Where We Find Investments
Our affiliated investment entity, Lateral Capital Management, LLC, is a member of 14 Angel, Accelerator and Industry groups across the U.S. Some of these have dedicated funds, like Seraph Group (Atlanta), Queen City Angels (Cincinnati) and Tamiami Angels (Naples). This means that Lateral Capital commits money to a General Partner or investment committee which invests at their discretion.
But we also belong to a number of Angel groups where very experienced volunteers manage investment processes which select companies in which to invest. We are members of Band of Angels (Palo Alto), Tech Coast Angels (Los Angeles), Golden Seeds (New York), Gopher Angels (Minneapolis) and Central Texas Angels (Austin). These groups collect membership fees to cover their expenses but leave to individual members the decision of whether to invest in specific companies. Lateral Capital has also made investments in incubators (like Lemnos Labs in San Francisco) and Accelerators (like Gener8tor in Milwaukee/Madison) with the idea that these firms will see investments we would never see on our own.
The benefits of investing in and with Angel groups include the following:.
- They offer insights into new investment areas. In return for our participation, we get to meet new entrepreneurs and see investment trends in segments where we may have interest, but no direct experience.
- We get insights into startups which may later look for Early Stage investment. –Many Angel groups make investments in startups, where we have no immediate interest. However, companies which succeed often come back for growth investments, when we are pleased to meet them.
- We get to meet investors in other regions.In addition, Lateral Capital meets new companies at industry events across the U.S. These are typically “pitch contests” where it is possible to hear from multiple companies looking for funding. These forums include the Angel Capital Association Annual Summit, South By Southwest, the annual BIO meeting (a major industry association), and the Southeast Bio (SEBIO) Investor & Partnering Forum annual meeting.Together, these groups provide Lateral Capital with introductions to about 1,500 companies per year. This is more than enough deal flow to meet our objective of making ten new company investments per year. As a result, we do not solicit proposals directly from interested companies.
The Gener8tor Accelerator process in Milwaukee and Madison produces a significant number of investable companies.