Private investors or “Angels” have been the backbone of many startups, including that very famous one by Mark Zuckerberg. A new company Gust aims to connect these startups to a pool of angel investors easily on cloud.
CEO and founder David S. Rose has had experiences on working with angel investors and being one himself. He is a well-known power broker in New York and Chairman Emeritus of New York Angels, a group of angel investors.
Rose created Gust out of an earlier effort called Angelsoft. Gust lets entrepreneurs start a new website where they can post “elevator pitch”videos and other information to entice the angels who have paid to gain full access of their platform.
Investors see more information by pressing the “request access” button. Only then can the investors see “the secret stuff” like business plan, financial details and a full presentation.
Gust is a vast network of 33 employees, 185,000 entrepreneurs and 35, 000 accredited investors. “About 85% of Angel groups are on Gust” said Rose and it is now the official platform of the Angel Capital Association of the U.S. and similar national federations in 15 other countries.
The startup companies use Gust for free. the company make profit by charging investor groups and venture funds who wish to use it. They pay $1000 a year for every administrator with access. Rose said more than 1,000 financing deals were closed since the site opened in 2011.
Rose plans to add premium services like background checks on startup CEOs, enhanced features to present their business and other features like competitive analyses. He also plans to add tools to help entrepreneurs and investor work together to close a deal.
Source: Crains New York