RESEARCH TRIANGLE PARK – Startups in the Triangle have a new potential source for cash. Backers announced Thursday the launch of the RTP Angel Fund, saying they already have raised $3 million with $2 million more still being sought.

Backers include venture funds and high-profile individuals, including investment industry veterans Jan Davis and John Cambier who is the new fund’s administrator. Some 50 people are backing RTP Angel Fund, it said in the announcement.

Its Board of Managers includes:

  • Elaine Bolle
  •  Jan Davis
  •  Ashish Sagrolikar
  • Mark Friedman
  • Mary Musacchia
  •  Merrill Mason

“While there are several Triangle early-stage venture funds, initial investments in high potential start-ups still represent a significant opportunity,” the fund said.

Investments will range from $100,000 to $250,000.

RTP Angel Fund

Targeted startups are early stage (pre-revenue or initial revenue) companies that investors believe can quickly generate a “10x” return “within a reasonable time frame.”

Companies in the Triangle are the primary focus but firms elsewhere in North Carolina and southeast also will be up for consideration.

People associated with RTP Capital Associates, Triangle Angel Partners and IDEA Fund Partners helped create the new fund.

Cambier is chief financial officer at IDEA Fund.

Points of emphasis

RTP Angel Fund cited the following priorities:

  • Fill Unmet Needs: While there are several Triangle early-stage venture funds, initial investments in high potential start-ups still represent a significant opportunity. The Fund intends to make investments of $100K – $250K, serving as part of the critical first outside capital without requiring companies to take on more financing than they are yet ready to deploy.
  • Nurture Innovation: By offering mentorship, strategic guidance, and a large network of industry experts, the Fund aims to equip entrepreneurs with the tools needed to scale their ventures successfully.
  • Broad Industry Focus: RTP Angel Fund will invest in early (pre revenue or early revenue) high potential companies that have the capacity to deliver 10X returns within a reasonable timeframe. Investments will reflect the breadth of the member-investor experience base.
  • Expanded Investor Base: RTP Angel Fund members are a combination of new and experienced early stage investors. One of the goals is to expand the angel investment community with new investors. The Fund also wants to expand the engagement of underrepresented communities among both investors and entrepreneurs. The diverse expertise of the membership will help identify and capitalize on underrepresented opportunities. With women representing over 25% of its membership, the Fund is starting with a diverse investor base.

Note: This story has been corrected to clarify that people associated with three Triangle VC firms are involved with the new fund.