Company
Angel Fund Investment
Angel Fund
Company
Angel Sidecar Fund Investment
VANTEC – Angel Fund Managing Team: Volunteer board composed of local Angel investors from VANTEC Angel Network and other local Angel groups Name of Fund: E-Fund (VANTEC Entrepreneurs (VCC) Fund Inc.) Angel Sidecar Fund Company
Website: www.e-fund.ca Fund Type: Angel fund
Restrictions: $10,000 minimum investment; must be Accredited Investor Fees: 0/20 – No fee; 20% carry-forward interest is shared among volunteers History: Now on E-Fund III, these are recent funds with a few reported exits on website This Angel fund is run by volunteer Angels (mainly from VANTEC) with no fixed fees. VANTEC members created this Angel fund in part to take advantage of the VCC tax credits available for British Columbia residents who invest in BC-eligible companies. This is a volunteer, team- based investment vehicle where the Angels who do the deal screening, due diligence and deal management all share in the 20% carry-forward performance incentive. “Carry-forward interest” is a VC term meaning that once the investors receive their money back, the fund manager will receive 20% of the profit before paying the remaining profits out to the unit holders. In E-Fund, each investment deal might have a different team of individuals driving the deal, so the people who share in the 20% carry-forward interest might vary from deal to deal. Angels buy units of the fund and the fund buys shares of the company. There are no fees aside from the 20% carry-forward interest. There are more than 70 different Angel investors in E-Funds I, II and III. Each fund cohort closes after 18–20 months, and when it reaches its minimum $500,000 capital raise per fund cohort. E-Fund makes investments from its pooled capital whose assets under management total approximately $1.6 million. The fund also encourages its investors/shareholders to co-invest alongside, which many of the Angels do. Thealzel Lee described the fund as a good way for beginning Angels to get involved and a low- cost way for more-experienced Angels to gain portfolio diversity and reduce risk. She pointed out, however, that E-Fund must make equity investments to get the 30% VCC tax credit and recommended that Angels also consider investing in a yield-based fund of some sort, such as the one run by TIMIA Capital, in order to further diversify their portfolios. Angel Side-Car Fund VC
Deal Syndication
How to Achieve Good Returns
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