Introduction:
Jaclyn Johnson and Angeline Vuong, co-founders of Cherub, have developed a marketplace that connects angel investors with entrepreneurs. Cherub, based in Los Angeles, functions similarly to the dating app Raya, matching investors and founders based on their preferences. With Cherub, investors and entrepreneurs can express interest in each other, creating a mutual match. The platform utilizes dating app mechanics to streamline the process of connecting investors with startups.
Cherub’s Unique Approach:
Cherub stands out from other platforms such as AngelList, OurCrowd, and The Syndicate in several ways. While AngelList is more focused on B2B and tech companies, Cherub emphasizes consumer packaged goods (CPG) companies. Additionally, Cherub offers a more personal and tailored experience compared to transactional platforms like AngelList. The company hosts events like founder-funder mixers, creating opportunities for face-to-face interactions between investors and founders. This social approach to investing appeals to many investors who want to be actively involved in advising brands as well.
The Success of Cherub:
Cherub’s success can be attributed to its innovative approach and the value it provides to both investors and startups. The company started with a weekly newsletter that quickly gained 1,500 sign-ups through word-of-mouth alone. This initial success led to the development of an alpha product that featured 40 companies and allowed investors to request pitch decks. All 40 companies received requests for deck views, and half of those views resulted in introductions between investors and founders. Within three months, 20% of these introductions led to funding, collectively raising $1.1 million in capital. Notably, 40% of those funded deals involved new angel investors who had never invested before.
Cherub’s Membership Model:
Cherub operates on a membership model, charging startups while offering free access to investors. Startups can choose between a $480/year membership that includes listing their companies in the directory and analytics on deck views or a more exclusive $950/year Cherub Select membership that provides a more vetted process to showcase the company to investors. This tiered approach allows startups to choose the level of exposure and support they require.
Partnerships and Additional Features:
Cherub also assists founders in finding incubators and accelerators and has established partnerships with reputable incubators like Andreessen Horowitz, Dream Ventures, and New York Fashion Tech Lab. Moreover, Cherub provides investors with valuable data on companies, including updates on performance, funding status, and investment opportunities. This information equips investors with the necessary insights to make informed decisions.
Testimonials and Funding:
Cherub has received positive feedback from both investors and startups. Allen Orr, an angel investor, highlighted the platform’s personalized and social approach to investing, which sets it apart from other transactional platforms. Maggie Rose Macar, founder of the mental health support app Zant, credited Cherub for connecting her with an investor who wrote a $25,000 check into her company. Cherub itself has raised $1.25 million in funding from angel investors, including Alli Webb from Drybar and Morgan DeBaun from Blavity.
Conclusion:
Cherub’s innovative approach to angel investing has proven successful in connecting investors with startups. By incorporating elements of dating app mechanics and hosting events that facilitate face-to-face interactions, Cherub offers a more personalized and tailored experience for both investors and founders. Its emphasis on consumer packaged goods companies and partnerships with reputable incubators further enhance its appeal. With its growing user base and positive testimonials, Cherub is poised to continue transforming the angel investing landscape.