Nivi · January 13th, 2011
When you build a new feature, you try to think about its benefits. But you never know what the real benefits are, until you talk to gratified users.
But getting out of the building and talking to users is hard. Naval and Brendan talk to a lot of AngelList users but I’ve gotten lazy.
This anonymous answer motivated the exercise because it completely ignores the features of AngelList and focuses exclusively on some surprising benefits (emphasis added):
1) The Application Process
AngelList has a very simple and straightforward application process. But they force you to focus on the key metrics, social proof and other factors that lead to successful fundraising. Just the process of applying, helps you clarify what is necessary to put your company in the best position to fundraise, whether it is through AngelList or through other methods. (It is kinda like a test prep course; all standardized test can be hacked with some preparation and knowledge about how it works. The AngelList process + venture hacks is your Kaplan prep course for raising a round.)
2) The Depth of the Roster
Most startups know about the “famous” investors – those who have great public reputations or are name brands. But there are an amazing number of high quality angels, who fly below the radar, that AngelList gives you exposure to. Oftentimes, it can be these angels who help close out your round.
3) The Time Factor
AngelList creates a sense of urgency around the investment process. Nearly every investor that reached out to us, resulted in a call or meeting within 10 days. When compared to non-AngelList intros we received, this is a huge difference in time. Also, decision (both yes and no’s) were given fairly quickly.
4) The Validation
Compared to other conversation, the investors we met through AngelList seemed to be leaning towards investing from the initial conversation. A large part of this is the validation a startup gets by being on AngelList. What I mean is that investors were looking for reasons to say yes, as opposed to reasons to say no. The answer still might be no in the end, but it was always a more productive and engaged conversation.
Thank you, Anonymous.