Relationship of the Angel Network and the Venture Fund

Operating Models

The Angel Network is a 501c3 non-profit with an educational mission, namely educating impact entrepreneurs on fund raising, and angel Investors on impact investing. As part of the Angel Network’s entrepreneur educational activities, the Network routinely helps entrepreneurs learn where to seek funding outside of the Angel Network. The outside sources may include other angel networks, partner VC funds, and the SWAN Venture Fund.

The Angel Network does not recommend investments to its angel members. Rather, Angel Network members combine their observations about a company applicant into a document, and then each angel is provided the opportunity to make a personal investment decision.

The Venture Fund is a for-profit Limited Partnership. The Fund has an internal investment committee that evaluates investment opportunities, considering both companies who have received funding from the Network and companies who have not been funded by the Network.

Connections

  • The Angel Network and the Venture Fund have overlapping leadership, including Angel Network Board Directors who have an operational role at the Fund.
  • Some of the Limited Partners in the Venture Fund are also angel investors in the Angel Network.
  • The investment committee of the Venture Fund includes members and leadership of the Angel Network.
  • The Venture Fund and the Angel Network share a CRM (Customer Relationship Management) platform. Starting in 2023, the Fund will pay for the subscription of the platform and allows the Angel Network to use the platform at no cost.
  • The financial operations of the Venture Fund and the Angel Network are fully separate.
  • The Angel Network has used deal memos from partner organizations and shared deal memos with other partners. We use a standard information sharing agreement and do not charge a fee or pay for this information.
  • The Angel Network and the Venture Fund will also share diligence information when appropriate.

Relationship of the Angel Network and the Philanthropic Fund

Operating Models

The Philanthropic Fund is a multi-donor Donor Advised Fund (DAF)  which is managed and administered by an outside DAF administrator, Impact Assets. Donations to the Philanthropic Fund are made directly to Impact Assets. The Philanthropic Fund advises Impact Assets on desired investments and grants, and Impact Assets then makes the final decision on the grant or investment.

Connections

The Philanthropic Fund has an Advisory Committee which is a standing committee of the Angel Network Board of Directors.

The Philanthropic Fund Advisory committee advises Impact Assets to consider:

  • Making investments in specific startup companies who have been funded by individual angels of the Angel Network
  • Making charitable grants to identified non-profits, which can include the Angel Network