VentureSouth is pleased to announce that it has closed its fourth sidecar investment fund, VentureSouth Angel Fund IV, at its target size of $5 million.
Raised during the pandemic, the fund allows its investors to participate alongside VentureSouth’s nearly 400 members in a diversified portfolio of investments in promising early stage ventures in the Southeast. Fund IV continues the co-investment strategy of its three predecessor funds which have invested in more than 40 companies.
VentureSouth Managing Director, Charlie Banks, commented: “Despite the inherent risks of an early stage equity portfolio, angel investors have consistently generated attractive returns when they diversify their investments across a highly diligenced set of opportunities. However, building a portfolio is difficult to achieve alone, as it requires access to deal flow, investment expertise, portfolio monitoring and support – as well as administrative skill. The VentureSouth sidecar funds provide investors with efficient access to each of those capabilities, enhancing the probability of achieving attractive returns alongside one of the top 10 angel groups in North America.”
Fund IV has already invested in 13 portfolio companies since its inception last summer. These companies span South Carolina (6AM City in Greenville and Bosscat (Punchlist) in Charleston), North Carolina (Imagine.io (Live Furnish) in Winston-Salem and Coworks in Durham), and Tennessee (Iconic Moments (Pass It Down) in Chattanooga). The fund will likely add five to seven additional portfolio companies in the coming months as VentureSouth continues its pace of investment.
Banks further commented: “Our fourth sidecar fund continues our proven index fund approach to early stage investing. Raised during a challenging year, it proves the resilience of VentureSouth and the continuing desire of our members and fund investors to support the top entrepreneurs in the Southeast. We are looking forward to investing this capital and supporting these companies as they grow.”