Central Ohio women-focused angel fund makes its first investments

A Central Ohio angel investment fund focused on female founders has made its first investments, including two Columbus Inno Startups to Watch.

Accelerating Angels started investing this year after raising $1 million of a targeted $3 million fund, said Cindi Englefield, co-founder and chief investor relations manager. Another startup investment could close as early as next week, and the group is researching a handful more.

"We're gaining momentum," Englefield said. "It’s growing into a huge sustainable organization that’s going to last a long time in Columbus."

Startups with solely female ownership still represent about 2% of venture investment nationwide, according to the latest data from PitchBook, and another 23% when founding teams have men and women.

"Inequities are there," Englefield said. "Angels are important. We come in after friends and family money, and before they're bankable and VCs are ready to write checks."

Accelerating looks for startups that are at least 30% women-owned, are generating revenue, have a unique market opportunity – and do social good.

"Eighty percent of this is, can the founder do what she says she's going to do?" Englefield said. "We found all three founders very capable, and they have built good teams around them."

Accelerated's makeup, expert network and support services have startups holding space in rounds, even starting new rounds when they weren't raising, she said, "just to have us on the cap table."

Dasi Simulations is the latest investment by the group. The Dublin startup makes software for 3D planning of heart-valve replacement surgeries, aiming for better fit for replacement valves and fewer complications. The co-founders are CEO Teri Sirset and CTO Dr. Lakshmi Prasad Dasi.

The U.S. Food and Drug Administration approved the software as a medical device last year, and Medicare cleared the way for reimbursement this year.

"What really sealed the deal was when I interviewed the doctor," Englefield said. A surgeon at Ohio State University Wexner Medical Center told her he had used the software to analyze imaging from 48 patients that would otherwise be deemed inoperable, and was able to do a successful surgery in half.

Earlier this year, Accelerating invested in:

Both Dasi and SureImpact were Startups to Watch for 2023.

Chaney Jones doesn't shrink from the challenge of persuading nonprofits and government agencies to fit software in their budgets, Englefield said.

"She's on track to get the exit she wants and deserves, and she's determined to get it," she said. "She's got the social good and the business sense."

What's the growth plan for Accelerating Angels?

Accelerating plans to invest an average of $100,000 each in 20 or more companies. Nearly 270 applied for funding so far.

"We are determined to make sure there is some traction and a good solid exit plan," Englefield said.

Once this fund generates returns, the group would target a larger second fund making larger investments.

The Women's Small Business Accelerator created Accelerating Angels in 2022, and manages the fund for a fee. The aim was to fill the gap following the wind-down of X Squared Angels, which had formed in 2013. In contrast to Accelerating, that group never launched a formal fund, instead investing as individuals after founders pitched at meetings.

Individual members can invest in the new fund's deals in what's known as a "sidecar."

Accelerating is raising under a provision of the Jobs Act that allows some public discussion of fundraising, but the limited partners must be accredited by the U.S. Securities and Exchange Commission as high-wealth or high-income. The minimum investment is $25,000.

The group has created an "aspiring angel" program for young people to learn about venture investing. They can't actually invest unless SEC-accredited, but can shadow committee and advisory meetings.

Groupize is poised for an exit – usually acquisition or IPO – within three years, Englefield said. The founders traveled in person to pitch, saying they specifically wanted a female-focused investor.

"Coming out of the pandemic stronger than ever," Groupize integrates with SAP Concur and is adding other vendors to its business travel-planning platform including restaurants and golf courses.

The company had last raised $3.5 million in 2017, BostInno reported. According to a release, an existing investor made a follow-on investment for an undisclosed amount in 2019.

Groupize says it competes directly with Cvent, which is mainly for larger, less frequent meetings and charges by attendee. Based outside Washington, D.C., Cvent had an IPO in 2013, was acquired for $1.65 billion in 2016, went public again in 2021 and was acquired again last June for $4.6 billion, Washington Business Journal reported.