A sidecar fund is a pooled investment vehicle that makes investments by “riding alongside” another investor.
A pooled investment vehicle means an investor puts their money into a common pool with other people.
Riding alongside means the pool invests in conjunction with some other investor – an angel group, VC or PE fund, or some other investor.
And makes investments is self-explanatory: these funds invest in some kind of assets – in this case, early stage angel investments.
This is also a sidecar - but, like sidecars that invest alongside VC funds, or state pools of capital that invest alongside multiple angel groups, we aren’t exploring those in this primer.
How many sidecar funds are there? Try here. How do sidecars work? Try here. How to evaluate sidecar funds? Try here.