So to sum up, Rolling Funds have some attractive new features, like the public fundraising and the flexibility on subscribing and when you invest. But they are fundamentally not that different from what VentureSouth (and other angel groups) have offered for years....
Next, let’s consider some of the challenges and concerns with Rolling Funds, and see how they compare to angel groups. General solicitation: Rolling Funds are publicly solicited, which comes with some implications. The first is that an investor must prove he or she is...
Almost all comparisons of Rolling Funds compare them to traditional venture capital funds; we haven’t found anything that compares Rolling Funds to angel groups. That is odd, because there are a lot of similarities. First, let’s look at the positives of Rolling Funds...
First, the public solicitation is unusual; not new exactly, because there are dozens of funds (including the first VentureSouth Angel Fund) that raised capital publicly under Rule 506(c) (see our article here), but still somewhat unusual. Second, the “rolling model”...
We’ll start with a brief overview of Rolling Funds, in case you haven’t been following their development. (If you have, feel free to skip!) In RollingSouth, an investor commits an amount (say $5,000) per quarter for a specific number of quarters (say 4), and funds...
Last week, VentureSouth launched our first Rolling Fund – RollingSouth. (Are you signed up yet?) AngelList launched “Rolling Venture Funds” last year, and they have been a topic of lively debate since. Much digital ink has been spilled extolling their virtues and how...