What is an angel fund?
An angel fund is a pooled investment vehicle that aggregates capital from multiple angel investors (often 10–50 LPs) under a formal partnership or LLC structure, with a small lead investor or management team making investment decisions. Angel funds professionalise individual angel investing by offering structured diligence, portfolio construction and follow-on rights.
Angel funds differ from angel groups (informal networks of individual angels who each invest separately) and from traditional VC funds (much larger committed capital, professional GPs, longer fund lives). Many angel funds are organised under SEC Regulation D or as Special Purpose Vehicles (SPVs).