Listen to PandoWeekly with Naval Ravikant of AngelList
Next week we'll finally experience some of the results of of the JOBS Act in action -- startups (and venture funds) will be able to engage in general solicitation, i.e., advertising that they are fundraising. They still can't raise money from just anyone, but they can at least talk publicly about it, after jumping through a few hundred hoops.
Naval Ravikant, founder of AngelList, has been vocal about the dangers of some of those hoops proposed by the SEC. He noted today that the SEC will stop taking feedback on the proposed rules on Monday, after which it will hand down a formal set of rules. (He also directed anyone who agrees with him to provide feedback to the SEC via AngelList's dedicated page.)
On today's episode of PandoWeekly, I spoke with Ravikant about general solicitation (which I wrote at length about earlier), demo days, and balancing the potential for fraud with funding innovation.
We also discussed the phenomenon of being featured on AngelList, and how startups can increase their chances of being chosen. (The site features new startups each day, which typically results in a flood of inbound interest from investors.) Lastly we discussed what the Series A crunch looks like one year in, and whether or not it's a bad thing that more funded startups are failing.