We get a lot of questions about the difference between doing an investment as an angel group versus running a fully managed venture capital fund. Many people assume that angel groups are simple to operate while venture funds are more complex and deserving of higher fees and carry.
In fact, nothing could be further from the truth.
At Rockies Venture Club (RVC), we manage both angel group investments and venture capital funds, so we have a clear view of what really goes into each. To put it simply:
TL;DR: Running an angel group deal takes fifty-four (54) distinct tasks, while executing a comparable investment through a venture fund takes only eighteen (18).
That’s a 300% difference in effort. So what accounts for it?
1. Community Engagement
Angel groups thrive on community engagement — connecting, educating, and learning by doing. The wisdom of crowds is a real advantage, but it comes with significant operational overhead. Every step of the investment process must be coordinated with live events, communications, and member engagement.
At RVC, we run three active tracks — tech, life sciences, and cleantech — each with its own screening and diligence committees. Every track involves:
- Reviewing applicants and selecting pitch candidates
- Preparing and distributing information packets
- Coordinating committee meetings and feedback
- Scheduling pitch events, conferences, and investor forums
- Handling logistics, marketing, and post-event follow-up
And that’s before we even get to due diligence. RVC investors and subject-matter experts contribute to the diligence process, which is educational and rewarding — but assembling and editing dozens of contributions into a single coherent report can take far longer than conducting the research internally.
2. SPV Management
Every angel group deal typically requires setting up a new Single Purpose Vehicle (SPV) — complete with a new company, EIN, bank account, legal agreements, and compliance documentation.
While a fund performs many of these same functions, it does them once — at formation. Angel groups must repeat them for every deal. That can mean 20–30 times the administrative workload.
RVC goes even further by helping SPV members track and claim tax credits, manage follow-on investments, and stay up to date on portfolio company developments, recapitalizations, and warrant exercises — each of which adds more operational complexity.
Why Do It?
So why do we take on this much work? Simple: we love teaching, sharing, and building community.
We believe investors make better decisions together — and that Colorado’s innovation economy thrives when people collaborate. Yes, sometimes it feels like “cat herding,” but the payoff is immense: an educated investor base, smarter startups, and more local job creation.
Venture Funds: Focused and Streamlined
Venture capital funds have their own heavy lift — managing deal flow, due diligence, compliance, and communications — but the process is more centralized. The professional management we provide to Limited Partners (LPs) is deliberate, structured, and efficient, without the constant back-and-forth of engaging hundreds of individual investors on every decision.
At Rockies Venture Fund, we serve investors who want professional management and portfolio diversification without the time commitment of active angel investing.
Some investors love diving into the details and participating hands-on. Others prefer a more passive, yet still impactful, role. Both paths are valuable — and that’s why we offer both.
Final Thoughts
We don’t choose between angel groups and funds because one is “easier.” We do both to give our members options — the ability to engage at the level that fits their time, experience, and goals.
We’re deeply grateful for our active RVC members and Limited Partners alike. Together, they make it possible to mobilize Colorado’s capital, foster innovation, and build a stronger startup ecosystem for everyone.
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