AngelList has launched Spearhead, a program to fund founders with a $200K fund so they can start angel investing.
The founders will also receive mentorship, including monthly masterclasses from top angel investors and VCs so that they can receive up to $1M to invest over 2 years. The first cohort starts by January 26.
“We started Spearhead because the growth in new startups requires new investors to help them flourish,” said AngelList in a blog post. “We hope these new investors will also make angel investing a little more meritocratic and inclusive, not merely for the wealthy.”
According to AngelList, founders are some of the most helpful startup advisors as they help new companies with startup experience and technical expertise. The fund aims to give the founders the necessary capital to invest in startups like their wealthy counterparts.
“Spearhead backs founders so they can help startups with advice and money. This lets startups raise money from their most helpful advisors. It compensates founders for their advice. And it creates more high-quality opportunities for downstream VCs,” added the firm.
The cohorts will see founders learn how to size up markets and startups quickly. They’ll learn when to pass because the valuation is high. They’ll learn the pitfalls of bridge rounds. They’ll learn the value of pro ratas. They’ll learn when co-investors are providing signal and when they’re not.
Above all founders will become better founders by working with other top founders in their cohort.
Spearhead is a collaboration between the venture capital firm Accomplice and AngelList. AngelList provides the technology and back office (lawyers, accountants, et cetera). Accomplice is the largest investor in Spearhead. Investments don’t require Accomplice’s approval and founders are encourage to get additional investors for their fund.