Mid Atlantic Bio Angels Introduces “Sidecar Fund” for Non-Members to Participate in MABA Investments
NEW YORK, Jan. 29, 2019 (GLOBE NEWSWIRE) -- Mid Atlantic Bio Angels (MABA) announced today that it has formed a “sidecar” fund (https://sidecarfund.bioangels.net/) allowing accredited investors who are not MABA members the opportunity to co-invest with MABA members, without the requirements of membership. This fund will allow MABA to more substantially participate in funding efforts, while allowing select non-members to benefit from MABA’s investment activities.
The minimum contribution to the fund will be $100,000 and the maximum allowable investment by any person will be $500,000. The fund will be limited to $5 million in size and is only open to accredited investors.
The fund’s investments will be made in companies where MABA platform participants are investing, either individually or collectively and then, only if certain other criteria specified in the operating agreement are met, such as diversification limitations and a requirement that the fund must receive the same (or substantially similar) terms as those offered to the MABA members. If these conditions are met, the fund’s investments will be made automatically in a fixed ratio to the MABA investment in that company. Thus, the fund will be both passive and blind, as neither the fund investors nor the managing member of the fund will have any ability to influence the fund’s investment decisions, which will be entirely rules-driven. Fund investors will be advised of the fund’s investments after such investments have been made.
“MABA members devote a great amount of effort and expertise to screening, reviewing and selecting companies in which to invest their own funds – something that not many people have the experience to do,” said Yaniv Sneor, a MABA co-founder and president of Blue Cactus Consulting. “We wanted to find a way to allow people who are interested in life science investments, but who either do not wish to, or cannot, be active participants in MABA, to index our group’s investments. Basically, if MABA participants decide to invest our own money, and the co-investment rules are met, the fund will co-invest with us. This way fund investors gain investment access to proprietary opportunities vetted and validated by MABA members, while portfolio companies receive a potentially more substantial investment.”
About Mid Atlantic Bio AngelsMid Atlantic Bio Angels ( http://bioangels.net ) is a group of active angel investors, which meets in New York City monthly (except July and August) solely to hear from pre-screened early-stage life science companies. MABA members consist of individuals from up and down the East Coast, from Delaware to Massachusetts, with significant expertise and experience in the biotechnology, pharmaceutical and healthcare industries (including former and current corporate executives, physicians and Ph.D. scientists with product development backgrounds), successful medical entrepreneurs and analysts and investors focused on life sciences. MABA’s goal is to create an environment where the depth of investors’ knowledge coupled with the pre-screening of presenting companies can enhance the potential for meaningful investment.
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