In our talks with investors, it seems that angels are less interested in investing in venture funds. Mostly the reason seems to be that these angels are typically experienced professionals in certain areas and have enough knowledge to go direct into companies. They work with those companies, lending their expertise and contacts and help them grow, and later reap the rewards.
For them, there isn't a good reason to give up the carry that is paid to venture fund managers, or the fees paid yearly. They can get involved with the company and invest directly to gain the full reward of an exit.
Makes total sense for angels, but tough for us. This could mean many angels and angel networks will not be interested in us. Already I have contacted Band of Angels in Silicon Valley and they never look at venture funds....
