Respected angel network, AngelHub, has stealthily relaunched as AngelHub Ventures (AHV) with new partners. This relaunch follows the buy-out of former company AngelHub by two of its angel investors, Michael Jordaan and Kevin Harris, taking the place of AH alums Keet van Zyl and Andrea Bohmert.
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We had suspected that AngelHub would move in a different direction after Jordaan left his position as FNB CEO to play in the startup investment space. Given that he’s always been one of AngelHub’s most active investors, this move makes sense. The former CEO was so excited he tweeted:
Can’t handle any more coffee invitations so we partnered with @AngelHubZA. Check http://t.co/eektEcb3Lz for the story.
— Michael Jordaan (@MichaelJordaan) February 12, 2014
According to founder-CEO Brett Commaille, the new fund is being established in order to keep up with the demands of the fast-changing technology and investor landscapes.
“When we started AngelHub at the end of 2011 we had a simple objective: to bring the promise and potential of South Africa’s startup business environment to the attention of experienced investors and facilitate this interest into real investment to grow these businesses. We’ve since seen the establishment of a number of new incubators and investment companies, and we believe it’s only the beginning.”
This means things will be changing somewhat at AngelHub HQ. A victim of its own model, AngelHub relied on a number of angels to raise money for one startup, which can lead to endless negotiations and slower deal flow. The new fund is changing that, allowing AngelHub to focus more on building companies rather than raising the funding, which it thinks “is sure to be a boost for the companies”.
However, the new fund does note that it will retain its ties with angels in its network for opportunities to co-invest or eventually investment in its fund.
Commaille reckons that the “growth and maturation of the local venture capital market over the past few years has created a space for a next tier of angel seed funds”.
“We always believed AngelHub would work best with its own investment fund. With Michael and Kevin Harris on board, we can now leverage our extensive network of local startups and our strengths in deal management and focus on what we’re best at — growing great local tech businesses.”
As part its of strategy, AngelHub Ventures hopes to connect startups with great investment potential by leveraging its relationship with companies such as Mxit and Multisource, giving startups access to the African continent and quick growth trajectory.
Van Zyl and Bohmert are currently in the middle of the sale of their own growth equity fund manager, Knife Capital, to Africa Dawn Capital.
In its two years of existence, AngelHub facilitated five different investments with the last two having just been completed. These last two deals included 13 different investors, including Jordaan.
