What is AngelRoot?
AngelRoot is a platform that provides sophisticated tools for investors to discover, source, quantitatively screen, collaborate, refer and curate. Due diligence, valuation and negotiations are conducted outside the confines of the platform.
Startups, seeking to be discovered, publish profiles in the AngelRoot networks that are aligned with their business. Then they can then listen in as investors collaborate by anonymously rating and making comments about their business. Startups will know what's being said about them, but not who's saying it. The idea is that investor feedback can help make a startup more investment worthy.
FUND RAISING: Can we use AngelRoot to raise capital by selling shares of our company?
No. You can not raise capital on AngelRoot. You can, however, "test-the-waters" by publishing your startup profile so that it can be discovered and screened by investors. AngelRoot is not a funding portal. Instead it is a portal designed to be used by funding portals and the startups, investors, syndicates and fund managers that use them.
FEES: How much does AngelRoot cost?
For the most part, AngelRoot is free. There is no charge to sign up and join aligned networks. A detailed list of the fees we do charge can be found at: http://about.angelroot.com/fees.html
NETWORKS: I'm not sure which networks to join - what networks does AngelRoot support?
In as much as we just launched, we don't have a large enough user base to begin flowing collaboration and feedback through networks. Down a road a bit, though, we will. Here's a list of the networks we will support: http://about.angelroot.com/join-networks.html. If your school isn't listed and you feel that there are alumni investors and entrepreneurs that would be interested, by all means, please let us know.
FEEDBACK: I'm not getting feedback. Is anyone reading my startup profile.
There could be a number of reasons why. Bear in mind, if we are in still beta, there may not be a sufficient number of investors yet on the platform. We plan to remain in beta until the platform begins to really populate. We suggest that while you are in administrator (edit) mode, you open your startup profile's "traction" tab (we're finishing it up so it may be coming soon). It should tell you if your profile is being opened from the discover browser, and if so, by the members of which network. If it is not being opened, take a look at the comments being made under the "knee jerk" sub tab. They should give you an idea of how your pitch is resonating. If no one seems to be opening your profile, gove us a call and we'll help you figure it out.
ANGELLIST: What’s the difference between AngelList® and AngelRoot™.
Great question. The short answer: AngelList facilitates investments in pre-curated deals. AngelRoot facilitates curation.
AngelList® is simply brilliant. They have become a faux “public” market for early-stage deals. AngelList® is often referred to as a funding portal even though the label is technically inaccurate. Portals are intermediaries that earn fees when one of their curated and vetted companies is funded. AngelList, follows a venture capital model, earning a portion of the “carry” when a funded company is harvested.
AngelList offers individual investors two basic options: To invest into a targeted “micro fund” that has chosen and vetted a number of companies (portfolio approach); or to co-invest via a “syndicate” formed specifically for a company that has been selected by a lead investor. Under either option, individual investors are more or less depending on someone else’s curation skill. The approach is referred to as social proof. As groups of individual investors subscribe to syndicates and funds, a follow the crowd (“pack” investing) mentality begins to emerge.
The premise of allowing a more experienced investor, to influence the decision of a less experienced investor is rock solid. There is, however, an ongoing debate about the approach as it juxtaposes traditional “highly curated” angel investing. Think of betting on a horse race. Under the first approach your decision is largely based on the jockey. Highly curated investing, allows you to also fully consider the horse.
You cannot invest on AngelRoot. You can, however, curate. We envision that AngelRoot will become an essential companion for not only the individual investors that use AngelList but their fund managers and syndicate leaders as well. You may want to read where AngelRoot fits into the startup landscape: http://about.angelroot.com/portal-for-portals.html
"NOODGE" A CIRCLE: What is “noodging” a circle
We borrowed “noodge” from an old Yiddish expression. Even though the behavior most often refers to being a pushy, pain in the ass, we are using the expression in a nice context – to be assertive and persistent. Two essential qualities of being a great entrepreneur.
