A fun innovation in financial engineering I saw recently and thought was worth sharing: I am an extremely tiny angel investor, which means I periodically send small checks to startups in return for an equity investment. This has historically been very toilsome for all parties.
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And instead of the founders having to do their least favorite chore of "Hey Patrick, thanks for your commitment. We're closing soon so if you could please actually hit the wire button that would be great", ~100% of that is handled by cronjobs at AngelList.
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There are probably also some benefits on the backend, too. A startup I invested in back in 2012 exited. Yay! And I got several hundred pages of documents to review as a result of it. Absence of yay. The ideal UX here is "I trust you. There's a number. Pay me; I tell accountant"
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AngelList gets to have the operational teams and software which figure that out for the SPV, which centralizes thousands of otherwise pairwise conversations happening with lawyers and accountants, and then a piece of software spits out a) money and b) tax forms.
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The startup can do all of this with Stripe Atlas for $500 and not give
@naval carry -
There’s no carry for investors the startup brings itself. Atlas can create a shell LLC but doesn’t do all of the other legal, audit, tax, and accounting, distributions required for the next ten years.
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I built parts of this in 2012 @ angellist. Or at least precursors: close a seed round online. Generate docs, e-sigs, Delaware filing, etc. There were some illegal workarounds of this “40 people on the cap table” that not-zero lawyers did. Put that in code? Nope.
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Didnt realize you could do this on
@AngelList! Was asking about this earlier:https://twitter.com/FrankDenbow/status/1225410312016453633 …Thanks. Twitter will use this to make your timeline better. UndoUndo
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Public crowdfunding affects your brand, this would decouple brand launch from fundraising