Second Order Impact of FG Angels

If you’ve been following along at home, you know that we recently created an AngelList Syndicate called FG Angels. Our goal is to make 50 investments through AngelList before the end of 2014. We’ll contribute $50k to each investment; our FG Angels Syndicate will contribute up to $450k.

Shortly after doing our first few investments, I got a really nice email from a member of Impact Angel Group, a Colorado-based angel group that organized an investment in the FG Angels syndicate. It shows a second order effect of what we are trying to accomplish with FG Angels. I thought it was worth sharing.

I just wanted to say thank you for all of your work in breaking through the red tape to put together FG Angels. I believe all of our committed members have completed their investments as individuals and we have made our first investment through the LLC we put together.

We really appreciate the time you spent to answer our questions and work through the details. I thought it might be helpful for you to see the positive impact you are making for our small group, which I’m sure can be multiplied a hundred times over. As you all know, herding angels and getting new angels to actually pull the trigger is not an easy task. FG Angels has helped us address all of our major angel-herding challenges through the following:

  1. FG Angels increased the amount of capital our group has committed since our official founding in 8/13 by 103% which will certainly help us with deal flow, member acquisition etc.
  2. 18 of our 37 angels pledged to participate and 14 are actually participating. Our members have a variety of different backgrounds and interests, so this is the largest participation rate for one deal that we’ve seen to date. 
  3. 15 of the 18 had never visited AngelList prior to researching FG Angels.
  4. 6 of the 18 who pledged and 4 of the 18 who participated are never-ever angels. 
  5. 7 of the 18 are making their first investment as Impact Angel Group members.
  6. 2 angels are considering creating their own AngelList syndicate as a result of their experience.
  7. We created an LLC of 145k to allow some of our newer angels to participate at smaller amounts. 1% of the carry will go to the Entrepreneur’s Foundation of Colorado. 1% of the carry will go back to us to help us support angel investing in Colorado.
  8. I learned an incredible amount about SEC regulations, crowdfunding and the logistics of AngelList.

 

  • http://www.EyeOnJewels.com/ Darius Vasefi

    This is great, hope other angel groups also pick up on the power of working with syndicates and at least trying new things.. (cc @techcoastangels).

  • Maxwell Troop

    Great post, Brad. The syndicate experience with FG Angels seems to be getting overwhelmingly positive feedback thus far. The evolution of VC syndication will be exciting to be a part of. Its great for a firm like Foundry Group to spearhead efforts allowing the smaller guys maximum exposure of deal flow and experience/education. I know your short term goal is 50 deals/$450k but do you have plans to continue FG Angels Syndicate beyond the end of 2014?

    • http://www.feld.com bfeld

      We haven’t decided about 2015 yet. But we are going to talk about it soon.

      • Maxwell Troop

        Awesome. Very excited to see this evolve.

  • EquityZen

    Ancillary benefit of syndicates for Angel Investors: the cost to learn from experience has gone down from $25K to $5k (or less).