Early-stage funding through angel networks: Enabling conditions and strategies for success

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Date

2025-03

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University of New Brunswick

Abstract

This paper explores strategic questions for a proposed early-stage VC fund. The fund seeks to invest in a large number of early-stage firms in startup hubs across the world. It plans to do this by partnering with angel networks located in those geographies. The paper’s purpose is to explore key ‘conditions and strategies’ required for the success of such a fund. The paper develops hypotheses to answer four key questions: Who should the fund partner with among various forms of present angel groupings? How should the fund partner with the right angel grouping? Who should the fund invest with within those angel groupings in terms of the right characteristics of respective angel investors? How should the fund invest with such angel investors? The hypotheses developed in the paper pave the way for further primary research to test them, followed by the pilot launch of the fund.

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