Avolk Kohli on Rolling Funds & the VC Landscape

AngelList's Perspective on the Venture Capital Landscape

AngelList possesses uniquely comprehensive data regarding the venture capital market. Their statistics indicate that more than 51% of leading U.S. venture capital transactions utilize their platform and associated tools. This provides them with an exceptionally broad understanding of current industry trends.

Avlok Kohli, CEO of AngelList Venture, recently participated in a discussion at TechCrunch Early Stage. The conversation covered a wide range of subjects, including the current market conditions, the influx of capital into the VC sector, and potential future directions for AngelList. The session began with a presentation summarizing Kohli’s observations, followed by a question-and-answer period with the audience.

The complete interview is available at the end of this article. Below are some key takeaways:

AngelList's Increasing Emphasis on Supporting Founders

Kohli expressed that his entry into the venture capital industry was unexpected. However, the opportunity for AngelList to evolve into a novel entity proved compelling.

When asked to detail potential products geared towards founders, Kohli elaborated on his vision:

Launching a Rolling Fund? Prioritize Partner Communication

A significant portion of the interview (beginning around the 27:10 mark) focused on rolling funds. AngelList introduced this investment model last year, challenging conventional fund practices to streamline and expedite the investment process.

Kohli provided a clear explanation of the rolling fund concept and its distinctions from traditional fund structures:

Analyzing data from over a year of rolling fund activity, we sought to identify common traits among successful funds. The answer proved straightforward: consistent and transparent communication with investors is crucial.

Advice for Entrepreneurs Seeking Funding

Kohli himself is an experienced entrepreneur, having previously sold several companies before assuming the role of CEO at AngelList Venture. As the interview concluded, he was asked for guidance for founders currently seeking investment. His core message? Founders should exercise discernment in selecting investors.

A full transcript of the interview can be found here.