Thought: AngelList could allow any angel to create an incubator

Background hypothesis:

Naval has previously stated that the future of startup funding looks more like:

  • Get $50k to build a product
  • If traction is good, get $500k to scale further
  • If further traction is good, get $1.5mm to scale (this $1.5mm should last to profitability)


Scenario:

I'm an angel. I have experience building companies, I have some sense of what helps and what detracts. 

I start an AngelList incubator, and begin accepting applications of teams and (optionally) ideas.

I help teams refine (or generate) their ideas into basic testable MVPs.

All teams are funded with $50k. Some will then also receive $500k to scale further. Others will be encouraged to either start again from the $50k level and try a different MVP, or to join as a team member at one of the other companies. Not all companies are supposed to survive, and this model of the failed startups producing engineers to help support the thriving companies models the way nature works.

Important component: clarity that the $500k will be available to all teams who produce good results. Difficult part: what is a good result? Can traction be clearly defined with a binary yes/no? Unlikely.


Result:

Over time, we would begin to discover which investors actually give good advice.