David Rose’s AngelSoft Launches an Investor/Startup Matchmaker, But Can It Compete With AngelList?

david s rose3 David Roses AngelSoft Launches an Investor/Startup Matchmaker, But Can It Compete With AngelList?

Mr. Rose

Apparently you don’t need to be a startup to attempt a pivot. Back in March, Betabeat told you about mounting exasperation among local entrepreneurs toward New York Angels, the dotcom legacy investing group (circa 1997) run by its venerable chairman David S. Rose. At the time, Mark Birch, an independent New York angel investor, told us, “The NY Angels process is broken, because their model has stayed the same, while the environment has changed.”


Now, it seems, Mr. Rose is trying to adapt to these modern times through AngelSoft, the New York company he founded in 2004 to make software for investors to help them manage deal flow and collaborate with investors.

As Bloomberg reports, AngelSoft is launching an online marketplace to hookup potential investors with the right  to entrepreneurs and hoping “financial matchmaking” ensues. Along with the pivot, AngelSoft will change its name to Gust. See, thinking like a startup already.

Bloomberg says the matchmaking function is available to AngelSoft’s 150 VC funds and 35,000 angel investors, although it doesn’t specify how many of them are actively using the software. The idea is that investors will use the software to seek out new opportunities, track portfolios, and weed through requests. Gust will also have features for startups to privately post their progress and manage relationships with investors.

It’s still debateable whether investors and startups will bite, especially considering competition from platforms like AngelList, more closely associated with the current funding landscape and without the cumbersome legacy associations. AngelList founder Naval Ravikant told Bloomberg that 12,000 startups have applied since he launched in February, 2010, including 68 just yesterday. But perhaps the better question might be whether a standardized online platform can compete with the proliferating stream of hackathons, incubators, and accelerators that help expose investors to startups and vice versa. At least according to Compete’s numbers, traffic for AngelList appears to be down significantly from last July.