Velvet targeting institutional diligence workflows
Alex Johnson, co-founder & CEO of Velvet, on vertical AI for venture capital
The real divide here is not software quality, it is customer type. AngelList built a powerful self serve stack around syndicates, rolling funds, and smaller managers, which made it a natural home for angels and emerging GPs. Institutional funds need something different, deeper diligence workflows, tighter data controls, and tools that fit existing CRMs, IC processes, and LP reporting, which is why moving upmarket has been harder than adding more features.
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AngelList won by turning syndicates and SPVs into a repeatable internet product. That model works especially well for leads who need LP access and admin automation, but it is less naturally built around large funds that already have investor relationships and more complex internal workflows.
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The adjacent market shows the same split. CartaX was built for issuer controlled liquidity programs, while marketplace players like Forge and EquityZen were more retail and broker oriented. In private markets, going institutional usually means changing the workflow and buyer set, not just repackaging the same product.
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Velvet is positioning around the daily work of deciding on deals. That means reading decks, data rooms, emails, cap tables, and CRM records, then helping write memos and surface co investors. The bet is that the system investors live in all day becomes the path into institutional liquidity later.
The market is heading toward a split where retail and emerging managers use lightweight syndication rails, while larger funds and LPs adopt systems that combine diligence, internal workflow, and controlled access to liquidity. The company that becomes the daily operating layer for institutional investors will be in the best position to move capital, not just administer it.