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When raising capital from your customers, it doesn’t hurt when they happen to be thousands of general and limited partners.
After closing its $100 million Series B round led by Tiger Global last month, venture capital fundraising and technology platform AngelList Venture opened up a follow-on round to its most active GPs and LPs and raised an additional $44 million.
“Almost 10% of the active customer base actually invested in the allocation,” CEO Avlok Kohli tells me, noting that the second close was extremely oversubscribed.
AngelList—which connects angels and solo GPs with founders and offers software to handle the back-office logistics of managing a fund, investment, or funding round—initially opened up the allocation to all its general partner users who had made an investment on the Ventures platform in the last 12 months, then ranked them by amount of activity. Those GPs, in turn, invited their limited partners to participate. In all, 15 GPs joined into the round—and thousands of their LPs (AngelList wouldn’t specify exactly how many).
“We’ve basically got what we think is one of the largest customer and community rounds ever,” Kohli says.
AngelList’s platform has exploded during the pandemic as a slew of new angel investors and solo venture capitalists entered the market. Last year offered a venture funding boom, and investors flocked to back early stage companies at unprecedented rates. The seed and early-stage market is AngelList’s bread and butter, as it offers tech and connectivity that would typically be most useful for smaller investors and funding rounds (large VC firms generally have their own customized systems in place). AngelList oversaw about $10 billion of customer assets moving through its platform in 2021—up from $3 billion in 2020. Last year, some 7,000 startups raised more than $3.6 billion, including 200 unicorns.
AngelList has been putting more emphasis on its founder customers of late. Last year it introduced what it calls a “roll up vehicle,” or RUV, where angel investors can commit and send funds online under one entity—streamlining the cost, tax document, and distributions management processes of putting up to 250 investors on a single line in the cap table. More than 1,100 startups used an RUV in the last 12 months to raise capital, AngelList recently announced. Most of AngelList’s business—or about 85%—still lies with general or limited partners, Kohli estimates.
But what happens now? The public markets have experienced a bout of volatility so far in 2022, and the first quarter showed early indications of a potential slowdown in the private sector. Kohli says the company is still crunching the numbers, and it’s too early to know whether early-stage deal size could be significantly impacted. However, he says there hasn’t been a slow down in new solo VCs entering the marketplace, and the market continues to get increasingly fragmented in seed and pre-seed stages.
“TBD on broader venture activity, but AngelList is still growing quite aggressively,” he says.
One quick note… On Monday, for Fortune‘s 25th year of the “100 Best Companies to Work For” list, you can join Fortune CEO Alan Murray, Great Place to Work CEO Michael Bush, Target CEO Brian Cornell, Hilton CEO Chris Nassetta, Cisco CEO Chuck Robbins, and Accenture CEO Julie Sweet and others for a discussion on what it takes to make a company great, and how diversity, equity, inclusion and belonging are essential for a modern company seeking top talent and engaged employees. You can register here.
Until Monday,
Jessica Mathews
Twitter: @jessicakmathews
Email: jessica.mathews@fortune.com
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Jackson Fordyce curated the deals section of today’s newsletter.
VENTURE DEALS
– NexHealth, a San Francisco-based patient booking platform, raised $125 million in Series C funding led by Buckley Ventures’ Josh Buckley and LGF3 and was joined by investors including Mantis VC, Lattice, Loom, and Ramp.
– BlockApps, a New York-based blockchain provider, raised $41 million in funding led by Liberty City Ventures and was joined by investors including Morgan Creek Digital, Eidetic Ventures, Givic, ConsenSys, Bloccelerate, Fitz Gate Ventures, Arab Angels, Kenetic Capital, and PropelX.
– Mendel, a San Jose, Calif.-based clinical A.I. and language processing platform, raised $40 million in Series B funding led by Oak HC/FT and was joined by DCM.
– Clipboard Health, a San Francisco-based marketplace matching health care workers with open shifts at healthcare facilities, raised $30 million in Series C funding led by Sequoia Capital.
– Glide, a San Francisco-based software development platform, raised $20 million in Series A funding led by Benchmark and was joined by investors including Y Combinator, First Round, SV Angel, and other angels.
– prezent.ai, a Los Altos, Calif.-based presentation platform, raised $20 million in Series A funding led by Greycroft and was joined by investors including WestWave Capital and Emergent Ventures.
