On Wednesday, Matt showed you how to follow Venture Capitalists into equity crowdfunding deals »
That’s a super smart strategy for finding high-quality investments that brand name “VCs” are putting money into. At the moment, however, those deals are still few and far between.
The most active investors on crowdfunding platforms are angel investors. As opposed to VCs, who invest capital on behalf of their limited partners, angels invest their own money into deals, and usually do so in earlier, smaller rounds of fundraising. There are about 462 venture capital firms in the US; compare that to 250,000 active angel investors.
If you followed these angels, you’d see a huge amount of investment opportunities.
But that raises a question: without the “brand name” of a big Venture Capital fund, like Union Square Ventures or Benchmark, how do you know which angel investors are worth following?
Today I wanted to share a simple trick we use to find (and follow) some of the most successful angels – folks who’ve invested in companies like Instagram, which sold for $1 billion, or Twitter, which just filed to go public.
The One Tool to Rule Them All
The “trick” I’m referring to actually starts with a “tool.” It’s a website: www.CrunchBase.com
If I had to pick one service (aside from Crowdability) that every crowdfunding investor should use religiously, it’s CrunchBase. As the name implies, it’s a massive database of information on early-stage financings, hiring’s/firing’s and mergers & acquisitions.
If I need to look up anything about an early-stage business – whether I’m trying to find out who its CEO is or how much capital they’ve raised – chances are I can find the information on CrunchBase.
But the best thing about CrunchBase is that in addition to giving you valuable information about a company, it also gives you valuable information about that company’s investors.
Pick a Deal, Any Deal
Let’s walk through an example together…
Last week, Matt wrote about a company called Fab.com. Fab recently raised a massive round of financing at a billion-dollar valuation.
If I were interested in finding out who invested in Fab’s angel round, I’d start my search on CrunchBase. I’d simply type “Fab” into the search box at the top of the CrunchBase homepage and then select “Fab.com / Company” from the drop-down menu that appears.
Follow the Leader
Rinse & Repeat