Technology
The Role of Angel Platforms in Angel Investing Ecosystem: Gust vs AngelList
The Role of Angel Platforms in Angel Investing Ecosystem: Gust vs AngelList
Angel investors play a crucial role in the startup ecosystem, and Angel Platforms like Gust and AngelList have emerged to support these investors. Understanding the differences and the role each platform plays in the ecosystem is crucial for both founders and angel investors. This article explores the discrepancy between the awareness and utility of Gust and AngelList among different segments of the angel investing community.
Why Angels in Groups Know Gust
Angel groups, a collective of angel investors who pool their resources and engage in co-investments, have become a significant part of the startup ecosystem. The people who run angel groups use platform Gust to administer and manage their groups. Since Gust is specifically designed for this purpose, angels within these groups know about Gust because it is where they see their deal flow. This direct involvement in the administrative aspects of their group has made Gust a familiar name to many.
Why Angels in Groups Don't Know AngelList
Angels in groups typically don't need to look for deal flow themselves because they have administrative personnel dedicated to this task. Therefore, the need to seek out platforms like AngelList is minimal. The deals they receive are already curated and vetted, making external platforms like AngelList redundant.
Why Angels in Groups Avoid Sites Like AngelList
Experienced angels often have a critical eye towards the quality of deals posted online. Deals that are 'freely available' without rigorous vetting may raise suspicion. The sentiment is often 'if a deal isn't funded yet, there must be a problem with it.' This skepticism extends to online platforms where deals are available without the oversight of a trusted group administrator. Consequently, angels tend to dismiss platforms like AngelList as 'crappy sites' unless they have credible internal networks or administrators.
Why Founders Don't Know Gust
Gust is primarily designed to benefit angel groups, making it less accessible or relevant to founders. The primary user base of Gust is the administrators and participants of angel groups rather than individual founders. As a result, many founders may not be aware of Gust unless they are part of an angel group or have heard of it secondhand.
Conclusion
The discrepancies in awareness and utility among different segments of the angel investing community highlight the importance of understanding the specific needs and processes of each group. Angel platforms like Gust and AngelList serve distinct roles and cater to different user segments. Founders and angel investors should be aware of these differences to make informed decisions and leverage the right resources.