For AngelList's syndicate program, should we prioritize attracting more lead investors or focus on improving deal quality for backers?

Introduction

The trade-off we're examining today is whether AngelList's syndicate program should prioritize attracting more lead investors or focus on improving deal quality for backers. This decision is crucial for the platform's growth and sustainability. I'll analyze this trade-off by considering the product ecosystem, key metrics, and potential experiments to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• Based on the current market conditions, I'm thinking deal flow might be a challenge. Could you share insights on the current deal volume and quality we're seeing?

Why it matters: Helps understand if we're dealing with a supply or demand issue Expected answer: Deal flow is steady but quality varies Impact on approach: Would influence whether to focus on lead attraction or deal curation

• Considering our revenue model, I assume we take a percentage of successful deals. Is this correct, and are there any other significant revenue streams for the syndicate program?

Why it matters: Clarifies how different strategies might impact our bottom line Expected answer: Confirmation of revenue model, possibly with additional details Impact on approach: Would help prioritize between volume and quality based on revenue impact

• Regarding user segments, are we seeing any particular trends in backer behavior or preferences that might inform this decision?

Why it matters: Helps tailor our approach to user needs and expectations Expected answer: Insights on backer engagement, investment patterns, or feedback Impact on approach: Would influence the balance between quantity and quality of deals

• From a technical perspective, do we have the infrastructure to support a significant increase in lead investors or to implement more sophisticated deal quality assessment?

Why it matters: Ensures our strategy aligns with our technical capabilities Expected answer: Overview of current system capabilities and potential limitations Impact on approach: Would help determine the feasibility and timeline of different strategies

• In terms of resources, what's our current capacity for onboarding new lead investors versus enhancing our deal quality assessment processes?

Why it matters: Helps understand the practical constraints on our options Expected answer: Insight into team bandwidth and any resource limitations Impact on approach: Would influence the speed and scale at which we can implement changes