Raising capital is a pivotal moment for any startup. AngelList and Carta are two leading platforms that provide key services to support early stage fundraising and cap table management.
This comprehensive guide examines how AngelList and Carta compare for startups seeking financing, liquidity, and investor management capabilities.
Feature | AngelList | Carta |
Main focus | Investor introductions | Equity management |
Key features | Investor matchmaking, syndicates | Cap table, valuation, exits |
Funding sources | Angels, VCs, crowdfunding | Angels, VCs |
Pricing | Free for startups | Subscription plans |
Ideal for | Early stage capital | Cap table management |
AngelList is an online platform that connects startups with angel investors, venture capital firms, and syndicates. It provides investor matchmaking and capital introduction services.
Key features include:
AngelList is free for startups to use. Revenue comes from fees charged to investors.
Carta offers cap table, valuation, equity, and liquidity management software for private companies.
Key features include:
Carta charges a subscription fee starting at $300/month for startups.
While there is some overlap, AngelList and Carta serve different primary purposes:
Fundraising – AngelList’s main focus is helping startups raise capital through introductions to angels, VCs, syndicates, and investors on its platform. Carta does not directly facilitate fundraising.
Cap table management – Carta provides automated cap table upkeep, valuation, scenario modeling, and equity management capabilities that AngelList lacks.
Investor relations – Both AngelList and Carta provide CRM-like tools to manage investor relationships and LP stakes. Carta has more robust investor profile tools.
Liquidity – Carta offers some secondary liquidity to shareholders by pooling external investments. AngelList enables liquidity through its syndicates.
Hiring – AngelList has a large startup job board for recruiting whereas Carta does not have hiring features.
For early stage fundraising, AngelList provides more direct value through investor introductions. For cap table management, Carta has superior purpose-built tools.
AngelList is 100% free for startups, with costs paid by investors. Carta charges a monthly subscription fee:
Plan | Price |
Carta Starter | $300/month |
Carta Standard | $600/month |
Carta Premier | $2,400/month |
Carta also charges additional fees for generating legal documents related to the cap table.
For cash strapped early stage startups, AngelList provides more affordable fundraising support. Once past seed stage, Carta’s cap table management capabilities merit the subscription cost.
AngelList allows startups to access a large network of investors, get matched with relevant leads, create syndicates, and raise early stage capital for free.
Startups create a profile with their company information. Investor matches are made using algorithms and user preferences. Introductions enable pitching to angels, VCs, syndicates, and the AngelList investor community.
AngelList is overwhelmingly positive for early stage startups by enabling access to startup capital that is traditionally hard to access. The only negative is that fundraising success is not guaranteed.
AngelList rebranded to AngelList Venture in 2021. This renaming aimed to reflect the platform’s expansion beyond angel investors to include VCs, syndicates, and later stage funding.
Also Read: Comparison Between Ramp And Expensify.
There is no definitively “better” platform between AngelList and Carta. The optimal solution depends on the startup’s stage and needs:
Startups should evaluate whether they need fundraising support or more advanced equity management capabilities when deciding between AngelList Vs. Carta. Opting for both platforms is also viable depending on budget.
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