A Central Ohio angel-investing fund focused on startups founded by women has attracted so much interest that managers lifted a $1 million cap.
Accelerating Angels seeks to fill gaps left when Central Ohio's X Squared Angels wound down a few years ago, with a mix of returning and new investors, said Cindi Englefield, chief investor relations manager.
"We don't have to start from scratch, and we've learned a lot," Englefield said. "We took the cap off because there’s so much interest. ... We will raise and cap it where it naturally caps."
The Women's Small Business Accelerator identified the need and created the fund, which aims to start investing in women-owned businesses this summer. The accelerator, where Englefield is a board member, administers the fund for a management fee.
Securing professional management is one of the lessons learned from X Squared, a group of angel investors that formed in 2013. The group never launched a formal fund, instead investing as individuals after founders pitched at meetings. After founder Carol Clark left, organizing rotated among volunteers.
Ohio TechAngel Funds, once North America's largest early-stage investing group by membership, also has not raised another fund since the fifth in 2016. Some of those investors now are with Accelerating, Englefield said.
Accelerating Angels is not disclosing how much has been raised to date. The fund is raising under a provision of the Jobs Act that allows some public discussion of fundraising from investors that are accredited by the U.S. Securities and Exchange Commission as high-wealth or high-income. The minimum investment is $25,000.
Investable startups won't only be software or other technology companies. But they do have to have the potential to grow rapidly to a large size and become a candidate for acquisition or other investment return within three to seven years.
"It has to be a high growth business – one that we know can scale," said Mary McCarthy, accelerator CEO and angel fund COO. "Women do a lot of product-based business."
Accelerating Angels is both a fund and network of mentors – business leaders can become members to advise the entrepreneurs without investing. The group also would welcome venture capital firms looking for future prospects, Englefield said.
Founders will have access to the WSBA's business-building resources and training programs.
"They're not always ready for angel investing," she said. "If they're not willing to exit, the angel route is not right for them."