VentureSouth Angel Fund III LP
VentureSouth Angel Fund III LP is a company.
Active
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Financial History
Total Raised
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Valuation
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Leadership Team
Key people at VentureSouth Angel Fund III LP.
VentureSouth Angel Fund III LP is a company.
Key people at VentureSouth Angel Fund III LP.
Key people at VentureSouth Angel Fund III LP.
VentureSouth Angel Fund III LP is a $5 million "sidecar" angel investment fund managed by VentureSouth, an early-stage venture firm focused on Southeastern U.S. startups. Closed in 2019 at its maximum target with 82 limited partners (LPs), it automatically co-invests alongside active VentureSouth members when 10 or more invest at least $100,000 in a company, following an "index fund" approach for diversified angel exposure.[1][2][6] Its mission aligns with VentureSouth's broader goal of deploying capital and expertise to Southeastern startups, having already invested in 11 portfolio companies by closure (e.g., Zylö Therapeutics in SC, Spiffy in NC, Outdoor Access in VA) and planning 10 more, emphasizing scalable, capital-efficient ventures with product-market fit across industries.[1][2][8] This fund bolsters the Southeast startup ecosystem by channeling passive investor capital into high-potential deals, leveraging a network of over 550-600 angels to foster growth in underserved regions.[2][8]
VentureSouth Angel Fund III LP emerged from VentureSouth's evolution as a leading angel network, tracing roots to the 2008 Upstate Carolina Angel Network and expanding to over a dozen groups with 550+ investors.[2] Launched and closed in 2019 at a record pace in Greenville, SC, it built directly on predecessors: Fund I (2014, 18 companies) and Fund II (2016, 23 companies), refining the sidecar model where passive LPs (including 50+ newcomers and 30 returning from prior funds) gain automatic diversification without individual deal-by-deal decisions.[1][5][9] Key figures like Paul Clark of the General Partner highlighted its appeal for positive returns and Southeast focus, amid VentureSouth's rapid 2019 investment pace.[1] Incorporated in South Carolina (EIN: 83-1906477), it reflects the firm's growth from local angel groups to deploying $80M+ across 100+ companies.[2][6]
VentureSouth Angel Fund III rides the wave of Southeast U.S. startup growth, bridging capital gaps in regions like SC, NC, and VA where traditional VC is sparse, amid rising angel tax credits that boost investments by 18-32% and attract more angels.[1][4] Its timing capitalized on 2019's momentum, fueling "valley of death" survival for innovative firms (e.g., therapeutics, on-demand services) via industry-agnostic bets on tech-driven scalability.[1][2][8] Market forces like state incentives and post-2008 angel network expansion favor it, with ~1/3 of VentureSouth's SC deals qualifying for credits, amplifying local ecosystems without displacing organic investments.[4] The fund influences by democratizing access—passive LPs fund active angels' picks—growing Southeast's deal flow and exits, as evidenced by ongoing monitoring into 2025.[9]
With Q2-2025 portfolio reviews available and Funds IV-VI active, VentureSouth Angel Fund III is likely in harvest mode, focusing on exits from its ~21 investments amid maturing portfolios.[9] Rising Southeast tech hubs and angel incentives will shape its trajectory, potentially via successor funds emphasizing AI, biotech, or climate tech in scalable startups.[2][4][8] Its influence may evolve toward larger syndicates, deeper LP returns, and ecosystem leadership, sustaining VentureSouth's role as the U.S.'s largest angel network—proving the sidecar model's power to scale early-stage capital where it's needed most.[1][2]
