Jason Calacanis2 (Photo credit: Wikipedia)

How The AngelList Website Is Shaking Up Tech Startup Funding

The funding process for startup companies is evolving, and it is making traditional venture capitalists worried. A firm called AngelList introduced a new product named AngelList Syndicates. Using AngelList Syndicates, rich people can invest their cash with "angel" investors, who manage the tech startup funding process with the pooled money.

AngelList takes five percent of any profits earned by those investments. The angel investors receive fifteen percent. The rich people will receive the remainder. About a month ago, "angel" and entrepreneur Jason Calacanis shook up the startup industry by revealing that he'd set up an Angel Syndicate, which raised $300,000.00 in only seven days.

English: , founder of venture capital firm Draper Fisher Jurvetson, widely recognized creator of "viral marketing" (Photo credit: Wikipedia)

Should You Consider VCT Funds For Your Tech Startup Funding?

Getting funding for your business during its early stages can be difficult. A bank loan might help in the short-term if you already have established profits and a history with the bank, but many individuals are forced to look elsewhere for help in expanding. If your early-stage business needs help, you might consider looking into Venture Capital Trusts (VCTs) for help in funding. Like any venture capitalist, such an organization will generally provide you with funding for a certain investment in your business.