December 20, 2012
A new angel group for investors under 40 was unveiled in DC this week, with members including Paul Singh of 500 Startups, Peter Corbett of iStrategyLabs, and Sean Glass of Acceleprise.
NextGen Angels aims to be “the most entrepreneur-friendly angel investors in the world.” While some firms string out the negotiation process, NextGen pledges to make a decision within 30 days after a startup presents to them. And if ten or more members invest, the other 43 are obligated to provide help and introductions (whether they invest or not).
On top of that, NextGen aims for simple deal terms and transparent communication. And, of course, they’ll tweet about their beloved portfolio companies and wear their t-shirts.
“They identify with entrepreneurs who work hard, and they’re all willing to work on behalf of the entrepreneurs that we invest in,” says founder Dan Mindus, also the investment director for the nonprofit Center for Innovative Technology’s GAP Funds. “We all have an interest in building the DC entrepreneurial community over the long-term.”
NextGen can lead investment rounds up to $2 million, and participate in larger rounds. Most of the startups they see tend to be DC startups in web, mobile, or SaaS, although they may invest in other locations and industries. As young investors, the NextGen Angels see themselves as more open-minded about innovative business models, like freemium services.
Mindus came up with the idea for NextGen at a planning meeting for a new angel group, where he was one of three attendees under 60 years old. The newly minted group started seeing startup presentations in the fall. Although they have yet to make a deal including ten or more angels, Mindus says one might be in the works right now.
Tech Cocktail’s CEO Frank Gruber and COO Jen Consalvo are also members of NextGen Angels.
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