
AngelList’s Newest Experiment: a $25M Fund to Invest in Angel Investors - adidash
http://blogs.wsj.com/digits/2014/04/15/angellistss-newest-experiment-a-25-million-fund-to-invest-in-angel-investors/
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primitivesuave
This is basically saying, "Let's package together a bunch of volatile high-
risk, high-return investments in a completely unregulated market and sell that
to people".

Seems like Silicon Valley financiers are beginning to think like Wall
Streeters.

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ig1
This isn't Joe Random they're selling to, they're selling to institutional
investors who are sophisticated buyers.

There are plenty of people who fully understand the risks involved who want to
engage in high-risk high-return investment (especially ones where the risk
profile is significantly different from their other investments to provide
hedging).

There are risks with this model (for example there may be less due diligence
then you traditionally get with VCs) but the overall risk model probably isn't
hugely different from a seed stage fund.

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IBM
Joe Random wasn't buying Wall Street's CDOs either.

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tpeng
Interesting name for the fund. Maiden Lane LLC was the bailout vehicle created
by the Federal Reserve during the credit crisis, named after the street
address of the NY Fed.

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benmathes
AngelList's office was/is on Maiden Lane in San Francisco.

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hendzen
At this rate we should be expecting a Troubled Angel Relief Program in 2-3
years.

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nashequilibrium
Okay, now this is becoming like the hedge fund industry of 2008, first there
was hedge funds, then fund of hedge funds, then fund of funds!

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venomsnake
To iterate is human, to recurse is divine

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beat
How very meta.

It'll get _really_ interesting when someone creates a derivatives fund on
angel investing performance.

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username223
It's like reinventing multi-level marketing one level at a time.

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davros
This is an interesting variation on the sidecar concept. It makes sense to
look for ways to leverage the efforts of skilled angel/pre-seed investors.

These high-skill investors often add significant value through mentoring,
introductions, and so on. Anything that encourages that and gives them more
ability to do that is a very good thing in my view.

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NomanA
Interesting the focus of AngelList continues towards the investors...last year
it was syndicates and now a funds of funds. Before it was focused on the
Startups/entrepreneurs...deal flow/recruiting/accelerators...have they
completely tapped out the opportunity to help the entrepreneur? I don't think
so...

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raheemm
This is an innovation that is great for entrepreneurs. AngelList is certainly
thinking out of the box.

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jrochkind1
I think we need another derivative on that, can I invest in people who invest
in angel investors?

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mrharrison
Awesome, got to love High Risk Mutual Funds. This seems like the right way to
go, because most don't have the time to research startups.

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rebelidealist
So it is a fund of fund of funds?

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cylinder
So... venture capital? The difference between angels and VC is that angels are
investing their own money and VCs are general partners investing on behalf of
their limited partners (investors). Not a new experiment at all, it's just
smaller scale VC.

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naval
No management fees, angels invest their own money alongside, no 10-year
lockup, enter / leave with one click, track everything online, and have 40
angels invest $25M instead of 2 VC Partners. But yes, other than that, there's
nothing new here.

