Angels and Angel Groups
- Small business network & deal flow.
- Concentrated exposure.
- Limited resources available for due diligence, mentoring, monitoring.
- Do not have the negotiating leverage to set ideal valuations, terms & conditions.
- Notwithstanding these challenges, the vast majority of angel investing is undertaken by lone angels.
- Large business network & deal flow.
- In this model, angels work collaboratively, although investments are done individually and are therefore not generally diversified.
- Share deal flow, due diligence, negotiate as a group and employ combined capabilities and network to rapidly grow companies in which they have invested.
Angel Group + Sidecar Fund
- Sidecar fund investors benefit from the contacts, deal flow and resources of the Angel Group while mitigating investment risk by pursuing a diversified portfolio investment strategy.
- In the Sydney Angels Sidecar Fund, the Limited Partners have no tax liability due to the ESVCLP structure.