Up-and-coming entrepreneurs know that developing a startup into a fully-fledged and functioning business takes three key components: time, ingenuity and money. Often, startups will have an abundance of the first two but lack the capital required to make a splash.
That’s where angel investors come in. Angel investors are financially successful people who provide capital to startups in exchange for equity. Unlike venture capitalists, they tend to take a hands-off approach and leave creative control with the startup team.
AngelList acts as a matchmaker, connecting would-be investors with startups. Here are four benefits you’ll get from AngelList.
1) Protected “Matchmaking”
Without a dedicated service, you could spend months tracking down potential investors for your startup. AngelList takes the guesswork out of the process by matching you with like-minded individuals looking to invest. How? Investor profiles, like that of Australian-born entrepreneur Kris Duggan, include an about section, a list of current projects and even a reference section to help you vet your potential business partners.
With a rigorous application process for both startups and investors, the site protects you from possible catfish or unscrupulous entities.
If you’re unsure whether to list your startup on AngelList, you need look no further than the stats. In 2020 alone, AngelList funded 2,698 startups, including 77 unicorns (privately held startups worth over $1 billion).
2) Incubators
While some startups want to partner with hands-off investors, AngelList offers an excellent service for budding companies that need additional support: Incubators. Incubators offer new and emerging startups the guidance and mentorship required to get their project out of the launch phase.
With research showing that startup failure rates can be as high as 90%, incubators can stop your dream becoming another negative statistic. Further studies have shown that mentored startups report 3.5 times the growth rate and raise 7 times the amount of money as their unmentored competitors.
3) Talent Finding
If you’re in the midst of growing your startup, recruiting the best staff will be a high priority. Before you head to Linkedin, know that AngelList is now a strong competitor as a talent acquisition platform. Unlike its rival, it’s not yet overrun by recruiters, allowing smaller companies a more even playing field.
Once you’ve posted your free job listing on AngelList, the platform goes into matchmaking mode to source possible hires. When you have compiled a list of candidates, AngelList will then let you filter them by location, work history and skills to find the best hire. Like on Tinder, both parties need to express interest in order to start a conversation, which discourages time wasters and weeds out unsuitable hires.
Companies that currently use AngelList to source talent include some big players, including Tinder, Hinge and Yelp.
4) SEO Perks
Listing your startup on AngelList comes with a peripheral perk: enhancing your online credibility. When you list your business on an online directory, such as AngelList, you can positively impact the way Google ranks your name or your company’s name.
To best utilize AngelList to improve your name ranking, ensure that you have filled in every section of your profile. Use keywords that relate to your business niche and reference local suburbs in your bio to help potential customers in your area find you. Don’t forget to regularly update your profile to show that you’re active in the community.
Additionally, add links to your other social media profiles. Not only will this help customers and investors engage with you, but it also creates high-quality external links that can improve your overall page ranking.
Piloting a startup can be as stressful as it is rewarding. By using AngelList, you can take away some of the major pain points and focus on really making your new venture thrive.
