CrowdFunding the Early Stage Marketplace vs. Angellist

Photo Source: PSD Graphics

Photo Source: PSD Graphics

CrowdFundBeat, By Elliott Dahan, While presenting the Early Stage Marketplace, I have been asked to compare ESM to Angellist.

Angellist is a great List of Angels that serves the interest of a select group of angel investors. Angellist presents a moderated list of startups for the benefit on one group – investors.

ESM is a global marketplace serving the self interests of all members of the early stage community: Sponsors, Companies, Partners, and Funders.

Angellist is a subset (Angel investors) of a subset (Funders) of the total ESM community.

ESM believes that all early stage companies need both Funding and Validation.

1) Angellist does not support all levels of “heavy lifting” from Sponsors: Sourcing, Screening, Mentoring. Incubation and Angel. Yet, at any point in time, a Partner or a Funder may want to find a Company that has been sponsored at one of these levels.

2) Both ESM and Angellist believe in the importance of the “reference”, but Angellist limits its reference base to Angels and Incubators. ESM believes that the Funder and the Partner should be able to choose the type of reference it wants. Examples of some of the areas from which an acceptable reference can come are: Credible Local Organizations (Software Development Forum in San Jose or the CED in Durham, NC, Tie); University and Federal Tech Transfers, Competitions (Demo Days); Seed Money Mentors (Y Combinator, Tech Stars); Non Profit Incubators (NBIA, university incubators).

3) Angellist does not encourage the full range of startup -from one person with a powerpoint to a team with a launched product. Angellist still leans, quite heavily, on the traditional angel metrics.

4) Angellist does not have an operational model to facilitate collaboration between Partners (those companies and organizations with a commercial interest in the technology, products and talent of startups which support internal operating divisions) and Funders. VCs report that 75% of their liquidity events are with public or private companies and Partners provide the ultimate validation for any startup.

5) Both Angellist and ESM realize that 2/3 of Angel Groups Co-Invest (“Halo Report,” a joint project of the Angel Resource Institute, Silicon Valley Bank and CB Insights. March 2012). But, Angellist limits the Angels who can lead a Syndicate to those Angels it has already approved to be on Angellist. ESM encourages both a much wider range of investors to participate in deal syndication with a broad group of angels.

6) Angellists model is a linear transaction: money (angel or crowdfunding)-to-startup. ESM’s model is a dynamic marketplace where at any point in time any member of the early stage community can be either a buyer or a seller.

Angellist puts the Angel at the center of the investment. ESM puts the startup at the center of the Angel investment.

Tags: , , , , ,


BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

MarketWatchWhy a crowdfunding site is giving out $10000 scholarshipsMarketWatchCrowdfunding site GoFundMe announced Thursday that it will award $10,000 to 10 students with pages on their site that fundraise for education. The award is part of a contest the site held throughout Septemb [...]

MottoYou'll Never Believe How Couples Are Paying for IVFMottoMore and more couples are turning to crowdfunding to fund costly in vitro fertilization (IVF) treatments, Bloomberg reports. The cost of IVF treatments, a popular choice for women struggling with infertility issues, ave [...]

WestwordProgressive-Rock Band Marillion Pioneered CrowdfundingWestwordThat was the beginning of crowdfunding for us — and for every band, really.” When it came time for the recording and release of the followup to the 1999 record, Kelly and the band realized that one of [...]

Huffington PostReal Estate Crowdfunding's Pathway of ChangeHuffington Post“Crowdfunding is just the Internet,” stated Attorney Mark Roderick as he opened last month's RealCap Chicago. RealCap is an annual conference that joins crowdfunding leaders and innovators to propel th [...]

CoinTelegraphCrowdfunding vs. ICO: Experts Question Legitimacy and Guarantees ...CoinTelegraphThe simplistic idea behind crowdfunding a non-existent software or system has become a trend in the cryptocurrency industry, but most Bitcoin experts are highly ...and more » [...]

Crowdfund Expansion - Seedrs Moves Into Europe With EU Financial Services PassportForbes“We want break down national barriers and geographic barriers,” says Jeff Lyn, co-founder and CEO of UK crowdfunding platform, Seedrs. “Why limit investment to within fifty miles of your house?” On [...]

ForbesVenture Crowdfunding Revisited: An Update with NIN VenturesForbesI am about to head off to attend the Global Crowfunding Convention (GCC) 6 in Las Vegas. It will be my fourth time attending. The crowdfunding industry has grown from $16 billion in 2014 to $34 billion in 2015, and [...]

Crowdfund InsiderTitle III Crowdfunding Might Not Be What Many ExpectedCrowdfund InsiderI have been immersed in the equity crowdfunding industry since late 2015 and have tried to collect as many different perspectives on the industry from as many experts as possible. And while it is h [...]

PC MagazineHow to Crowdfund Without Going Broke and Irking Your BackersPC MagazineTo say crowdfunding is on the rise would be an understatement. Crowdfunding—raising small amounts of money from a large number of people in order to launch a product, service, or project of some sort—is [...]

CFB Finance

Press Release

CrowdFund Beat News

Hello @CrowdFundBeat's 17296 followers - thank you so much for following! Wishing you all a happy Friday! >>

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |