Description
SideCar Angels is a Boston-based angel investment group that syndicates accredited investors’ capital to back early-stage startups alongside top-tier angel groups and venture capital leads — effectively “riding sidecar” on deals where a lead investor has already cleared initial diligence.
Seed / Early Stage: SideCar Angels typically invests in early institutional rounds once a lead investor (angel or VC) has signed a term sheet.
Series A: The group may participate in some Series A financings as part of co-investor syndicates.
Typical Investment Size: SideCar Angels generally writes $100,000 – $1,000,000 checks per company, depending on the round size and how much capital its members agree to deploy.
Equity Ownership Taken:
• SideCar Angels does not publish a fixed percentage of equity it always takes — like most angel groups, the specific equity share is negotiated on a deal-by-deal basis with the startup and other participating investors.
• In the context of seed and early institutional rounds, industry norms suggest that individual institutional angel investors often end up with meaningful minority stakes (~5 %–15 %) for their participation when they co-lead or materially contribute; the total dilution to all investors in such rounds frequently falls in the ~10 %–25 % range. (This is a general market norm, not a SideCar Angels published rule.)
• SideCar’s role is typically co-investor rather than lead negotiator, so its equity position depends on valuation, total round size, and lead terms already agreed with founders and the lead investor / VC syndicate.
Equity Structure: Investments are usually done via priced equity, SAFEs, or convertible instruments consistent with early institutional rounds; governance rights like board observer or director seats are negotiated as part of those terms on a case-by-case basis.
Submission Method: Startups generally engage SideCar Angels through the group’s website or via introductions from ecosystem partners, angel leads, or VCs; SideCar typically participates after a term sheet is in place with a lead investor.
Investor Membership: Accredited investors join by committing to invest (e.g., at least ~$10,000/year) and participate in group decision meetings.
Eligibility
Sector Focus: Broad sectors including technology, healthcare, biotech, consumer, and others where scalable early-stage ventures are present.
Geography: Primarily U.S. companies (especially those accessible to SideCar’s network and lead investor partners).
Stage: Seed to early institutional (Series A) with a signed lead term sheet in place.
Process
Lead Confirmation: Deals are sourced where a lead investor (angel group or VC) has already done primary diligence and signed a term sheet.
• Quick Evaluation: SideCar members review the opportunity and decide rapidly to join, often within days.
• Co-Investment: SideCar commits capital on the lead’s existing terms — it does not require fresh extensive diligence or term renegotiation.
What an Applicant can Obtain
Strategic Capital: Additional institutional angel capital typically in the $100K – $1M range alongside other investors.
Efficient Close: Because SideCar relies on existing lead diligence and terms, startups can close capital quickly (sometimes within ~48 hours of SideCar interest).
Network & Expertise: Access to a broader angel ecosystem and introductions through SideCar’s member base to other capital and partners.