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 founded by Board of Trustee Emeriti alongside alumni Venture Capitalists to both provide a resource to Cornell entrepreneurs and enable investors to access a unique set of differentiated deal flow.

Cornell University is home to a world class engineering program and the widest set of vocationally focused academic disciplines – 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.

Members of Red Bear Angels can capitalize on these startup investment opportunities by leaning on a broad network of alumni for diligence and portfolio support.

Who makes up Red Bear Angels Management?

Red Bear Angels Management is comprised of a full-time Managing Partner, part-time Associates, and an Advisory Board that has 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. Members have access to deals and club events. Monthly events include cocktail receptions and luncheons featuring candid talks by notable entrepreneurs and investors. The annual membership is $1,000 for individuals and $5,000 for corporate teams.
  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 initial check size of $205,000, including an average ~$40,000 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. [Think: 0 & 15 rather than 2 & 20.] 

It is required to be a dues-paying member in order to participate in a deal. You can become a member, here.

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?

  1. Entrepreneurs are encouraged to submit their information here and notify meghan@rbangels.com after doing so to begin the Diligence Process.
  2. We will then reach out to set up a 30-minute introductory call with Red Bear’s Managing Partner and oftentimes our partners at Big Red Ventures. Red Bear Angels will take to broader RBA Network to gauge candid insights from those with relevant domain expertise.
  3. Our Managing Partner then invites two companies to participate in our monthly Startup Showcase.
  4. Members of RBA then have up to two weeks to indicate if they are interested in participating in either or both of those two investment opportunities.

How are RBA Deals presented to Members?

RBA Deals are presented to members at the monthly Startup Showcase.

The monthly Startup Showcase is on the last Thursday of every month at 3pm ET via webinar. It is open to all dues-paying members.

Two companies are selected to present at each Startup Showcase.

Companies are notified if they have been invited to present on the Sunday preceding the Showcase, and the companies are announced to RBA members via email on the Monday prior to the Showcase.

Following the webinar, a recording of the webinar is circulated, and members 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.