to accelerate innovation in the startup ecosystem.
Q: What is Nova? A: Nova is a fintech startup that specializes in investor management software for institutional private funds. It helps streamline subscription processes and provides digital workflows for investors.
Q: How does AngelList make money? A: AngelList generates revenue through a variety of sources, including subscription and SaaS fees, as well as carried interest.
Q: What are some of AngelList’s recent product releases? A: AngelList has recently launched AngelList Treasury, Projector, and Relay, which enhance its offerings to investors and fund managers.
Q: What is the future of AngelList? A: AngelList aims to consolidate the market and become the leading platform for venture and private equity investments. The company will continue to innovate and expand its offerings to serve the needs of investors and startups.
Q: How has AngelList grown in recent years? A: Assets supported for investors on AngelList increased by 50% to $15 billion in 2022. The number of startups funded on AngelList also increased by 21% to 8,300.
Q: What is the significance of the acquisition of Nova? A: The acquisition of Nova allows AngelList to expand its presence in the private equity market and accelerates its growth in the larger private markets industry. It brings valuable investor management software and expertise to AngelList’s suite of products.
Q: Is AngelList planning any more acquisitions? A: While there are no immediate plans for additional acquisitions, AngelList remains open to opportunities that align with its vision and values.
Q: How many employees does AngelList have? A: AngelList currently has 130 employees, not including the employees of Bell Tower, a fully owned fund and tax administrator. The number of employees joining from Nova was not disclosed.
Q: What is the history of Nova? A: Nova was founded in 2018 and went through Y Combinator in the summer of that year. It raised funding and launched its digital subscriptions product in 2021.
Q: What does the future hold for AngelList? A: AngelList’s future looks promising as it continues to grow and expand its offerings. With a strong focus on serving institutional funds and a track record of success, AngelList is well-positioned to make a lasting impact in the startup and private equity industries.
First reported by TechCrunch.
The post AngelList’s Bold Move Shakes Up Private Equity appeared first on KillerStartups.
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