Do these 3 things before launching your Angel List RUV
Industry

Do these 3 things before launching your Angel List RUV

The world of venture is changing -- Solo capitalists are getting larger allocations, more individuals are becoming angel investors, and more founders want to build armies of helpful operators (ie, angels).  

It's not new that angels have high ROI on your cap table.  Harry Hurst from Pipe talks about "Check Size : Helpfulness Ratio". Jordi Hays from Party Round talks about how they started the company as a result of founders having trouble raising from lots of small angels due to costs, efficiency, and legal.

I've had a front row seat at ~150 fundraises over the last 9 months as a result of Journey becoming a useful vehicle to help founders tell their story in a fundraising pitch.  One of our customers, Sean Conrad (Founder of Pickle Pics) put it best in this tweet.

I wanted to share the 3 tips to help founders thinking of doing an Angel List Roll Up Vehicle from my experience:

Send updates, join the RUV Alliance, and use Pump:

Angel List (and no one for that matter) is going to generate interest for you.  RUV Alliance is a community of 1K+ accredited angel investors specifically looking for great companies to invest in without fees or carry. Join that community early and start getting a feel for how to work the discord to build relationships with investors.  

However, just because you put your deal up in the alliance, does not mean that wires will automatically start hitting your bank.  Whenever you talk to an investor, customer, friend, etc. -- if investing in your company comes up and there is intent, make sure you make note of this and build your list of angels with intent to invest.  Put these people on your monthly updates and live rent free in their head 1x/month.  You can also do bite-size updates on Pump if that's more your style versus the 1x/mo email update.  This is hugely valuable to get beyond a cold start to your raise as you'll want to show some validation from others investing as many investors look for signal of some sort.


Stand out with your materials

Some founders are 14 year old prodigies with term sheets from a16z.  Pretend for a second that you are not this founder who can send out uncapped SAFEs with no materials.  Specifically, put time into some content that helps you tell the story best asynchronously.  This could be a Loom video, a product demo, a pitch deck, a figma prototype, miro board, customer testimonials, investor testimonials, or a combo of these.  

I like to say do the work like you would do if you were an enterprise salesperson trying to close a big deal.  You wouldn't send every prospect the exact same thing and I think the same goes for an investment process.  Learn as you go, tweak materials based on conversations you have with investors or personalize them before or after your live meetings.


Leverage initial angels for momentum and evangelism

Going back to step 1 -- if you did the work here, you should have a list of angels with intent.  Send them a form with your materials mentioning that you're going live with your raise and confirm their commitment ($) based on your terms or better yet just send them your RUV link.  Considering they are early supporters, offer live calls and ask for feedback on your materials before sending out to a broader network or the RUV Alliance.  If they invest, ask them for a quick loom or testimonial of why invested.  This will help others in the process to understand why people are supporting you on your journey, especially if they are an operator with expertise in your company's field.


That's it for now -- reach out to me - brendan@journey.io if you have other tips or if I can help you!

Author

Brendan Weitz

Brendan is the co-founder of Journey and previously worked at companies like Quora, AdRoll, and Facebook. He enjoys 16 hour plane rides and misses living in Tokyo.

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