Rolling Funds: How AngelList Revolutionized Startup Investing

In 2020, AngelList launched Rolling Funds and changed startup investing forever. Within 24 months, 400+ operators launched funds, deploying over $500M into early-stage startups.

Unlike traditional venture funds that raise $50M-$500M every 3-4 years, rolling funds accept new capital quarterly. This means operators can start small, prove their thesis, and scale organically.

What Is a Rolling Fund?

A rolling fund is a venture capital fund that accepts new subscriptions every quarter instead of raising a single large pool of capital upfront. Investors commit to quarterly investments (typically $1K-$50K per quarter), and the fund manager deploys capital continuously into startups.

How Rolling Funds Work

Component	Traditional VC Fund	Rolling Fund
Fundraising	One-time, 12-18 months	Continuous, quarterly
Min Investment	$250K-$5M	$1K-$50K per quarter
Investor Type	Institutions, family offices	Individuals, operators
Fund Size	$50M-$500M	$1M-$50M (scalable)
Deployment	3-4 year deployment	Continuous
Management Fee	2% annually	2% annually
Carry	20-30%	20% standard

The Rolling Fund Structure

Quarterly Subscription Model:

• Quarter 1: Raise $500K, invest in 5 companies
• Quarter 2: Raise $750K (new + returning), invest in 7 companies
• Quarter 3: Raise $1M, invest in 10 companies
• Quarter 4: Raise $1.5M, invest in 15 companies

Key Innovation: Each quarter is a separate vintage, allowing investors to choose entry points.

Why Rolling Funds Exploded in Popularity

For Fund Managers (Operators)

1. Start Small, Scale Fast

• Launch with $250K-$500K
• No need for institutional anchor investors
• Prove track record before scaling

2. Continuous Deployment

• Deploy capital as you raise it
• No pressure to deploy $50M in 3 years
• Match investment pace to deal flow

3. Lower Barriers

• $10K-$50K to launch (vs. $500K+ for traditional fund)
• AngelList handles back office
• 40% lower operational costs

Real Example: Operator Profile: Former VP of Product at successful SaaS startup

• Launch: $300K in Q1 2021
• Q2 2021: $500K raised
• Q4 2021: $1.2M raised
• 2022: $3M total under management
• Portfolio: 35 companies, 2 exits, 8 markups

For Investors (LPs)

1. Lower Minimums

• Invest $1K-$50K per quarter
• Diversify across 20+ startups per year
• Accessible to non-accredited investors (via SPVs)

2. Portfolio Approach

• Automatic diversification
• Professional curation
• Exposure to 40-60 companies over 2 years

3. Flexibility

• Adjust commitment quarterly
• Pause or increase anytime
• Different vintages = different entry points

Top Rolling Fund Operators

Category 1: Exited Founders

1. Sahil Lavingia (Gumroad)

• Fund: SHL Capital
• Focus: Creator economy, no-code tools
• AUM: $15M+ across 5 vintages
• Notable Investments: Stir, Beacons, Graphy
• Strategy: Invest in tools that help creators monetize

2. Julian Shapiro (Demand Curve)

• Fund: Hyperfund
• Focus: B2B SaaS, growth tools
• AUM: $8M+ across 4 vintages
• Notable Investments: Copy.ai, Jasper, Loom (early)
• Strategy: Technical founders solving growth problems

3. Balaji Srinivasan (Former CTO, Coinbase)

• Fund: Network State Capital
• Focus: Crypto, decentralized tech
• AUM: $20M+ across 6 vintages
• Notable Investments: Various crypto protocols
• Strategy: Network state thesis investments

Category 2: Tech Operators

4. Brianne Kimmel (Worklife Ventures)

• Background: Former SaaS investor at Zendesk
• Focus: Future of work, productivity tools
• AUM: $12M+ across 4 vintages
• Notable Investments: Deel, Hopin, Tandem
• Track Record: 3 unicorns in portfolio

5. Jack Altman (Lattice)

• Background: CEO of Lattice (HR software)
• Focus: People tech, HR software
• AUM: $10M+ across 3 vintages
• Notable Investments: Pave, ChartHop, 15Five
• Strategy: Category expertise advantage

6. Lenny Rachitsky (Former Airbnb)

• Background: Product lead at Airbnb
• Focus: Marketplaces, consumer tech
• AUM: $15M+ across 5 vintages
• Notable Investments: Faire, Whatnot, Maven
• Strategy: Product-driven marketplaces

