Frequently Asked Questions

General

Why should I apply?

You are already helping other startups: with Powerset, you can offer them capital in addition to advice.

You will get better at running your own company from sitting on the other side of the table and learning from a peer group of elite founders in your cohort.

You will also learn how to become a world-class angel investor.

Who should apply?

You should be a founder in San Francisco, New York City, Boston, London, Tel Aviv or their surrounding areas—but we will consider exceptional founders in other cities. We are particularly interested in deeply-technical founders who have a history of helping other startups already.

Do I need investment experience?
Investment experience is not required, but you should have access to compelling early-stage founders. You will learn how to invest by actually making investments and receiving real-time feedback and coaching.
What is the time commitment?
Powerset is designed to be near-zero incremental time commitment since founders typically invest in companies they would be helping anyway. There is no pressure to invest—some founders go a year or more before making their first investment.
AngelList provides full-stack legal and back-office support, so you stay focused on your company. You will never need to lift a finger.
Is Powerset a scout program?

Powerset is not a scout program nor is it affiliated with any venture fund.

Powerset gives you your own independent fund, branded and controlled by you.

Powerset can complement scout programs, as you can also invite other investors—including VC firms—to invest in your fund.

Several founders in Powerset are scouting for Tier-1s.

Can I invest my own money in the fund?

If you are an accredited investor, we encourage you to invest a small amount in your fund to align incentives. This is not required, however, and can be decided after you join the program.

Are there any fees or costs I should know about?

There are no fees or costs associated with Powerset.

Your fund will bear standard administrative expenses (paid to AngelList), but this is waived on any capital you invest in the fund yourself.

Application

When is the application deadline?

Powerset Cohort 2 has been filled. We plan to open applications for Cohort 3 in Q3 2024. Subscribe to be notified when applications open.

How many founders will be selected?
Approximately 5-10 founders will be selected for each cohort.
What is the process after I apply?

We will review your application and the most compelling candidates will be invited to interview.

Do I need to be an accredited investor?
You do not need to be an accredited investor to participate in Powerset.
If I am not selected, can I apply again?

We plan to open applications for Cohort 3 in Q3 2024. If you are not selected for Cohort 2, you can re-apply then.

Investing

How much capital do I receive?

Each founder starts with a $1M fund. If you make great investments, you can unlock an additional $15M+ to scale up in exceptional companies.

What do I earn on the fund?

You earn carried interest (i.e. “carry”), which means you earn a share of the fund’s profits. This is the same way VCs are compensated.

What kind of companies should I invest in?

Please see the investing guidelines.

How much control do I have over investments?

You control the fund and have authority over investments. Investments only require external approval in rare cases where you disclose a conflict of interest or the investment poses legal or tax challenges.

Can I take advisor shares in portfolio companies?

This should happen rarely since advisor shares present conflicts of interest and are generally not considered founder-friendly. If you do take advisor shares, best practice is to pledge these to your fund.

Program

What am I agreeing to by joining Powerset?

You agree to adhere to the investing guidelines. In addition, you agree to “no cherry-picking,” which means all of your venture investments should be done with Powerset while your fund still has capital.

What is the curriculum?

The Powerset team is available real-time to discuss potential investments and share pattern recognition, but there is no formal curriculum since angel investing is something that you only learn by doing it.

Will I meet the other founders in Powerset?

You will meet the founders in your cohort during the kickoff in California. We also host social events for founders in Powerset; attendance is always optional—we know you’re busy.

Will I learn what other founders invest in?
You will receive a confidential monthly digest with recent investments from your cohort. Everyone is covered under NDA.
Will my participation in Powerset be publicly disclosed?

Powerset may disclose participants from time to time. If you have an extenuating circumstance, please mention this in your application and we will consider making an exception.

Will my investments with Powerset be publicly disclosed?

Certain investments may be disclosed, but nothing will be attributed to you without permission. Investors in your fund and Powerset’s investors will be able to see your portfolio and are covered under NDA.

How will I know if I have qualified for follow-on funding?

The primary criteria is adhering to the investing guidelines and demonstrating good taste in founders and companies. We will discuss in more detail as you start making investments.

Apply to Powerset

Powerset Cohort 2 has been filled. We plan to open applications for Cohort 3 in Q3 2024. Subscribe for updates below to be notified when applications open.

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