Can Women be Angel Investors?

Women make up the fastest growing community of angel investors and it’s changing the face of Angel Capital for the better.

Angel groups like Rockies Venture Club have been beating national averages for investing in women and minority led companies with 54% of our portfolio consisting of women and minority led companies vs a national average of just 14%.  But in order to balance the ecosystem it’s important not just to invest in women led companies, but to engage women angels who can help mentor startups and who can gain experience serving on the board of directors of some of the startups they invest in, thus paving the way for increasing the number of women on corporate boards at all levels.

Research shows that companies with women on boards out perform those with no or few women.  Companies wit

RVC Women Investor Network

h the highest percentages of women on their boards outperform their less diverse peers by 66%.  We have certainly seen these trends in our portfolio companies and are committed to developing further diversity in our community.

We have launched the RVC Women’s Investors Network  (WIN), led by Barbara Bauer.  The network has had several well-attended events that focus on angel education and making connections.  The group is based on four principles that play on women’s strengths:

Engagement: Programs that allow people to work together and share wisdom of crowds to make good decisions and great investments.

Give Back: WIN members have years of business experience and they want to be more than just a check – they like to mentor and coach up and coming companies.

Act From Knowledge: Women like to understand the landscape before they jump in and invest.  No more “fake it until you make it” – that can cost thousands for new angel investors!

Education: Classes, workshops and “get to know an angel” events provide deep venture capital knowledge to get WIN members up and going quickly and confidently.

If you’re interested in engaging with the group, volunteering, or just learning more, consider attending the WIN Luncheon at the Angel Capital Summit, Tuesday March 21 on the DU Campus.

Click HERE to register

If you’re interested in learning more about Angel Investing and Venture Capital, you should definitely attend the full Angel Capital Summit.  Tuesday-Wednesday March 21-22 in Denver.

Click HERE for more information and to sign up.

Want to learn more about Rockies Venture Club?  Check us out at www.rockiesventureclub.org

Impact Investing Night 2016

Impact Investing Night 2016: Keynote Speaker

Each Watson semester is an intensive fifteen week program in which scholars receive weekly mentorship and coaching sessions, free international legal support (through a partnership with Thomson Reuters), training in the hard skills and frameworks to take their ideas to the next level, and a community of peers that will last far beyond Watson. We aim to be the Olympic training ground for next generation change makers and you can expect the experience to be both challenging and fun. Below are four key elements of each semester. Speaker Eric Glustrom, Watson University’s founder, will be discussing how to measure the impact of an investment.

dBMEDx is a medical device company waging war against health-care acquired infections . We recently launched the BBS RevolutionTM, a next generation bladder scanner that battles both CAUTI and patient-to-patient transmission while delivering the quadruple aim of better outcomes, lower costs, more satisfied patients and more empowered providers. We are seeking growth capital to support our efforts to exit in 3 – 5 years. We have FDA clearance, CE mark, 5 patents and we’re generating revenue! Learn More Here

Intuitive Innovations delivers products and services for older adults that improve quality of life, independence and safety. Products combine technology and universal design that’s high tech on the inside, intuitive on the outside, and fashionable. Intuitive’s first product, the I Love You Band (I?U) comprises a watch, a PERS (personal emergency response system), and multimodal communication capabilities which collectively improve connectedness while providing peace of mind to loved ones. Learn More Here

Revolution Systems develops and sells the Revolution, a sorting line that is configurable, scale-able, self balancing and upgrade-able. Incumbent suppliers offer specially designed systems on a project basis that are elegant, but expensive and rigid. Revolution Systems’ focus on local communities and businesses, has resulted in an affordable system that can grow and adapt as the needs of the program change. Focus on smaller markets and creation of a flexible product allows us to achieve scale more easily than our competitors, reducing product cost to put recycling within reach of small communities and businesses. Learn More Here

Wave Solar is making an Impact with our Solar Steam Engine. A complete energy system for your home or small commercial building that provides electricity, heat, hot water and air conditioning, all from solar thermal panels plus natural gas. Given the back-up energy, the system will work in bad weather without storage, or work all night long as a back-up generator if the power grid is down. One percent of our systems will be installed for free in schools in third world countries. These systems will be reconfigured to purify dirty water into drinking water, provide a refridgation for a school, and run off garbage as a back-up energy source. Learn More Here

This event is available to be watched via livestream!

How does a co-investment Leveraged Venture Capital Fund Work?

To understand how a leveraged venture capital fund works, you first need to understand some basics of how a traditional VC fund operates.Leveraged venture capital fund

VC funds collect capital from Limited Partners who invest in the fund.  The fund then invests this capital, assists the companies in growing and working towards a liquidity event and then returns capital and profits to investors.  The fund typically charges a 2% management fee and 20% carried interest to compensate them for all the work.  This means that after an investor receives 100% of their investment back, they also get to keep 80% of the profits.

A leveraged fund works just like a regular fund, except that it works double hard to benefit Limited Partners by creating “syndicates” or groups of investors on a platform like AngelList which then charges a carried interest to those platform investors.  The AngelList carried interest is also 20% and the platform keeps 5% and the syndicate lead, who in this case is the venture capital fund, gets to keep the 15% carried interest which it then distributes to its Limited Partners.How venture capital works

So how does this work?

Imagine that the VC is going to invest in a company that is looking to raise $1 million.  The VC may invest $500,000 of its own money in the company and then act as syndicate lead on AngelList for the remaining $500,000.  If the company was selling 20% of its equity, then the VC would own 10% and the AngelList syndicate would own another 10%.  Now imagine that the company has a 3X exit, so the VC gets $1.5 million and $1.3 million is distributed to Limited Partners.  (LPs get their original $500,000 plus 80% of the $1 million profit)  The AngelList investors get $1.3 million too.  But now, the VC also received another $150,000 in carried interest from the AngelList syndicate which is also distributed to its LPs (less the 20% carried interest), so they receive an additional $120,000.  The LPs thus had only an 8% net carried interest on the deal thanks to the leverage strategy and they put an additional $120,000 in their pockets which they would not have seen from a traditional VC fund.

For a leverage fund to work it has to have all the elements of a great Venture Capital fund in the first place.  They have to have a lot of deal flow and have the ability to pick the best opportunities and coach them along the way to a successful liquidity event.  They need to have a solid portfolio of companies that would provide excellent profits to LPs without the leverage.  But if all these things are in place, and then a leverage component can be added, then Limited Partners can see a significant benefit.

To learn more about Rockies Venture Fund and leveraged VC fund investing, visit us at www.rockiesventurefund.com

 

Venture Capital for DummiesPeter Adams is Executive Director of the Rockies Venture Club, Managing Director of the Rockies Venture Fund and teaches in the Colorado State University MBA Program.  Peter is co-author of Venture Capital for Dummies, (John Wiley & Sons 2013) Available at Amazon, Barnes and Noble and your local book store.

 

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