Few angel investment funds in the Southeast help launch technology companies, according to Greenville-based VentureSouth. Even fewer are rolling funds open to public investors.
The Upstate angel investment group, now boasting more than 50 active portfolio companies from across the country, knew it was doing something unique when the organization unveiled Rolling South in late September.
“Rolling funds are a new way to make angel investments through a publicly-accessible subscription fund,” Paul Clark, managing director of VentureSouth, said in a news release. “We are excited to be bringing this innovative model of angel investing to the Southeast and expanding the population that can join VentureSouth’s mission to make money, have fun, do good.”
Unlike traditional angel funds, which tend to rely only on investment group members, anyone can invest in RollingSouth through the Venture South-affiliated site AngelList. Fees for investors include a 1% management fee and 15% carried interest.
RollingSouth will invest alongside VentureSouth in approximately four early-stage technology companies based in the Southeast each quarter. Startups of interest will have an expected 50% internal rate of return potential with a target fund return of more than 20% internal rate of return, according to VentureSouth.
In 2020, VentureSouth invested $9.2 million in 26 companies and, according to the release, is on pace for higher investment numbers by the end of 2021.