New Rules Break Down the Walls for New Angel Investors
October 10, 2013 Leave a comment
New Rules Break Down the Walls for New Angel Investors
Easing of Government Restrictions Allows Funding Syndicates Such as AngelList to Flourish
SPENCER E. ANTE and EVELYN M. RUSLI
Oct. 8, 2013 8:45 p.m. ET
When entrepreneur Jakub Krzych raised seed funding for his first technology startup in 2009, it took him around six months to scrounge together $20,000. A few weeks ago, Mr. Krzych rounded up $250,000 in just three days for his second startup, called Estimote. What changed? An easing on some of the U.S. government’s long-standing restrictions on fundraising has given life to a new type of venture-financing vehicle called an online syndicate, that allows so-called “angel” or early-stage investors to quickly assemble a group of investors over the Internet. Read more of this post