– TULU, a New York-based appliances, groceries, and entertainment devices provider to in-building tenants, raised $20 million in series A funding led by New Era Capital Partners and was joined by investors including Robert Bosch Venture Capital, Kärcher New Venture, Round Hill Ventures, and others.
– Jarvis ML, a Cupertino, Calif.-based machine learning platform, raised $16 million in seed funding led by Dell Technologies Capital and was joined by investors including SHAKTI and others.
– Privy, a New York-based API builder for off-chain user data management, raised $8 million in seed funding led by Sequoia Capital and BlueYard Capital.
– Carbon Upcycling Technologies, a Calgary-based carbon utilization company that produces a CO2-embedded cement and concrete additive, raised $6.15 million in funding led by Clean Energy Ventures and was joined by CEMEX Ventures.
– Influur, a Miami-based marketplace platform connecting celebrities to brands, raised $5 million in seed funding led by Point72 Ventures and was joined by investors including Sofia Vergara, Luis Balaguer, Tommy Mottola, Thalia, Lex Borrero, Magma Partners, H20 Capital, LatinWe, and Loud and Live.
– MetaLend, a Web3 lending services company, raised $5 million in seed funding led by Pantera Capital and was joined by investors including Collab+Currency, Sky Mavis, Ancient8, and MetaStreet co-founder David Choi.
– Perfect Venue, a San Francisco-based private event management platform for restaurants and venues, raised $3.6 million in seed funding led by defy.vc and was joined by investors including Amity Ventures and Context Ventures.
– AMLo Biosciences, a Newcastle upon Tyne, U.K.-based medical device company for skin cancer detection, raised £2.45 million ($3.2 million) from investors including Future Planet Capital and others.
– BattGenie, a Seattle-based software solutions provider for battery management systems, raised $1.5 million in seed funding from investors including Powerhouse Ventures and VoLo Earth Ventures.
PRIVATE EQUITY
– Eurazeo acquired a minority stake in Gisou, a Netherlands-based bee-based hair care brand. Financial terms were not disclosed.
– Insightsoftware, backed by HG Capital, acquired Legerity, a London-based cloud-based accounting rules software provider. Financial terms were not disclosed.
– Integrated Oncology Network, a portfolio company of Silver Oak Services Partners, acquired California Cancer Associates for Research & Excellence, a San Diego-based cancer treatment services company. Financial terms were not disclosed.
– Securly, a portfolio company of Golden Gate Capital, acquired Rhithm, a Fort Worth, Texas-based wellness company for K-12 students, staff and administrators. Financial terms were not disclosed.
OTHER
– Wallaby Medical acquired phenox GmbH, a Bochum, Germany-based neurovascular disease treatment company, for approximately €500 million ($540.9 million).
– Devo Technology acquired Kognos, a Santa Clara, Calif.-based threat detection platform. Financial terms were not disclosed.
– LRQA acquired ELEVATE, a Hong Kong-based ESG and supply chain services company. Financial terms were not disclosed.
– Measurabl acquired Hatch Data, a San Francisco-based a decarbonization platform for real estate. Financial terms were not disclosed.
– The Hettema Group and Themespace, Pasadena, Calif.-based theme park design companies, are combining to form a new company called THG, based in Pasadena, California.
IPOS
– Borouge, an Abu Dhabi-based plastic products manufacturer, plans to raise about $2 billion in an initial public offering, according to Bloomberg. Abu Dhabi National Oil Co. and Borealis AG back the company.
– Lhyfe, a Nantes, France-based green hydrogen producer, plans to go public in Paris.
FUNDS + FUNDS OF FUNDS
– CapitalSpring, a Nashville-based investment firm, raised $950 million for a sixth fund focused on companies in the restaurant, foodservice, business services, technology, and manufacturing sectors.
PEOPLE
– Touchdown Ventures, a Los Angeles, Philadelphia, and San Francisco-based venture capital firm, promoted Will Geiger and Brett Kadesh to director and promoted Maddi Holman and Kathy Quigley to associate.
Correction: The digital version of yesterday’s newsletter has been updated to reflect that Clayton Dubilier & Rice agreed to acquire the hospice and personal care division of Kindred at Home, not the whole company.
Financial Services
