AngelList has announced AngelList Raise, even though it has been in use for about 12 months now.
AngelLlist Raise is a largely automated online capital formation platform that enables early-stage firms to raise growth capital from Pre-Seed to ~ a Series C Round. AngelList notes that in the past 12 months, about $500 million has been raised using the funding platform. All offerings are listed under Reg D 506c and thus only available to Accredited Investors. In many respects, this is the next step in the evolution of securities crowdfunding, reducing bottlenecks and interaction to allow the tech to do the heavy lifting.
AngelList Raise promotes a platform that can power a securities offering “From sign up to raising in 3 minutes.”
If your company is not yet incorporated – no problem, the incorporation process is just one of the services to get you raising your money.
AngelList Raise aims to “remove the friction from fundraising” as it automates the capital raising process, including verifying accredited status, legal documents, banking, and more. Issuers can raise capital via SAFEs or equity. Firms can track all engagement activity and measure in real-time investor activity.
Once a funding round is completed, firms can quickly close and transfer the capital. Shareholders are managed via cap table management service.
Online banking services are provided by AngelList Banking, powered by FDIC-insured Blue Ridge Bank, N.A.
Announcing: AngelList Raise
Startups get one platform to:
– Close investors directly onto the cap table
– Execute equity rounds, SAFEs, and token warrants
– Collect funds via ACH or wire
– Create RUVs
– Deposit funds into a high-yield bank accounthttps://t.co/qFbGgkttYh
— AngelList (@AngelList) October 19, 2022
So is this the future of investment crowdfunding? It certainly could be, as automation can reduce some of the challenges of pursuing a funding round. AngelList was an early advocate of the JOBS Act of 2012, the law that legalized online capital formation. AngelList has been a huge beneficiary of Reg D 506c that was created under the JOBS Act, allowing general solicitation (public promotion) of private placements.
AngelList has long been one of the most active online capital-raising platforms in the US, with its unique VC-hybrid syndicate model having supported over $13 billion in assets. Raise is taking their funding service in another direction. Republic, a spin-off of AngelList, has emerged as a leader in the Reg CF and Reg A+ sector but also provides Reg D securities offerings as part of its Deal Room service. Will Republic soon offer an automated service?