Many ambassadors allow startups to ask their circle members to read their profile: If after reviewing an ambassador’s deal preferences (preferences can be different than criteria), you can ask (“noodge”) their circle members to read your startup profile. A flag will appear alongside your profile in each circle member’s discover browser. A “noodge” essentially says: “please screen my startup profile – I believe that my startup very substantially matches what you are looking for”.
Caution: if your startup does not substantially match the ambassador’s preferences and you “noodge” their circle, you will probably not receive kind feedback. So, please choose the ambassador circles you want to noodge carefully. Moreover, do not noodge more than one circle per week.
APPLY TO BE SCREENED: What is “applying” to be screened?
Many ambassadors allow startups to directly apply to their organization, one of their funds or one of their programs. If after reviewing an ambassador’s criteria (criteria can be different than preferences), you can apply to have your startup profile screened by that ambassador’s screening committee. A flag will appear alongside your profile in each screening committee member’s discover browser. Applying essentially says: “please consider my company by carefully screening my startup profile – I affirm that my startup very substantially meets your application criteria”.
"NOODGE vs APPLY" What is the difference between “noodging” a circle and “applying” to be screened.
When you “Noodge”, you are asking the members of an ambassador’s circle to read your startup profile. You are affirming that your profile matches their preferences.
When you “Apply” you are asking the members of an ambassador’s screening committee to screen your profile and consider your startup (i.e. for funding, to accept your startup into a program, etc.). You are affirming that your profile meets their application criteria.
NETWORKS: Where should I subsccribe?
If you submit your profile during our beta, it will be published everywhere so there is no need to pick networks.
If you submit your profile after our beta, you will need to decide where you to subscribe.
When you first publish your profile (Profile Management Tab > Submit) you will be asked to pick a University network. If there's one where you went to school, the choice is easy. If there isn't, you can select any university network. After our beta, you will be able to research the composition of each network by selecting it from the Discover browser. Our suggestion is to try to find one where the preferences of its members match your business. Your profile will also automatically be subscribed in the Industry network that matches the industry associated with your profile.
Please be patient. Don't rush to publish your profile in other networks until you start getting feedback.
SEARCH ENGINES: Why is my startup profile visible to search engines.
The top portion of your profile, the public section, is visible to the general public. The other sections are only visible to AngelRoot users after they log in. And, some sections of your profile (investment and financial information) are only visible to investors who have affirmed that they are accredited or have agreed to comply with the investment limitation provisions of the JOBS act.
NOMINATIONS: I'm an ambassador, who should I nominate?
Here's an explanation of how we plan to share our revenue: http://about.angelroot.com/revenue-sharing.html.
We'll begin sharing our revenue after we complete beta testing.
TECHNICAL ISSUE / PROFILE: I don't see my profile in the discover browser.
You probably haven't publish it yet. Before they are published, profiles are only accessible through the "my profiles" section of its administrator's dashboard. Once you are happy with the way it looks and are ready to publish it, open the "profile management" tab / "submit profile" sub tab and follow the instructions to publish it. If the "submit profile" tab isn't opening, check the error message. You probably missed a required field. If you are still having problems, contact us.
TECHNICAL ISSUE / COLLABORATE: I'm an investor (or mentor), why can't I collaborate?
In order to collaborate, you first need to first screen the profile you are reading. After you enter your own ratings and comments and submit them, you should be able open the collaborate sub tab. If, however, the startup has not subscribed to one of the networks you have joined, you will not be able to open the Collaboration sub tab. If you wish to collaborate you have two choices: (a) join one of the networks where the startup has subscribed; or (b) gve the startup a one month subscription to one of the networks that you have joined.
PROFILE CONTENT: We have more than one social mission - Why only one drop down.
It's wonderful that your startup has multiple ways it plans to make our world a better place. Sadly, most startups don't even have one. If enough startups ask, we'll add another dropdown, but for the time being, We suggest you pick the most important one and explain it in more detail in the text box below the drop down. If you have even more information to provide, there's a subtab in the executive summary section that can be used.