Charlotte Angel Fund has launched its third investment fund, starting with a capital infusion of $780,000, according to a U.S. Securities and Exchange Commission filing.
The new fund, with 17 initial investors, is expected to go up to $6 million. There is a $30,000 minimum for outside investors, according to the filing. Its first sale date is listed as March 31. The fund will be open through 2023, said Greg Brown, fund administrator.
Brown said this third fund is a continuation of what CAF is already doing. Its first fund accumulated $1.6 million in fund capital from 60 people. Fund II raised $2.7 million with about 90 investors, he said. That doesn't include add-on funding from CAF members. With that, the total is approximately $8 million, Brown said.
CAF, investing since 2014, generally focuses on early-stage, technology-driven companies across the Carolinas. It has invested in 27 companies between funds I and II, Brown said.
"It makes sense at a certain point to close off a fund to new members and open a new one," Brown said. "What I'm trying to do is build a broader base of willing early-stage investors in Charlotte. ... If someone raises their hand and says, 'I'd like to get engaged,' I want there to be somewhere to put them."
He said an investor's interest wanes if there is no immediate option for contributing capital.
CAF investors are usually local, but some outside investors with ties to Charlotte also participate. For context, it will generally award $100,000 to $250,000 investments to startups as part of a $500,000 to $2 million capital round, Brown said.
Some of CAF's investments have gone to Nufabrx, a Conover-based textiles startup; GuerillaRF, a wireless infrastructure provider in Greensboro; Skiptown, a Charlotte-based indoor/outdoor dog park and pet care service; Baebies, a pediatric testing company in Durham; and Lucid Drone Technologies, a spraying drone provider based here.
