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Angels and Early-stage VC funds

The Boston Globe writes today about the local venture capital market and the impact of angel investors and organized angel groups.  As the recent numbers show, VC activity in New England is on the upswing in terms of dollars invested, but this is skewed by larger, later-stage investing.  It's still pretty challenging for early-stage companies, and particularly first-time entrepreneurs to raise venture capital dollars.  The angel groups have filled the gap here somewhat, but there is still a mismatch between the appetite of angel groups and the number of early-stage companies seeking funding.  As the Globe reports, the amount of angel funding has stayed steady, which indicates that they are fully deploying the dollars available even though there is a growing market opportunity.

One way that this gap gets filled is with smaller VC funds that are willing to fund early-stage companies.  As I have been advising some early stage start-ups, I have found that three newer funds in town have been receptive to early-stage companies.  If you are an entrepreneur with an idea in the IT sector, it's worth getting introduced to these firms.  In alphabetical order:

.406 Ventures

Dace Ventures

Kepha Partners

Check out their web sites to see the backgrounds of the partners and their areas of interest.


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