ACF Investors has launched a £30m Delta Fund offering equity or convertible loans to businesses already backed by angel investors.
The Delta Fund will provide up to 49 percent in investment rounds greater than £500,000.
Delta Fund investments will be made exclusively alongside at least three angel investors who are new to each portfolio company. This must include at least one lead angel investor with deep sector knowledge who has committed more than £70,000.
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The new fund has been launched partly to cater to bigger angel investors with sector experience of what they’re investing in, and who also want to be more involved.
Angel CoFund first told GrowthBusiness about its plans for a fund last year.
Tim Mills, managing partner at ACF Investors, said: “The Delta Fund is partly to counter the trend for early stage investment to have been drying up since the pandemic – a trend which will only continue.”
ACF Investors is the new name for the AngelCoFund, which over the past decade has deployed more than £40m in direct investment alongside £200m from other angels and investors. AngelCoFund has invested in 90 companies, including Gousto, Ebury, Form3 and Creo Medical. There have been a dozen exits to date.
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The idea behind the rebrand is have two distinct offerings – Angel CoFund and Delta Fund – and also leave the door open to future offerings.
Like ACF Investors’ original fund the Angel CoFund, the Delta Fund is sector agnostic although it does lean towards fintech, life sciences and digital technology.
Businesses approaching Delta Fund for investment need to be generating revenues and commercial sales.
The Angel CoFund will continue to invest alongside angel syndicates in funding rounds greater than £200,000.
Mills said: “Investment alongside angel syndicates has been the core of our investment model since we were established nearly a decade ago. Over the past 10 years we have seen the UK angel investment ecosystem evolve. Angel investment has become more professional, funding round sizes have increased, and so have the size of businesses angels invest in.
“We have developed the Delta Fund to match the maturity of the UK angel investment ecosystem. The Delta Fund will provide access to more capital with reduced process from us, with the knowledge that the backing of sector-smart angel investors is the best validation that an early stage business can have and gives businesses the best chance of success.”
