Super Angel Funds: A New Alternative Asset Class?


February 2, 2012

Very early-stage funds are scooping up allocations to venture capital as companies like StepStone, Cendana Capital and AMG National Trust Bank put their money into super-angel funds, reports the WSJ. While the big name VC investors, such as Accel and Khosla Ventures, continue raised large funds, super angel funds seem to be growing in appeal.  SoftTechVC, founded by Jeff Clavier, is the latest of this type to close a new fund.


Super angels typically make many smaller investments and also invest their own money. They have particularly come to the fore due to the high valuations being achieved in the Consumer Internet sector. The success of angels that backed the likes of Facebook Inc., and Zynga when traditional venture capitalists were holding back on such deals is fueling interest from institutional investors, writes the WSJ.


In an article in 2010, it listed several new angel funds that had closed fundraising, including Aydin Senkut, a former Google executive, raised a USD40 million super-angel fund with LPs that included Peter Thiel, a tech entrepreneur turned investor. Another ex-Googler, Chris Sacca, raised a USD8.5 million fund in June. Baseline Ventures closed two new micro VC funds for a total of USD100 million in the same year.


WSJ says angel funds raised nearly USD1.6 billion from around 80 institutions last year, citing data from Trusted Insight, a social network for institutional investors.

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