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Exclusive: AngelList raises $24 million at a heavenly valuation

September 22, 2013: 5:20 PM ET

AngelList builds its war chest, as the SEC prepares to lift its ban on general solicitation.

130919154158-angel-investors-614xaFORTUNE -- For years, AngelList has freely facilitated introductions between entrepreneurs and investors. Now it's raised some big cash of its own.

Fortune has learned that AngelList recently raised around $24 million at a valuation in the $150 million range. Atlas Venture and Google Ventures helped lead the round, which included participation by more than 100 other institutions and individuals. Among the more notable names are Kleiner Perkins Caufield & Byers, Draper Fisher Jurvetson, Marc Andreessen, Max Levchin and Ev Williams (all of whom have profiles on the site).

None of the venture investors will receive a seat on the AngelList board of directors, nor are the equity investments tied to any proprietary insights. In fact, one reason the company raised money from so many different sources was so as not to appear beholden to any particular firm or individual.

Related: Venture capital gets disrupted

This is not the first time that AngelList has raised funding -- Atlas Venture, for example, first invested a small amount three years ago -- but this is the deal that could help transform AngelList from a popular project into one of Silicon Valley's top power players.

"I first invested personally when it was just [startup investment advice blog] VentureHacks, which was not a VC-backable business," explains Jeff Fagnan, a partner with Atlas Venture. "But today I'd compare it to Craigslist for startups, and they are doing a lot of the things that LinkedIn (LNKD) and NASDAQ (NDAQ) do for larger businesses."

Related: The future of startup 'demo days'

AngelList originally launched as a way to help connect entrepreneurs and investors, but since has expanded into such areas as recruiting and direct online investment (a lot of the $24 million was raised via the AngelList system).

It also has a program called "syndicates" -- a digital twist on the fundless sponsor model. From the AngelList site:

Here's an example. Sara decides to invest in a startup and asks for a $250k allocation in the company. She personally takes $50K of the allocation and decides to syndicate the rest. She shares the deal with investors and specifies that she is charging a 20% carry on the remaining $200K of her allocation. Sara's capital and her co-investor's capital is pooled into a $250K fund which invests in the startup.

In such a scenario, Sara would pay a small cut of her carry back to AngelList. Venture capitalist Hunter Walk yesterday blogged more about syndicates, giving three examples of their "powerful future."

AngelList declined to comment for this story, but I would assume that new products could be rolling out as soon as tomorrow -- as the decades-old ban on general solicitation is officially lifted by the SEC. For example, it will no longer be illegal for startups to tell a general audience that they are seeking investment (even though only accredited investors would be allowed to actually invest). The same will be true for private investment funds.

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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