Thread by @immad

1/ Back in Feb @naval pitched me AngelList Rolling Funds.

Initially I was skeptical, but over time I have realized that this opens up a new class of LPs and GPs.

We will see a rise of active founders like @shl and simultaneously running rolling funds.

2/ I have been investing for 4 yrs. I have invested in more than 150 companies, including 3 unicorns (Rappi, Airtable, Rippling) and have an IRR of 50%

I am v. busy with @BankMercury but love investing and supporting entrepreneurs, that's why I started Mercury in the first place

3/ Rolling funds make it so I don't have to spend 6+ months raising money and I can avoid time on back office work. I can do the thing I love, which is investing.

It also means LPs that wouldn't have access to the tech startup asset class can back me and be part of the upside.

4/ Scout funds have previously enabled operator angels, but suffer from:

a) Leaking info about startups back to series A VC running the fund
b) Investment comes from scout fund, rather than GP. It's confusing and weakens the GP brand.
c) Limits amount of capital you deploy.

5/ Most rolling funds like mine operate at the seed stage and will increase competition between seed VCs and rolling funds. This hopefully mean more ideas and more diverse entrepreneurs get funding.

I expect that branded series A VCs with bigger check sizes will not be affected.

6/ Over the next few years I can imagine an explosion in rolling funds run by active operators.

@BankMercury has more than 20 active founders that invested in our seed round and they have been some of the most helpful backers.

7/ If you want to learn more about rolling funds, I'm doing an event with @shl this Monday.

If you've got questions for Sahil, or you want to back my rolling fund, send me a dm.

eventbrite.com/e/roll-a-rolli…