GREENVILLE, S.C., June 26, 2014 /PRNewswire/ -- The South Carolina Angel Network (SCAN) had a first closing on its new angel investment vehicle, the Palmetto Angel Fund, on Friday, June 20th. The Palmetto Angel Fund is the first early stage capital fund of its kind in South Carolina. The Fund will remain open to new investors until this fall.
SCAN followed the closing of the Fund by making its first two investments, in Greenville-based Proterra, which designs and manufactures zero-emission vehicles, and in OBMedical, a Gainesville, FL-based company that is creating a new generation of fetal and maternal monitoring devices.
The Fund provides a unique opportunity for individuals and institutions to participate in a committed capital fund that co-invests in the startup companies funded by SCAN angel groups. Currently, those groups include the Upstate Carolina Angel Network in Greenville, the Capital Angels in Columbia and the Tiger Angel Network affiliated with Clemson University – with more groups under development across the state. The additional capital made available through the Fund will significantly increase the ability of the angel groups to support the statewide startup community.
The fund is open to anyone who meets the accreditation standards established by federal regulators (generally either $1 million in net worth excluding the primary residence or $200,000 in income over the last 3 years). The fund seeks to generate attractive risk-adjusted returns for investors, and its investments may be eligible for the new "High Growth Small Business Access to Capital Act," which provides a 35-percent state income tax credit to angel investors who back qualified South Carolina startup companies.
"We are proud to be SCAN's first investment in South Carolina," said Proterra CFO Dave Rich. "For SCAN to have the ability to help support and grow start-up companies in a state with very little early stage capital is a really positive thing for our economy. It makes being an entrepreneur here more enticing and is really critical for building a sustainable entrepreneurial ecosystem."
"There is no other fund like this in South Carolina," said Paul Clark, General Partner of the Fund and Director of SCAN. "We're offering our investors an unusual opportunity to invest in startup companies. We have a definite preference for South Carolina, but investments in nearby states allow our investors to access the best startups in the Southeast. It's an exciting time for SCAN—we closed our first fund, invested in our first two companies, and launched a new angel group in Columbia - and now we're looking toward the future in eager anticipation of what lies ahead."
To learn more about SCAN and their latest investment opportunities, visit http://www.scangelnetwork.com/.
ABOUT THE SOUTH CAROLINA ANGEL NETWORK
The South Carolina Angel Network is dedicated to improving the infrastructure for the entrepreneurial economy in South Carolina, with a particular focus on early stage capital formation. SCAN is based in the Next Innovation Center and supports multiple angel groups across South Carolina, including the Upstate Carolina Angel Network in Greenville, the Capital Angels in Columbia and the Tiger Angel Network affiliated with Clemson University. For investors, SCAN's affiliated groups provide access to high quality deal flow, an efficient process to manage investment opportunities, and due diligence expertise from some of South Carolina's most successful business leaders. For startup companies, SCAN offers access to highly scarce equity capital and mentoring and expertise from its investors. For more information on SCAN visit http://www.scangelnetwork.com/.
Molly Gunson | Smoak Public Relations
SOURCE South Carolina Angel Network