VentureSouth forms new investment fund


VentureSouth has formed its latest “sidecar” investment fund, VentureSouth Angel Fund II.

VentureSouth, based in Greenville, is an early-stage investment firm that operates angel groups and funds in the Carolinas. The network includes 10 active angel groups and more than 200 investors who meet regularly to support early-stage Southeastern companies with capital and expertise.

VentureSouth recently launched its new VentureSouth Angel Fund II, which will begin investing this fall.

In venture capital investing, “sidebar” refers to an extra fund that invests alongside its main fund (like a motorbike sidecar).

In VentureSouth’s case, the Angel Fund II invests alongside the firm’s active angel group members who invest their own capital directly in angel investments. It’s like an “index fund” or a mutual fund as it invests in all companies the firm funds, said Paul Clark, VentureSouth’s managing director.

The new fund continues the investment strategy and methods of its predecessor, the Palmetto Angel Fund. The Palmetto Angel Fund was formed in 2014 as the first sidecar fund of committed capital designed to invest alongside the active angels in its groups in the Carolinas. It has invested its nearly $2 million of capital in 18 portfolio companies.

The VentureSouth Angel Fund II will continue the same investing strategy and methods, co-investing when 10 or more VentureSouth members invest at least $100,000 in a candidate company. The fund is designed to invest in 15-20 Southeast-based companies over the next two to three years, VentureSouth officials said.

xVentureSouth groups and funds have invested more than $17 million in 52 companies, according to the firm’s website. It has co-invested with more than 25 venture capital funds, angel groups, family offices and corporate investors.

Its portfolio companies have raised more than $250 million in funding.

In addition to Clark, the fund’s general partners are Charlie Banks, Matt Dunbar and Mac Lackey, who together run VentureSouth.

“Now that VentureSouth covers 10 cities across North and South Carolina, we look forward to expanding the Palmetto Angels Fund’s trailblazing path with this successor fund,” Banks said.

VentureSouth, launched in 2016, includes the VentureSouth Angel Fund II and Palmetto Angel 2014 Fund; Asheville Angels and VentureSouth Charlotte in North Carolina; and the eight angel groups and more than 200 members in Aiken, Anderson, Charleston, Columbia, Greenville, Hilton Head, Rock Hill and Spartanburg.

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