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Angels and Angel Groups

Individual Angel

  • 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.

Angel Group

  • 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.
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