Nashville Capital Network announces launch of NCN Angel Fund I, LP.
Nashville, TN (January 11, 2008) – Nashville Capital Network Executive Director Sid Chambless announced today the launch of NCN Angel Fund I, LP. The $5.2 million fund will focus on investments in local early stage companies. The Angel Fund is the first of its kind in Tennessee and will build on the track record and success of Nashville Capital Network’s existing Angel Group. To date, NCN Angels have been responsible for investing over $10 million in 13 early stage companies.
With the recent news that several local venture firms are not raising new capital, the NCN Angel Fund helpsaddress the capital gap that exists when an entrepreneur has exhausted “friends and family” start-up financing but is not yet ready for institutional investment such as venture capital, private equity, and bank debt.
“The challenge for entrepreneurs is that there is no firm focused on investments in the $500k to $2 million range. This fund, operating in concert with the activities of Nashville Capital Network, will address that void in the capital markets” according to Tom Wylly, Chairman of NCN and an investor in the fund.
Angel investors are high net worth individuals who typically take an active role in the companies in which they invest. NCN Angel Fund I, LP includes many of the leading entrepreneurs and early stage investors in Nashville. These investors will serve as board members and mentors for the early stage entrepreneurs receiving financing. “The fund complements the mission of Nashville Capital Network by increasing the number of potential angels that can help advise and assist the early stage entrepreneurs” according to NCN Executive Director Sid Chambless. NCN will continue to work with start up companies to prepare them for the fund raising process, provide feedback on business plans and investor presentations, and connect companies with early stage investors in Nashville.
NCN Angel Fund will not focus on any particular sector, instead continuing the group’s practice of investing in various industries including health care, business services, technology, medical devices, software and media. According to Chambless, “We are only limited by the investment interests of the individuals in our group. Unlike a traditional venture capital firm that is limited by the expertise of the managing partners, we can leverage the experience of over 50 investors who will take active roles in the companies where investments are made.”
NCN Angel Fund will have an investment committee that oversees the investment process for the fund. The investment committee consists of experienced angel and early stage investors including Townes Duncan of Solidus Company, Crom Carmichael of Carmichael and Carmichael, Frank Gordon of Crofton Capital, Paul Wallace of Healthways, and Tom Noland of Vanderbilt University Medical Center.
Sid Chambless, currently the executive director for Nashville Capital Network, will serve as managing general partner of the fund.
About Nashville Capital Network:
Nashville Capital Network is a collaborative initiative of Vanderbilt University, Nashville Technology Council, Nashville Health Care Council, local investors, as well as local business and professional leaders. NCN strives to promote entrepreneurial education and economic growth by becoming the hub for early stage capital formation in middle Tennessee. NCN’s mission centers on the simultaneous development of two distinct initiatives:
EDUCATIONAL AND ENTREPRENEURIAL FOCUSED INITIATIVE: NCN helps entrepreneurs with business ventures that have the potential to attract institutional equity refine their business concepts and prepare for the fundraising process. As an extension of its initiative, NCN serves as an advocate for entrepreneurs and will assist in the fundraising process by matching promising ventures with experienced and knowledgeable Nashville-based investors.
INVESTOR INITIATIVE: To continue building a source of early stage capital by delivering value to investors via deal flow, investment analysis, and due diligence. NCN employs these resources to help develop investment opportunities often not available to individuals or informal investor groups.
For more information please contact Sid Chambless at phone (615) 322-9016 or write schambless@nashvillecapital.com |
