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ANGEL GROUPS AND SPVs

Assure Analytics Brief
May 2022

Angel groups play a key role in many early-stage startup communities. For some entrepreneurs, these groups provide the first source of outside capital. And for some startup investors, groups can provide a structured onramp to become more familiar with deal sourcing, due diligence, capital deployment, and follow-on mentoring and support.

But angel groups often have many members, many of whom prefer to write smaller checks. This can make it challenging for groups to not saturate startup cap tables with lots of small investors. To solve this, angel groups are increasingly turning towards SPVs to not only streamline the deal for the startup, but also make the ongoing administrative load easier to manage for the angels.

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Following Assure Analytics’ recent release of the first annual State of the SPV Report, we are now announcing the first in a series of briefs exploring how different segments of the SPV ecosystem leverage SPVs – the first edition takes a look at angel groups and is available for download here. While we know there is tremendous value in market benchmarks, we also know that different kinds of investors use SPVs differently.

The Angel Groups & SPVs Brief offers data-driven benchmarks and insights on the SPV activity of both U.S. and international angel groups. The findings are based on over 225 SPVs raised by 50 Angel Groups since 2015.

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  • Angel groups are rapidly embracing SPVs as a flexible, low-cost structure to support formation and management of startup investment deals.
  • SPVs help angels to bundle smaller checks, from more investors, into single positions in startups with streamlined administrative support around accounting, taxes, and distributions.
  • SPVs enable angel groups to reach more investors—and more entrepreneurs—with a tool that enables them to rapidly deploy capital and double down on winners.

DOWNLOAD THE ANGEL GROUPS AND SPVs BRIEF