Angel Investors are engaged and accredited investors who can afford to trade illiquidity for the opportunity at a higher return through minority equity investments in seed stage companies with the goal of garnering significant double-digit returns over five (5) to seven (7) years.
The concept first became popular during the internet bubble of the late 1990s, and over the past ten (10) years, in an environment of very low interest rates and increasing regulation, has become a significant source of capital for early stage companies trying to grow to the point where they can gain access to venture, institutional, or debt capital.
To be done well, Angel Investing requires the ability of an investor to capitalize on their networks to get into the path of high quality deal flow and then to share in the wisdom of those networks to evaluate risks and make investment decisions.
Sorin Angel Capital is designed to give interested investors access to this asset class without requiring those prerequisites.
“Access to smart capital is the life blood of an early-stage company like ours. When we were raising our first round of capital, Jim and the folks at Sorin Angel Capital provided valuable insight into the process and have been a continued positive impact to our business and partnerships.”
Kurtis Minder, CEO, GroupSense
Sorin Angel Capital, LLC was formed in February 2013 by Managing General Partner James G. Koehr in order to formalize his Angel Investing philosophy and leverage this philosophy on behalf of his friends, his former Notre Dame and Darden classmates, and his many other business associates.
The idea was the result of an independent study project on private equity investment done while Jim was a student at the Darden Graduate School of Business at the University of Virginia with project partner Danica Elliott under the guidance of Finance Professor and former Darden Dean Robert Harris. Both Danica and Bob are currently investors.
Sorin Angel Capital, LLC became the Managing Member of Sorin Angel Capital Fund I, LLC, also formed in February 2013, and over the course of several months recruited ten (10) Members in order to make nine (9) investments over the next year. Sorin Angel Capital Fund II, LLC was formed in December 2013 and ultimately pooled eight (8) Members to make 12 investments in 11 companies between February 2014 and September 2015.
Sorin Angel Capital Fund III, LLC made a large single follow-on investment in a Fund I and Fund II portfolio company, and Jim Koehr is Fund III’s only investor. Sorin Angel Capital, LLC also maintains a portfolio of investments for Jim Koehr that includes another eleven (11) investments in ten (10) different companies.
Sorin Angel Capital Fund IV, LLC is the fourth in a series of Funds managed by Sorin Angel Capital, LLC. Like the previous Funds, this Fund is set up as a limited liability company where investors become Members with a share of units based on the pro-rata amount invested, independent of when the investment is actually made. Fund VI has twelve (12) Members and has a goal of making ten (10) to thirteen (13) separate minority investments in equity or convertible notes for seed stage companies that fall within the Fund’s investment philosophy. It is anticipated that these investments will be made over the next two (2) years with the goal that they will all exit within three (3) to seven (7) years.
An essential part of the risk mitigation strategy for Sorin Angel Capital is the affiliation with networks of other Angel investors who can share their deal flow, their due diligence efforts and their wisdom. Jim Koehr has become very active as a Member of the IrishAngels and the New Dominion Angels from which the majority of the investments for Fund IV are expected to come. Mr. Koehr also maintains strong relationships with affiliated groups such as Blu Venture Investors and Middleburg Capital Development with whom he facilitates deal syndications and shared deal sourcing.
Sorin Capital Funds is a family of Funds that also includes Sorin Real Estate Capital, LLC. Sorin Real Estate Capital was designed to pool funds from accredited investors to leverage Jim Koehr’s significant experience investing in multi-family residential real estate. After evaluating numerous deals during 2013 and 2014, Jim recognized that the very low interest rate environment has forced investors seeking higher returns into real estate, and this has driven cap rates to 6% and below. Even “value-added” opportunities often have cap rates today in the single-digits. Given this reality, then Sorin Real Estate Capital will reenter the market at a time when potential returns are more favorable to investors.
 An Accredited Investor within the meaning of Rule 501 of Regulation D promulgated by the Securities and Exchange Commission are those who self-certify that they have an individual net worth of at least $1 million exclusive of their primary residence or that they had an annual income in excess of $200,000 over the past two years, or had joint income with a spouse in excess of $300,000 in each of those years, and who reasonably expects to reach the same level in the current year.