Category 3: Specialized Operators

7. Delian Asparouhov (Vanta)

• Focus: Security, compliance, dev tools
• AUM: $6M+ across 3 vintages
• Notable Investments: Warp, Superhuman (early)
• Strategy: Technical infrastructure

8. Sriram Krishnan (Former Twitter, Facebook)

• Focus: Consumer social, crypto
• AUM: $8M+ across 4 vintages
• Notable Investments: Farcaster, various DeFi
• Strategy: Network effects and crypto

Rolling Fund Economics

Fee Structure Comparison

Component	Rolling Fund	Traditional VC	Angel Investing
Management Fee	2% annually	2-2.5% annually	N/A
Carried Interest	20%	20-30%	N/A
Platform Fee	0.5-1% (AngelList)	N/A	N/A
Setup Costs	$10K-$50K	$500K+	Minimal
Annual Admin	Included	$200K+	Minimal

Sample Rolling Fund Returns

Conservative Scenario (10x fund):

• $5M total raised over 5 quarters
• 50 companies invested ($100K average)
• 5 exits at average 20x return
• 15 companies write-offs
• 30 companies still active

Returns Calculation:

• Gross returns: $100M (20x on $5M winners)
• Minus 20% carry: $80M to LPs
• LP multiple: 16x over 7 years
• IRR: ~45%

AngelList Rolling Fund Data (2022 Report)

Metric	Rolling Funds	Industry Average
Companies per Fund	25-40	15-25
Average Check Size	$50K-$150K	$500K-$2M
Time to First Close	2-4 weeks	12-18 months
Portfolio Markup Rate	35%	25%
Follow-on Rate	60%	50%

How to Launch a Rolling Fund

Step-by-Step Guide

Phase 1: Preparation (4-6 weeks)

Week 1-2: Define Your Thesis

• Identify your edge/expertise
• Define target sector/stage
• Articulate investment criteria
• Create preliminary portfolio construction

Example Theses:

• "B2B SaaS for construction industry (my background)"
• "Technical infrastructure for AI/ML"
• "Vertical SaaS in overlooked industries"

Week 3-4: Build Your Track Record

• Document previous angel investments
• List advisory roles
• Compile industry expertise proof
• Create deal flow pipeline

Week 5-6: Legal Setup

• Engage fund counsel (recommended: AngelList default)
• Create PPM (Private Placement Memorandum)
• Set up fund structure (AngelList handles this)
• Establish banking and admin

Phase 2: Launch (2-4 weeks)

Week 1: Create Marketing Materials

• Write fund thesis/strategy document
• Create investor presentation
• Build personal brand content
• Set up CRM for investor management

Week 2-3: Initial Outreach

• Soft pitch to 20-30 warm contacts
• Gather feedback on terms
• Refine messaging based on response
• Identify first close targets ($250K-$500K)

Week 4: Public Launch

• Announce on social media
• Publish announcement post
• Reach out to angel networks
• Begin weekly investor updates

Phase 3: First Quarter (12 weeks)

Weeks 1-4: Capital Raising

• Target: $250K-$500K
• 5-10 LPs committing $25K-$100K each
• Mix of operators, founders, tech executives

Weeks 5-8: Deal Sourcing

• 50+ pitch decks reviewed
• 10-15 founder meetings
• 3-5 companies selected
• Due diligence process

Weeks 9-12: Deployment

• Wire transfers completed
• Legal docs signed
• Portfolio announced to LPs
• First quarterly report

Rolling Fund Terms Template

Component	Standard Terms	Negotiable Range
Quarterly Minimum	$1,000	$500-$5,000
Quarterly Maximum	$50,000	$10K-$100K
Management Fee	2% annually	1.5-2.5%
Carried Interest	20%	15-25%
Hurdle Rate	None	0-8%
Term	Perpetual (quarterly)	2-4 year commitment
Platform Fee	0.5% (AngelList)	N/A

LP Perspective: Investing in Rolling Funds

Why Invest in Rolling Funds?

