AngelList SPV’s and Jobs

Yesterday, I wrote about the $400M fund that AngelList raised from CSC Venture Capital to invest in syndicate-led AngelList startups. AngelList actually made two more important announcements yesterday on its blog. Although they were lost in the frenzy of the very large fund announcement, they’re worth repeating here.

The first is a special purpose vehicle (SPV) product for angels and VC’s to quickly raise additional capital. This could be for a special large opportunity where the angel or VC doesn’t have enough capital to make the full investment on their own and needs to act fast, or in cases where they have equity ownership from an earlier round but don’t have the funds to retain their pro-rata in a later stage round. In both cases they can make their unfilled investment amount available to their LP’s and AngelList investors in exchange for carry.

AngelList’s SPV product brings two key advantages. First, the cost of administering the SPV is reduced from the traditional tens of thousands of dollars to ten thousand dollars by using AngelList’s existing SPV infrastructure. Second, the product gives SPV creators access to a whole new group of AngelList investors that they can raise money from, while also introducing the SPV creator’s LP’s to AngelList. Such SPV’s were already being launched on AngelList but formalizing the program is likely to accelerate adoption of the product.

The second is an AngelList Jobs App for iOS. While AngelList’s startup-investor matching platform gets more attention than its startup-employee matching platform, the latter is an equally important tool for startups. Money is of little use if you don’t have a great team and AngelList helps you build this team.

The Jobs App works just like Tinder. If you’re a company, you specify what employee attributes you’re looking for. The search results are presented one by one and you swipe right to skip the candidate, and swipe left to be introduced. If you’re a candidate, you specific what type of companies you’re looking to work for. When the search results are displayed, you swipe right to skip the company and left to apply to the company.

I think that the Tinder-like interface is a touch too superficial to evaluate the important attributes necessary to properly select someone to work for you or a place to work, but it’s a promising starting point. The current casual discovery of candidates and companies will likely be augmented with additional features as user feedback comes in.