Band of Angels Investors Explained

Band of Angels is a network of angel investors based in Palo Alto, California, with a focus on funding early-stage technology companies.

The group has a long history, dating back to 1994, when it was founded by a group of entrepreneurs and investors who wanted to provide funding and mentorship to startups.

With a focus on technology, Band of Angels has invested in companies like Google, Facebook, and Uber, among others.

This experience and track record have earned the group a reputation as a reliable and knowledgeable source of funding for startups.

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Band of Angels has made 383 investments, with their latest investment being in Overplay Games as part of their Seed VC on May 10, 2023.

Band of Angels invested $3M in Overplay Games on May 10, 2023. This was a Seed VC investment, indicating that it was an early-stage investment in a startup.

Overplay Games was not the only company that Band of Angels invested in on May 10, 2023. They also invested in Champions Round as part of a Series A round, providing $7M in funding.

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Band of Angels has invested in companies such as QuSecure, which received $0.15M in funding as part of a Seed VC round on May 19, 2022.

Here's a breakdown of Band of Angels' investments:

Band of Angels has also invested in companies with undisclosed amounts, such as the company that received funding on December 24, 2021, and the company that received funding on December 17, 2021.

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Band of Angels has a rich fund history that dates back to the mid-1990s.

They have four funds in total, each with its own unique characteristics.

Band of Angels Acorn Fund LLC was closed on November 1, 2009, with a total amount of $5 million.

The fund type for Band of Angels Acorn Fund LLC is Early-Stage Venture Capital.

The sources for this information are listed as 1.

Here's a breakdown of the four funds:

Two of the funds, Band of Angels LLC and Band of Angels - Unspecified Fund, were closed on December 31, 1994.

The status of Band of Angels Fund LP is not publicly available, as it is listed as "Subscribe to see more".

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Angel investor groups are comprised of high net worth individuals who provide financial backing for small startups or entrepreneurs. These individuals are typically high net worth individuals who have the financial means to take on the risks associated with investing in startups.

The SEC allows only accredited investors to participate in angel investor groups. This is a crucial requirement for joining an angel investor group.

Joining a group instead of going it alone as an angel investor makes sense because you can share in due-diligence efforts as well as seed money. This can be a more efficient and effective way to invest in startups.

Angel investor groups are not for all investors because typically they invest in high-risk high-reward deals. This means that investors who are risk-averse may not be a good fit for angel investor groups.

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The Band of Angels is a unique group of investors who have been making a big impact in the startup world since 1994. They've invested over $186 million into more than 200 companies, with some of those investments returning a whopping 53% annualized internal rate of return (IRR).

One of the key things that sets the Band apart is their direct investment approach. Instead of pooling resources or voting, each member invests directly in deals. This approach has allowed them to make a significant number of investments, with 16-22 deals per year being the norm.

The Band is known for its diverse portfolio, which spans industries like biotech, semiconductor, and enterprise software. They also specialize in early-stage venture investing, which means they're often looking at companies that are just starting to take off.

Here's a breakdown of the Band's investment focus:

Securing funding from the Band is no easy feat, with around 50 deals submitting each month. To increase their chances, companies need to be prepared to present their deal to the Band, and even then, the odds of being funded are just 1/3.

Band of Angels has made 383 investments, with their latest one being in Overplay Games as part of their Seed VC on May 10, 2023. This investment was led by a group of co-investors, including Gaingels and Outlander VC.

Band of Angels is a collaborative operation that allows investors to draw on each other's experience and expertise. By working together, they can split the due diligence work and learn about more deals, making it easier to achieve a portfolio of at least 10 companies.

The group considers over 50 startups to back each month, choosing three to devote resources to while providing excellent mentoring and a community dedicated to building the Bay Area's strongest companies.

Here are some of the notable companies in Band of Angels' portfolio:

Band of Angels has an impressive track record of 55 portfolio exits. This number speaks for itself, showcasing the fund's ability to identify and nurture successful startups.

Their latest portfolio exit was OpsCruise on June 15, 2023, which was acquired by Virtana for an undisclosed valuation of $XXM. This exit demonstrates the fund's commitment to supporting innovative companies.

The types of exits Band of Angels has facilitated include acquisitions, corporate majority deals, and more. For example, Taulia was acquired by SAP in a corporate majority deal on January 27, 2022.

Here are some key statistics on Band of Angels' portfolio exits:

Angels are a type of investor who provide early funding to startups and small businesses. They often invest their own money and bring expertise and resources to help the companies grow.

Online investing syndicates, such as AngelList, offer an alternative to traditional investing groups. These syndicates allow high-net-worth individuals to work together on deals with no annual fees and no meetings.

Some syndicates let you contribute as little as $1,000 to a particular business venture, significantly lowering your exposure to risk. Typically, a lead investor will put up a substantial amount of the total investment, often around 20%, and let other syndicate members kick in smaller amounts.

A convenient directory of online and traditional groups across the U.S. can be found on the ACA website. Here are some popular angel investors in San Francisco:

Band of Angels is a group of current and former tech executives investing in cutting-edge startups and initiatives. They consider over 50 startups to back each month and choose three to devote resources to.

Joining a group of angel investors can have several advantages. For one, it allows you to split the considerable due diligence work required for any major investment. This can be a huge time-saver and also allows you to draw on each other's experience and expertise.

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