Showing posts with label Beta Fund. Show all posts
Showing posts with label Beta Fund. Show all posts

Wednesday, June 12, 2013

Six New England Angel Groups Join with the State of MA in a $2.15M Investment in Content Raven

 Local angel groups including Launchpad Venture Group,  Hub Angels, Sidecar Angels, and  Beta Fund, along with the eCoast Angels of NH and Angel Investor Forum of Connecticut,  joined  the state  of  MA  in syndicating  a  $2.15M series A round for Content Raven of Marlborough, MA.The round was led by MassVentures and included the first ever investment from Commonwealth Fund III, a partnership fund with MassDevelopment managed by MassVentures.

 “The partnership between MassVentures and MassDevelopment has allowed us to meet our goal to support cutting-edge companies to grow and create jobs in Massachusetts,” said MassDevelopment President and CEO Marty Jones. “We look forward to a continued partnership with MassVentures and the broader investment community to support innovation in the Commonwealth.”

“It’s an exciting time to be part of the vibrant tech economy here in Massachusetts. MassVentures committed to us early and with its help and support we orchestrated a successful fund-raising round with regional angel groups,” said Content Raven CEO Ron Matros. “We can now focus on growing our product offerings and broadening our position in the market.”

 The Commonwealth III Fund is expected to invest in four to seven companies that are in the emerging market segments, started by first-time entrepreneurs or moving from seed to Series A financing. “With our new investments and focus, MassVentures is well-positioned to lead and participate in investments alongside angels and venture capital firms that bring industry expertise, a track record of success, and a shared commitment to follow-on funding,” said Jerry Bird, President of MassVentures, at the fund announcement last year. “We look forward to working with local entrepreneurs, and partnering with the angel and venture communities to support innovation in the Commonwealth.”

About Content Raven
Content Raven was founded in July 2011 by Vasu Ram, and had previously been self-funded. From the company: “Content Raven empowers enterprises of all sizes to control intellectual property and other valuable content as it is shared externally. The company provides content distribution and control through the cloud, with usage analytics, to mobile and other devices focused on rich media. Content Raven's end-to-end content control and analytics solution enables users to securely and easily share and track rich media, video, and other critical documents without risk of loss or abuse. Easy to use, with no software installation required, Content Raven is the first and only cloud-based content control solution that supports multiple devices, including mobile, and any type of content format. Companies around the world, including EMC, Gryphon Networks, and Certified Home Care use Content Raven. Content Raven is headquartered in Marlborough, MA."

Vasu Ram

Tuesday, November 20, 2012

Angel Returns Exceed VCs; Small Funds in the Angel Space Do Best; Band of Angels Reports IRR of 54%

Like us, John Frankel collects research on Angel and VC returns. He is particularly bullish on small-cap VC funds investing in the angel space, of which we have a couple of new entries founded by local angels: SideCar Angels by Rick Lucash and Jeff Stoler, and  Beta Fund by Dan Von Kohorn and Norm Meisner. 
“I finally have had the time to collate the research we have found, and am happy to share it. This post is quite technical, but the bottom line is simple: angel-stage funds outperform,” says John Frankel  founder and partner of  ff Venture Capital, writing in TechCrunch. His conclusions:

Venture capital funds, in aggregate, managed an anemic 4.41 percent end-to-end pooled return over the last 10 years. "Despite the risk and illiquidity of the asset class, they haven’t outperformed public markets."

“Angel groups, on the other hand, have done exceptionally well,” he says. Every large angel return study has mean angel IRRs ranging from 18 percent to 38 percent. Detailed exit analysis has revealed that angels have robust rates of “home run” (5x or more) investments, while maintaining a decisively lower level of risk.

Frankel argues that “smaller funds, focused on the angel space, with deep resources for due diligence and an ability to help their companies get to the next level, should outperform.”  Click here to access Frankel’s excellent tables, diagram,  and references, as well as to view his full conclusions.

Band of Angels
We first met Ian Sobieski, Cordinator of the Band, roughly a decade ago at planning meetings leading to the formation of the Angel Capital Assn.  From the web site:

 The Band of Angels is Silicon Valley's oldest seed funding organization. We are a formal group of more than 130 former and current high tech executives who are interested in investing their time and money into new, cutting edge, startup companies.” 

“The Band has invested more than $208M into 240+ companies since 1994. Of these 54 have been acquired and 9 have gone public on the Nasdaq. The cumulative IRR for all band investments since inception, including the losses suffered through the bust, is a positive 54%.”   

New Funds

SideCar focuses on filling out investment rounds that are syndicated by angel groups and microVCs.  As you know, most angel group rounds in the Boston area have more than one group participate,” says Rick Lucash. “Our goal is not to compete with established groups, but to increase deal flow and assist angel groups and companies by bringing additional money to the table.”

According to Norman Meisner, the Beta Fund intends to raise $5 million. The fund will focus primarily on emerging high-tech and bio-tech companies. “We are a small fund for small companies.  We invest early, typically at the angel financing stage, prior to typical venture capital financing, and in collaboration with other angel funds and groups. We see this as the time when value grows fastest, capital can have the most impact, and good judgment and execution can make the biggest difference.”

Who’s Next? Rumors abound that other small funds are on the way.