Andrew Cove moved to New York from Santa Monica on May 1 planning to join NYU’s ITP program. Oops. Somehow the entrepreneur, fresh off his first failed startup, wound up at an internship at IA Ventures which “opened some interesting doors”–and one of those doors eventually led to the startup-investment matchmaker AngelList. A happy coincidence, it seems, as Mr. Cove was somewhat down on his luck before he moved to the city.
“There was baggage–I had just killed a startup,” he said. “I just kind of wanted the experience of living in New York City. It never occurred to me to consider I’d be working for something based in San Francisco.”
New York is the second-most active market on AngelList. Based on the deals companies reported to AngelList, which is far from comprehensive, Silicon Valley is responsible for 53 percent of investments, followed by New York with 18 percent, AngelList founder Naval Ravikant told The Huffington Post.
Los Angeles accounts for six percent of deals; then Austin with five percent, Europe and Boston with four percent and Seattle with three percent.
AngelList, which has no revenue and is supported by a grant from the Kaufman Foundation, has been growing by leaps and bounds since launching in 2010. AngelList now has 2,500 registered investors and 13,000 startups, Mr. Ravikant told HuffPo. To recap: startups list their vitals and how much they’re looking for on AngelList, with options for who can see the information. Investors can then “follow” startups and get a feed of updates from interesting, mostly pre-funding companies. AngelList says it has recorded more than 750 individual investments in an estimated 400 companies, a low number because many deals aren’t reported.
Mr. Cove is the newest “venture hacker” on AngelList’s nine-person team. He works out of Dogpatch Labs in Union Square, helping companies polish their pitches and guiding investors through the site. “It wasn’t actually a concerted thing to have people in New York,” he said. “It turns out to be advantageous because so much is happening in New York.”