The Buffalo Angels have spent through most of their second fund and are now considering the group’s future.
One option is to raise another fund from existing local investors – the money would be used to continue writing early checks to local startups.
But it’s not the only way to continue making a difference, executive director Jack McGowan said.
“We’re looking at the future and figuring out the next step,” McGowan said. “Is it another fund or is it a different model that gets more people involved?”
The Buffalo Angels are often associated with the Western New York Venture Association, which has been hosting meetings aimed at boosting local startup companies since the mid-'90s.
The Buffalo Angels' first dedicated fund raised $1.2 million and launched in 2014 and was among the early private-sector efforts to recognize the potential force of startup technology companies in Western New York. The second fund was hampered by the onset of the pandemic, closing at $970,000 in April 2020.
The group has invested in 18 companies, including hot local startups such as Circuit Clinical, PostProcess Technologies, CleanFiber, Ognomy, braidbabes and Patient Pattern.
McGowan said there is still money left for new entries into the portfolio but that the funds are almost fully constructed. What’s left will more likely be used for follow-on checks into existing portfolio companies.
The WNYVA, in the meantime, is likely to resume its popular networking/pitch meetings in a hybrid format in May.
“We’re looking for startups in the community that need funding,” McGowan said, “and we are always looking for new individuals who want to participate and be part of the angel investment scene in Western New York.”
