8 Ways To Bond With Your AngelList Syndicate
If you’re a startup founder, chances are you will need to raise some capital. Fundraising is a daunting task, especially for early stage startups like us. But on AngelList, you can not only raise funds from a large and diverse group of investors, you can also build a relationship to get the best out of them. Apart from the funding, the best resources you can get from your Angel investors are their advice and network. That is why it is your duty to stay connected directly with your syndicate investors.
Thanks to the guidance and influence of Jason Calacanis, my company Requested successfully raised a round through AngelList. For n00bs like us, AngelList can be a bit confusing at times; this guide will help you navigate and champion it.
I’m going to assume you have the your fundamentals done: your company has a great profile on AngelList; you and your Co-Founders/employees have profiles linked to the company page; and you have an awesome demo video embedded into your profile. With that complete and the funds in the bank, I’m happy to share the 8 ways to go to the next level when bonding with your AngelList syndicate.
#8 — Write an individual personal thank you to each syndicate member inside AngelList immediately upon closing.
I get it — your company just got funded, you’re living your dream and you’re crazy busy. Writing 48 people seems like a time consuming black hole. But trust me, this is the best first move. Within 24 hours of Jason’s syndicate for Requested closing, I wrote a personal note of gratitude to each individual investor. Not only is it good etiquette, but it opens up the possibility of doing more with your investors beyond just money. And while it may seem daunting, it actually only takes about an hour. Here’s an example of one I did. It’s simple. Look at Steve’s response. He literally gave me an invitation to ask for specific help. For an entrepreneur, this is potentially invaluable! Funny thing is, I took Steve up on his offer and now he and I have taken our relationship outside of AngelList and are working deeper.
#7 — Learn what your investors do or have done, and be ready to work together.
If you hover over “Invest” then click “View Details” then click “Manage.” This is where you interact with your syndicate investors and can see who is interested and who actually closed. Hover over each investor’s photo and make a database with a short bio on each. If there’s a way their expertise can dovetail with your company, ask them. You may also be able to reference something in your personal note (shared connection, worked at the same company, etc).
#6 — Follow all your closed investors.
This takes about 10 minutes. For closed investors, hover over their profile image in the “Manage” area and click “Follow.” Bonus if you find them on Twitter and Facebook and follow them there too.
#5 — Invite investors to contact you directly.
Many of these investors do dozens of deals. A simple note saying you’re available to be contacted directly with your contact information goes a long way. Share the direct channels to communicate with you. You can do this when you reach out for the first time (see step #8) and every time you send a message.
#4 — Check and answer all Q & A section comments.
At the bottom of your company page, there’s a section called Q & A. Answer all questions posted by investors. It’s sneaky, you may not get a push notification, so be paying attention.
#3 — Take phone calls.
Very few of your investors will want to talk on the phone, but for the couple that do, give them ~30 minutes, especially in your early stages. If they text, even better. Socialize your mobile number. Phone calls may feel time consuming, but they can yield valuable information: I took one call from a syndicate member and found out they are on a first name basis with Marissa Mayer. Boom. That could come in handy! I had another call with a syndicate investor who contributed information architecture to a future Requested feature. Super high value interactions.
#2 — Request each investor’s personal email.
Add each syndicate member to your personal email updates. They appreciate it and it opens the door to deeper 1:1 conversations that may not happen inside AngelList.
And the most important step to bonding with your AngelList syndicate is…
#1 — Give investor updates on a regular cadence.
Sounds simple, right? Well, I thought so too. As a matter of fact, I’m pretty religious about this. But as dedicated as I am, I can get off track by a week or two. But I always get the update out with thoroughness and honesty. We as founders are busy running our companies, trying to be great. However, we have to remember that it was the investors (real people) who gave their cash (repeat: CASH) so we could quit our jobs and focus on building a great company. I send updates monthly. When I sent my second Requested investor update, I had one prolific syndicate investor reply with, “…the fact that you’re doing monthly updates already puts you in the top 10% of all my investments!” Verbatim. This came from a tech investor of 30 years! Simply communicating your progress and plans, causes and effects, will put you in the top of the heap from your competitors.
We are fulfilling our dreams and adding meaning to our lives by doing a startup. We’re working hard solving hard problems. It’s great! And ultimately, this is business and communicating is your responsibility. But beyond business, it’s just good manners. Ask yourself — when you are nearing the fatal pinch and need that one last round of capital or an introduction to figure it all out so you can become the unicorn you were meant to be, how will your investors feel about you? Treat the relationship with care.
Wishing you the best,
Sonny Mayugba — Founder
Requested. Book a table, pay with your phone.
Launch Incubator: Batch 1
Tweet me here @sonnymayugba
Connect with me at AngelList here.
(Special thanks to my man Jason Demant of Bento for contributing to this article.)
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