Accelerating Angels launches $2M Fund for Women Founders

Women-focused investment firm Accelerating Angels has achieved a major milestone with the closure of their inaugural investment fund and the increased provision of support for women as entrepreneurs and a key part of technology startups.

The organization, co-founded by Cindi Englefield and Mary McCarthy, is the first fund to focus on closing the longstanding gender disparity in venture capital investment. Even with a difficult fundraising climate in April, Accelerating Angels managed to raise its first $2 million fund, funded by 46 investors.

Englefield said the feat is proof of expanding understanding of the business opportunities women-led enterprises offer. Given the challenging investment environment, obtaining support for a first-time fund led by women was all the more important, she said.

The fund was started with the conviction that women entrepreneurs are good investment options. The firm found that research shows that women entrepreneurs yield more per dollar invested and sometimes even a higher ROI than male entrepreneurs. Accelerating angels is investing in the right firm with women founders that have solid business momentum and growth potential.

Key Highlights

• Accelerating Angels closes its first $2 million fund
• Invests $850,000 in nine women-led tech startups
• Plans a second fund to expand support for women entrepreneurs

The fund has invested some $850,000 into nine women-led technology businesses, from nonprofit administration to biotechnology. The firm has a specific investment strategy of identifying companies in which women have a leadership role and a 30% stake or more. It also favors companies that have proven themselves to be generating revenues and having market traction with the efficient management of capital.

There are several interesting companies in Accelerating Angels' portfolio, including Dasi Simulations, a healthcare technology startup creating patient-specific, AI-powered simulations for heart-valve surgeons. In 2023, Accelerating Angels provided $100,000 towards the company.

Teri Sirset is the founder of Dasi Simulations, along with Ohio State researcher, Lakshmi Dasi. Since inception, the company has accomplished significant regulatory milestones, such as FDA clearances in the U.S. and Medicare approval. The company recently raised a round and has raised $17 million to date.

It was often difficult for women entrepreneurs to get investment, especially when they were pitching to venture capital firms with mostly male leadership, Sirset said. She added that Accelerating Angels was the first investor to invest in the company, which helped them in their early growth.

In addition to startup investment, Accelerating Angels is also on a mission to get more women involved in the investment process. Englefield highlighted the need to reach new investors and provide greater opportunities for women to be active venture investors.

While it expands its network and looks for new promising startups, it is already developing its second investment fund. Accelerating Angels is looking to expand its portfolio to include additional 12-15 companies, helping to further support women-led innovation.

While capital formation is still difficult for female founders, Accelerating Angels is attempting to shift the tide with a more female-focused investment approach and its efforts to foster a more inclusive startup ecosystem.