What is the goal of your funds? Our goal is to make money for our investors by pooling alumni resources together.
Why do alums invest? Reasons vary. Many believe this is the simplest and most intelligent way to add venture capital to their portfolio. Others value paying it forward to the next generation of entrepreneurial alums and fostering the school’s entrepreneurial ecosystem. Still other alums like the deal syndication and co-investment opportunities provided by being part of our network.
Who can invest in a Launch Angels alumni fund? Our funds are open to accredited alumni investors (as defined by the SEC), as well as faculty and others with a strong connection to the school. We accept investments of $25,000 – $500,000 in our annual funds and also offer co-investment opportunities with lower minimums. We do not recommend investment opportunities as being suitable for any specific individual. There are many risks and merits inherent to investing in a venture capital fund, which must be carefully evaluated with an advisor before the decision to invest is made.
What types of businesses do you invest in? To spread risk, we invest in diverse industries, geographies, and stages of development. Our first qualification is that a company must have a connection to the alma mater (typically, an alum on the management team or leading the investment round). Beyond that, we look for a top-tier lead investor with industry expertise (usually an institutional venture capital firm), demonstrated product/market fit, strong team, large market, clear differentiation and defensibility, attractive metrics, and growth.
What is the relationship of the school funds to Launch Angels? Launch Angels provides back office support the specific school funds. This includes admin, legal, accounting, marketing, technology, and scalable process support to every fund. By sharing these non-deal related costs and functions with sister funds, each school team can focus on doing great deals.
Are your funds a part of the colleges or universities? No. Each of our funds is a private initiative led by individuals who graduated from a particular school. While we love our schools and have many great relationships with administrators, faculty, and campus organizations, we are leading this charge ourselves. We believe the only way to intelligently invest in venture capital deals is via a private, for-profit entity that is ROI driven.
What is the fee structure? Our fee structure is the same as most venture capital funds, with a fee for the management and monitoring of the portfolio. Launch Angels also receive a portion of a fund’s profits.