Sometimes the deals are so interesting that the opportunity passes before VA Angels can invest, mainly due to the group’s lengthy due diligence process. This fund will mitigate the loss of these opportunities while enabling Angels to have a larger stake in promising deals. Beyond the criteria mentioned above, the VA Angels Fund will only invest if the following is in place:
- Another investment partner is on board
- The opportunity is willing to accept a Board member or mentor from VA Angels
- The opportunity is focused on returns to investors as opposed to a lifetime opportunity for the founders
- A management team is in place or the fund capital will enable the hiring of an experienced team
VA Angels Diversified PE Fund I L.P. will invest on the following criteria
- 5% of the fund will be placed in ten opportunities
- 35% will be held back for follow on investing in the best opportunities in Fund I
- 10% (up to 3m) will be placed in a Venture Capital opportunity with 500 Startups, a leading Consumer Internet VC in Silicon Valley. If the fund closes on 6m, then placements of 500k will be made into two funds including Disruptive Ventures in Washington, D.C.
- Management fees (including all fund expenses) will be capped at 3%, with the Fund Manager taking 20% of the profits. R Stewart Thompson will be the Fund Manager, and will be working with an advisory board of VA members. Profit is the amount remaining after 100% of the capital has been returned to the Limited Partners
Once the capital has been placed in ten companies, VA Angels Fund II will commence. However, the life of VA Angels Diversified PE Fund I L.P. is expected to be 5-9 years. Investors should not expect a return prior to that time frame. Also, these are highly speculative investments. Individuals investing in VA Angels Diversified PE Fund I L.P. should only invest capital they can lose or afford to be without.
An example of deals that VA Angels Fund would have looked at in 2013-2014:
- Granify (Edmonton) VC Bridge Round
- Innovative Trauma Care (Edmonton) A Round
- Mover (Edmonton) Co-Investment with Yaletown Ventures
- Fitz Wrap (Idaho) co invest with 3 angel groups
- Kidomo (Winnipeg) lead earliest sales round in US
Examples of Angel Funds
Many regions in North America have “sidecar” Angel Funds, the most successful being Tech Coast Angels in Los Angeles, and even Montana Angels Frontier Fund I, which invested in 18 deals and had liquidity in three of them. All have suggested that it has improved the quality of opportunities they see.
Want to Participate?
If you might be interested in participating in VA Angels Diversified PE Fund I L.P., please email Randy Thompson at email@example.com to get the Powerpoint, Offering Memorandum, Expression of Interest and/or Subscription Agreement.
Should you sign an EOI, you will be asked your level of interest from a capital perspective, and please note that this will be followed with a subscription agreement should the EOIs match the funds minimum trigger amount – $500k. Ideally the fund will be between $3-6m allowing for placements between $100k and $200k. The minimum unit size is $12,500.