To distill the concepts of the last post into a concrete example: consider a typical VentureSouth angel sidecar fund.
- It’s a Limited Partnership
- It’s “triggered” to invest when 10 or more VentureSouth members invest, in aggregate, $100,000 or more in an investment. Investments that attract fewer than 10 checks, or 19 x $5,000 checks, do not trigger the fund, so it does not invest.
- Its match is up to 1:1 of the amount invested by VentureSouth angel group members, up to a maximum investment of $250,000 per company.
- And the administrative oversight is provided by the VentureSouth central team (as the fund’s General Partner).