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MenuWhich of the three platforms (AngelList, FundersClub, Gust) is the most effective alternative today when raising a seed round?
Should an entrepreneur list the company to all three platforms?
Answers
It depends on the size of your round but the honest truth is that none of them are effective by themselves. They can be helpful in constructing the total round, but would almost never be able to raise 100% of the round, assuming you're talking about a true seed round of at least $750k.
If you feel you're ready to raise a seed round, there are a handful of seed stage funds that like to lead deals. I have just answered another Clarity question where I list them: https://clarity.fm/a/6503
There are then a number of great funds who will follow in smaller check sizes (average $250k-$500k) behind those lead orders.
These services you mention are best to "fill" a round, when you're looking for extra money, but can't be relied upon to "form" a round. Hope this helps!
I haven't use all of them, but I'm going to take the word of Brad Feld as good when we says AngelList is doing very good work.
http://www.feld.com/archives/2014/01/angellist-accreditation-report.html
You can also see this video:
http://www.businessweek.com/videos/2013-10-22/how-angellist-is-shaking-up-startup-funding
When deciding which platform to use for raising a seed round, it's important to consider the strengths and focus of each. Here’s a brief overview of AngelList, FundersClub, and Gust to help you determine which might be the most effective for your needs:
### AngelList
- **Strengths**: AngelList is one of the most well-known platforms for startups and investors. It offers a large network of investors and provides tools for fundraising, recruiting, and marketing.
- **Features**: Syndicates, job postings, fundraising platform, and the ability to connect with a large pool of accredited investors.
- **Best For**: Startups looking for a broad range of investors and who want additional resources like recruiting and marketing tools.
### FundersClub
- **Strengths**: FundersClub is a curated platform, meaning they select startups based on their potential. This can provide a level of credibility and trust with investors.
- **Features**: High-quality investor network, curated startup selection, and hands-on support.
- **Best For**: Startups that prefer a more selective and supportive environment, and who want access to a network of experienced investors.
### Gust
- **Strengths**: Gust is known for its comprehensive tools for managing investor relations, fundraising, and corporate governance. It has a large global network of angel investors and venture capitalists.
- **Features**: Investor relations management, fundraising tools, business plan creation, and access to a global investor network.
- **Best For**: Startups looking for extensive management tools and access to a global investor network.
### Should You List on All Three Platforms?
Listing your startup on multiple platforms can increase your exposure to a wider range of investors. However, it’s important to manage this effectively:
1. **Consistency**: Ensure your information and pitch are consistent across all platforms.
2. **Time Management**: Managing multiple profiles can be time-consuming. Make sure you can effectively engage with potential investors on each platform.
3. **Platform Guidelines**: Check each platform’s guidelines and rules to ensure there are no conflicts with cross-listing.
### Recommendation
Given the current landscape and the unique strengths of each platform:
- **AngelList** is great for broad exposure and access to a wide network.
- **FundersClub** is excellent for curated support and a more selective investor base.
- **Gust** offers robust tools for managing investor relations and global reach.
If resources allow, listing on multiple platforms can be beneficial. However, if you need to prioritize, consider where your startup aligns best with the platform’s strengths and where you believe you’ll find the most engaged and relevant investor base. For many startups, starting with AngelList due to its broad network and additional tools, then expanding to FundersClub or Gust if needed, can be an effective strategy.
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