1. Professional Curation

• Operators with domain expertise
• Proprietary deal flow
• Professional due diligence

2. Diversification

• 20-40 companies per year
• Exposure to uncorrelated asset class
• Different sectors and stages

3. Learning Opportunity

• See deals the operator sees
• Monthly/quarterly updates
• Understand venture decision-making

Rolling Fund Due Diligence Checklist

Operator Assessment:

• Track record of previous investments
• Industry expertise and network
• Time commitment (full-time vs. side hustle)
• Reputation and references
• Unique access or deal flow

Fund Structure:

• Fee structure (management fee + carry)
• Investment period and term
• Reporting frequency and detail
• Liquidity terms
• Platform reliability (AngelList)

Thesis Evaluation:

• Clarity of investment criteria
• Market size and timing
• Competitive differentiation
• Portfolio construction strategy
• Expected returns and timeline

Top Rolling Funds to Consider (2024)

Fund Manager	Focus Area	AUM	Track Record	Min Investment
Worklife (Brianne Kimmel)	Future of work	$12M+	3 unicorns	$10K/quarter
SHL Capital (Sahil Lavingia)	Creator economy	$15M+	Multiple markups	$5K/quarter
Hyper (Julian Shapiro)	Growth/AI tools	$8M+	Strong early returns	$5K/quarter
Afore Capital	Developer tools	$10M+	2 exits	$10K/quarter
Long Journey	Fintech	$6M+	1 exit, 4 markups	$5K/quarter

Risks and Considerations

For Fund Managers

1. Continuous Fundraising Pressure

• Must raise every quarter
• No guaranteed capital
• Can be distracting from investing

2. Small Check Sizes

• $50K-$150K per company
• Hard to get allocation in competitive deals
• May need SPVs for larger investments

3. Admin Burden

• Monthly/quarterly reporting
• Investor communication
• Tax documents (K-1s)

For Investors (LPs)

1. Illiquidity

• 7-10 year horizon typical
• No secondary market
• Quarterly commitments lock up capital

2. J-Curve Effect

• Early write-offs common
• Returns back-end loaded
• May take 5+ years to see distributions

3. Manager Risk

• Part-time operators may underperform
• Less skin in the game than traditional VCs
• Platform risk (AngelList dependence)

Rolling Fund Success Metrics

Key Performance Indicators

For Fund Managers:

• Capital raised per quarter
• Number of investments
• Portfolio company follow-on rates
• Markups and valuations
• LP retention rate

For LPs:

• TVPI (Total Value to Paid In)
• DPI (Distributions to Paid In)
• IRR (Internal Rate of Return)
• Multiple on invested capital
• Loss ratio

Benchmark Returns

Early Results (2020-2022 vintage rolling funds):

• Average markup rate: 35% (vs. 25% industry)
• Follow-on rate: 60% (vs. 50% industry)
• TVPI: 1.4x average (early, 2-3 years in)
• Expected 3-5x return over fund life

Alternatives to Rolling Funds

Comparison with Other Angel Investing Vehicles

Vehicle	Min Investment	Diversification	Control	Costs	Best For
Rolling Fund	$1K/qtr	20-40 companies/yr	Low	Medium	Passive exposure
Traditional Angel	$5K-$25K	Self-directed	High	Low	Active investors
Angel Group	$5K-$10K	5-10 companies/yr	Medium	Medium	Learning/networking
Fund of Funds	$100K+	50+ companies	Low	High	Maximum diversification
Direct Syndicate	$1K+	Per deal	Medium	Low	Deal-specific interest

The Future of Rolling Funds

Trends and Predictions

1. Institutional Adoption

• Family offices allocating to top operators
• Fund of funds creating rolling fund products
• Corporate venture arms using structure

2. Sector Specialization

• Crypto/web3 rolling funds
• Climate tech specialists
• International rolling funds (Europe, Asia)

3. Platform Evolution

• More platforms beyond AngelList
• Automated LP onboarding
• Secondary market development

4. Regulatory Changes

• Potential SEC registration requirements
• Accredited investor definition changes
• International expansion challenges

Conclusion

Rolling funds democratized startup investing. They let operators leverage their expertise without raising $50M upfront. They let investors access professional venture investing with $1K instead of $250K.

The model isn't perfect—continuous fundraising is hard, check sizes are small, and the asset class remains risky and illiquid. But for the right operator with the right network, rolling funds offer a path to venture that didn't exist before.

If you're an operator with expertise and deal flow, a rolling fund lets you monetize your network while helping founders. If you're an investor seeking venture exposure, rolling funds offer professional curation at accessible minimums.

The venture capital industry is changing. Rolling funds are leading that change.

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Interested in launching a rolling fund? Download our Rolling Fund Launch Playbook with templates, pitch decks, and LP outreach scripts.

Looking to invest in rolling funds? Join our LP community to access vetted fund managers and exclusive investment opportunities.