What is Red Bear Angels?

Red Bear Angels is the group of individuals who invest in and support companies founded or led by Cornell University alumni, faculty, and students. 

Red Bear Angel Group is led by Cornell alumni and is not officially sponsored or endorsed by Cornell University.

What was the impetus behind Red Bear Angels?

 

Red Bear Angels was built both to seamlessly connect Cornell entrepreneurs with the alumni who can be most helpful to them and to enable investors to access a unique set of differentiated deal flow.

Cornell University is home to the country’s best engineering program attached to the widest set of vocationally focused niches – from hospitality and agriculture to ergonomics and labor relations. Now with the Cornell Tech campus in New York City, there is no better time to double-down on Cornell talent and innovation.

What’s more, Red Bear Angels is able to capitalize on the talented executives who have an allegiance to their alma matter by leaning on them for diligence and portfolio support.

Who are the key stakeholders?

The Investment Team is comprised of a full-time Managing Partner, part-time Associates, and a Board of Founding Investors and Advisors who have been carefully recruited based on their seasoned investment and entrepreneurial expertise.

How can I get involved in RBA?

Click here to sign up for any of the following:

  1. Become a member. Join us for intimate dinners or events across the country with other successful Cornell alumni. You will also have the ability to participate in any RBA deal. $1,000/year for individuals and $5,000/year for corporate members.
  2. Invest in the RBA Fund. The RBA Fund is a vehicle created for those who want to invest in RBA’s strongest opportunities, but passively, relying on the diligence of professional investors and domain experts.
  3. Join the network. Sign up for the newsletter to stay up to date on the goings-on in the RBA network. You will not have access to deal flow but we might call upon your expertise to support Cornell founders. Free.

What is RBA’s sector & stage focus?

Red Bear Angels primarily invests in the late seed stage with an average check size of $250,000, including an average $50,000 from each of five investors per deal. Funding stages and check sizes may vary depending on the opportunity.

RBA is sector agnostic. For each investment, the team leverages the diversity of domain expertise among Cornell alumni for both diligence and meaningful value-add post-investment.

 

What is your AUM/Committed capital?

RBA currently sources capital from our active and passive investor network on a deal-by-deal basis.  

How are deals structured?

Red Bear Angels does not take a management fee. The investment team realizes a 15% carried interest fee net of preferred proceeds to investors.

What affiliation with Cornell is required for an investment to be considered?

Startups must have a founder, board member, executive, or investor that is a graduate, student, or faculty member of Cornell.

What is RBA’s investment decision process?

Entrepreneurs are encouraged to share their information on Proseeder here and notify meghan@rbangels.com after doing so to begin the Diligence Process. The process includes a 30-minute screening call, after which RBA can source a Deal Lead. Every month on the third Thursday at 3pm ET, two companies are selected to present to the network in a webinar. Following the webinar, members of Red Bear Angels have up to two weeks to hold any follow up diligence discussions and indicate their level of interest in investing in the round. 

When will RBA *not* participate in an opportunity?

If only one member has made a commitment to a given opportunity, RBA will recommend that he or she invests directly into the company, outside of the RBA investment vehicle.

What are RBA’s term sheet guidelines?

RBA seeks market standard, founder-friendly terms. We don’t need to lead rounds, but we can. Convertible notes, SAFEs, and preferred equity rounds are all welcome. RBA may request an active board or board observer role in circumstances where it’s appropriate.

Any tips for this process?

Yes! RBA has put together some best practices for you, here.