VentureSouth, a startup investor based in South Carolina, has launched what it’s calling VentureSouth Triangle, a move intended to beef up its activity in the region.
But even without a Triangle group, the firm has funneled capital into 15 local companies, from Get Spiffy to Baebies.
So we asked Paul Clark, VentureSouth’s cofounder, what to expect with the new Triangle group.
VentureSouth Triangle represents a market expansion, he said – not a new footprint. There will be no VentureSouth office in Raleigh. But right now, the in-person meetings are happening with members in Charlotte and Greensboro. With the new VentureSouth Triangle, they can happen in Raleigh.
And that’s a big deal, because VentureSouth has bold plans in the region. Today, the firm has about 25 people participating in its funds from the Triangle, but Clark said the plan is to get that number “to 50 or more.”
He said VentureSouth offers a major value proposition to would-be angel investors.“We do our due diligence collectively,” he said. “The big advantage is, you have the brainpower of 400 people, looking at this, asking questions, seeing if it’s a good idea or not.”
And more investors in a given market means more of that due diligence could be focused locally, as many of its deals are sourced internally.
VentureSouth has what Clark refers to as a “diverse menu” when it comes to the companies it targets. “The common ingredient is the quality of the management teams,” he said.
A look at its portfolio shows several serial entrepreneurs in the mix, such as Scot Wingo. Wingo cofounded and led ChannelAdvisor, which went public through an IPO. And his newest startup, Get Spiffy, which offers on-demand car services such as car washes, is in the portfolio. As is Brian Handly’s Reveal Mobile. Prior to starting the marketing platform developer, he led Accipiter, which sold to Atlas in 2006.
Clark said the firm looks for companies “doing interesting things,” as well as those prime to give its members a return on their investment. Typically, it targets companies raising between $250,000 and $2 million for a 15 to 35 percent preferred equity stake. It’s specifically looking for firms that can generate a 50 percent annualized rate of return on investment over three to five years.