Super angel (or "super-angel") was a term used in the early 2010s to describe
venture capital
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to start-up company, startups, early-stage, and emerging companies that have been deemed to have high growth poten ...
investors who had once been
angel investors and subsequently raised small venture capital funds.
Super angels share some characteristics of both
angel investors and
venture capitalists
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which hav ...
. According to ''
Fast Company
''Fast Company'' is a monthly American business magazine published in print and online that focuses on technology, business, and design. It publishes six print issues per year.
History
''Fast Company'' was launched in November 1995 by Alan We ...
,'' super angels "raise funds like venture capitalists but invest early like angels and in sums between the two, on average from $250,000 to $500,000."
Unlike traditional angel investors, they are typically professionals for whom investing is their primary occupation.
Features
Some common features of super angels include:
* Creating a professionally managed
investment fund
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages in ...
* Serial investing (investing in numerous startup companies)
* Investing at a
seed round
Seed money, sometimes known as seed funding or seed capital, is a form of securities offering in which an investor invests capital in a startup company in exchange for an equity stake or convertible note stake in the company. The term ''seed'' ...
in startup companies
*
Funding round
A securities offering (or funding round or investment round) is a discrete round of investment, by which a business or other enterprise raises money to fund operations, expansion, a capital project, an acquisition, or some other business purpose ...
s in the (approximate) range of $50,000 to several million dollars, larger than typical "friends and family" rounds but smaller than most
venture round
A venture round is a type of funding round used for venture capital financing, by which startup companies obtain investment, generally from venture capitalists and other institutional investors. The availability of venture funding is among ...
s
* Taking an active role in
portfolio companies A portfolio company is a company or entity in which a venture capital firm, a startup studio, or a holding company invests. All companies currently backed by a private equity firm can be spoken of as the firm's portfolio.
A company may create ...
* Raising money from
general partners and other principals, without passive investors in the fund
* Fund principals who are experienced
entrepreneurs
Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values t ...
* Avoid joining boards as a long-term investor.
* Close investments in several weeks, considerably faster than venture funds.
List of investors described as super angels
References
External links
Superangels VC
{{Private equity and venture capital
Private equity
Venture capital
*Main