The Band’s 3rd side fund, called Acorn Fund, caters to scrappy entrepreneurs who need just a little bit of capital and have a clear path to a modest exit (<$20M). Most venture funds today require investing millions of dollars in startups which then must exit via IPO or major M&A events (>$100M).
VCs say there are four kinds of companies: features, products, companies, and industries; and that they only invest in the last two. At Acorn fund, we’ll for sure support industry builders but believe that entrepreneurs with simply a better mousetrap (ie features and products) are worth supporting! While by themselves these types of companies may never garner “billion dollar” exits they nevertheless improve society with their innovations and can be profitably supported by VCs with the right business model. Acorn Fund, and the Band of Angels, have such a model.
Entrepreneurs backed by Acorn and the Band of Angels receive:
*** As little as $100k, as much as $750k in capital
*** Help from our membership of former operating officers and hi tech founders
*** Special help with business development and negotiating an exit
*** The same scrappy, can do, roll up your sleeves interactions we are looking for in our entrepreneurs
Our goals are that, within 2-3 years, we help make our entrepreneurs between $5-$10M, and that our invested capital returns $5M or about 10x. As such, we want entrepreneurs who see the exit as their “pay-day” and want to run a scrappy, cash-conscious, lean but ambitious business. Ideally our entrepreneurs who have struggled to boot-strap their business but decided the benefit from a little bit of capital and some experienced advice, is worth the dilution.
So far we have made several investments in this fund and we’re actively looking for many more! If you find yourself thinking “this is exactly what I’m looking for” then we want to talk to you! We have a committed team of passionate and experienced investors who are looking to help seed the next wave of innovation. Please email Nicola Corzine at email@example.com if you would like to learn more and feel that the fit might be exactly what you’re looking for!