AngelList & CoinList Partnership: Funding for Crypto Startups
A New Funding Avenue for Crypto Startups
Crypto is experiencing a resurgence in popularity, prompting AngelList and CoinList to introduce a novel method for crypto-focused founders to secure funding using cryptocurrency.
Introducing Crypto SPVs and RUVs
The two companies are collaborating to launch crypto special purpose vehicles (SPVs) and crypto roll-up vehicles (RUVs), as revealed exclusively to TechCrunch on Wednesday.
This partnership aims to provide a streamlined process for users to “raise capital through syndicates and manage crypto startup investments in a manner consistent with the crypto ecosystem.” A syndicate represents a collaborative group of entities or individuals pooling resources for a substantial financial undertaking.
Funding with Stablecoins
AngelList will enable users to fund crypto SPVs using stablecoins, currently without any transaction fees.
“This approach simplifies funding for crypto investors who may not rely on traditional banking systems,” explained Raghav Gulati, CEO of CoinList. USDC, a digital representation of the U.S. dollar, functions as a stablecoin redeemable at a 1:1 ratio with U.S. dollars.
Token Distribution and Compatibility
Tokens can be directly distributed to limited partners (LPs) and are designed to be compatible with a wide range of token issuers and investors located outside the United States.
Integration with CoinList’s existing software platform is anticipated shortly, according to the companies.
The Benefits of Token-Based Returns
“This model is particularly impactful because investors receive tokens as soon as they become available, rather than traditional cash returns,” Gulati stated to TechCrunch. “This aligns with the core principles of crypto, emphasizing stakeholder participation and asset self-ownership.”
Streamlining Investment Collection with RUVs
Crypto roll-up vehicles are specifically designed to consolidate investments raised by a founder during a funding round.
The primary benefit for startups is the reduction of administrative burden related to “managing compliance for numerous stakeholders” during the initial stages of development.
“Many crypto startups actively seek investment from a large number of angel investors,” Gulati noted. “RUVs facilitate a more efficient process, allowing dozens of angels to complete necessary paperwork, transfer funds, and receive ongoing reports through AngelList Crypto RUVs.”
A Resurgence After Crypto Winter
The acceptance of crypto within mainstream investment circles, where AngelList operates, experienced a downturn during the “crypto winter.” This period saw a decline in interest in Web3 technologies and legal repercussions for prominent figures like Sam Bankman-Fried and Changpeng Zhao.
Renewed Interest in Crypto
However, with Bitcoin reaching unprecedented highs and demonstrated interest from the Trump administration, crypto is poised for a renewed period of growth and acceptance within the broader technology landscape.