With $4.25M Seed Fund, Alliance of Angels Looks to Take Northwest Investing to “New Level”

Seattle-based Alliance of Angels officially announced its new $4.25 million seed fund this week, which it will invest in early-stage companies alongside individual investors. The Alliance of Angels’ Marty Smith first revealed the fund at the Technology Alliance’s annual luncheon in Seattle on May 1.

“AoA continues to actively invest in great local companies and now will be able to put even more money to work,” said Dan Rosen, chair of the Alliance of Angels, in a statement. “With this additional vehicle available to benefit both investors and entrepreneurs, AoA is poised to take angel investing in the Pacific Northwest to a new level.”

Alliance of Angels said it would make seven to 10 investments per year with the new fund, over a period of three to four years. To qualify for investment, startup companies need to make it through the Alliance of Angels’ screening process, as well as secure at least $100,000 in funding from two or more AoA members. Eligible companies will be vetted by Peter van Oppen of Trilogy Partnership, Tim Porter of Madrona Venture Group, and angel investor Gaylord Kellogg.

The new fund, which is managed by executive director Emer Dooley of the University of Washington’s Foster School of Business, should help bolster the Alliance of Angels’ recent track record. The angel organization has made 80 investments in the last two years, and five companies it has funded were acquired in 2008: Cleverset, Shelfari, Insitu, SnapIn Software, and Coffee Equipment Company.

Incoming Alliance of Angels program director Greg Huey, who started in his new position last week, said the seed fund “will have a lasting, positive impact on the entrepreneurial ecosystem of our region.”

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