The rolling fund is an Angel List product that allows investors to raise capital on a subscription-like basis. The year 2020 was when that happened. There has been a lot of change.
Did you mean one of those changes? There are a lot of pitches from founders. It has gone down since March. About 20 to 40 well-vetted decks a week used to be the norm, but that number is now down to about two to four a week. The quality of talent has gone up for people who want to work for Gumroad, which he partly attributes to the decline of start-ups.
A downturn in the number of founders raising capital suggests that early-stage startup aren't as immune to macroeconomic shifts as some investors claim; in contrast, a boom of fresh startup would support the idea that recessions are the time when startup are born.
“I think that the total number of founders we’re going to see will be fewer, but the quality bar is going up.” Redpoint managing director Annie Kadavy
The state of founders is broken down into three buckets. He said that the group of people who started companies in bull markets have dropped by about 100%.
In bear markets, they are not fundable. People need to be hired to build stuff. Immigrant founders care less about the reputation of their company than they do about the risk of returning. Lavingia says that the founder cohort has been halved. They all existed and therefore raised money in 2020- 2021. so they too are not starting companies and raising money at the same rate.
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