NuFund’s 2023 Annual Fund Report: Strategic Investments and High-Impact Exits Highlight Success
July 23, 2024 – San Diego, CA NuFund Venture Group, a new wave of angel investors with a venture fund model investing in technology leaders proudly announces the successful full deployment of its 2023 Annual Fund, showcasing its unique fusion of angel investing and venture capital.
NuFund Venture Group stands out in the early-stage investment landscape with its innovative “Venture Group” fund model, which combines the strengths of both angel investing and venture capital. Born from the realization that early-stage startups needed more guidance and support, NuFund leverages the collective expertise of experienced investors to bridge this gap, fostering innovation and driving growth. This model allows investor members to raise and deploy a collective Annual Fund, while still having the flexibility to add their own investments, thus harnessing the best of both angel and VC worlds. With 350 investor members, NuFund provides the flexibility and engagement typical of angel investing alongside professional due diligence, large checks and strategic guidance akin to venture capital.
“NuFund has been an incredible partner,” said Kate Dilligan, CEO of Cooler Heads, a portfolio company. “Their support extends beyond financial backing to hands-on assistance from their team, which has been invaluable as we enter new phases of growth. Their excellent reputation has also helped attract other investors. As a San Diego-based company, we are proud to have them on our cap table.”
NuFund’s distinctive model has proven highly effective, with notable successes in 2023, positioning it at the forefront of early-stage investment. The group’s dedication to fostering emerging technology leaders has resulted in impressive performance metrics and significant impact on the entrepreneurial ecosystem.
Key Highlights of NuFund’s 2023 Annual Fund Report:
Robust Investment Strategy: The NuFund 23 Annual Fund invested $5.6 million across 17 companies over 13 months. This diversified portfolio spans verticals such as AI, pharma, medical devices, cleantech, healthtech, and B2B SaaS
Life Sciences Focus: 82% of investments were directed towards life sciences and healthtech companies, reflecting a strong thematic focus compared to the previous year’s 63%. Notable investments include startups in medical devices, therapeutics, diagnostics, and healthcare IT.
Early-Stage Investments: The fund showed a strong skew towards earlier-stage deals, with 59% of investments in pre-Seed to Seed rounds, compared to 31% in the NuFund 22. This focus supports the growth of nascent technologies and innovative solutions|
Follow-On Investments: NuFund 23 made follow-on investments in 35% of its portfolio companies from previous funds, demonstrating strong ongoing support and confidence in the growth potential of these businesses.
Geographic Distribution: Nearly half of the investments (47%) were in San Diego-based startups, with additional investments spread across California and other regions, promoting regional economic development in one of the most robust and fastest rising startup economics in the country.
“At NuFund, we leverage the deep expertise and strong networks of our members to drive impactful investments in early-stage startups. Our model not only allows for meaningful engagement and support but also ensures that we can make faster, smarter investment decisions,” said Heather Slotnick, Board Member at NuFund Venture Group. “We are also committed to increasing diversity, both within our investor members and our portfolio companies, by actively supporting female founders and underrepresented groups.” she continued.
100th Investment Milestone:
NuFund recently celebrated a significant milestone, achieving its 100th investment across the first six Annual Funds. This milestone underscores NuFund’s commitment to supporting innovative startups and driving economic growth. “Reaching our 100th fund investment is the result of the hard work of our members and the faith in both our members and company founders who realized that there was a better way to quickly fund the strongest early stage companies. We are very excited about both the quality and diversity of our 17 portfolio companies in NuFund ,” said Dean Rosenberg, Co-Fund Manager of NuFund Venture Group.
Notable Exits:
NuFund Venture Group has achieved significant successes with several notable exits already realized within its Annual Funds, underscoring the effectiveness of its investment strategy. Among these, DTx Pharma was acquired by Novartis for $1 billion in 2023, marking a major milestone for the portfolio. Other significant exits include Habitu8, a Hollywood-style cybersecurity training startup acquired by Arctic Wolf to enhance its cybersecurity education and training offerings; and Paradigm Diagnostics, a precision medicine company specializing in comprehensive cancer testing, acquired by Exact Sciences to improve personalized treatment approaches. These exits highlight NuFund’s ability to identify and nurture high-potential startups, delivering highly competitive returns for investors and driving forward innovation in key industries.
About NuFund Venture Group
NuFund Venture Group represents a new wave of angel investors, pioneering a novel fund model focused on emerging technology leaders. NuFund was formerly known as Tech Coast Angels – San Diego (TCA-SD), and the organization is one of the largest, most active, and most successful early-stage investor groups over the past 20+ years. We continually strive to foster a culture that is friendly, innovative, engaging, rewarding, and fun for all stakeholders. Our mission is to be the BEST place for the BEST entrepreneurs to raise venture funding. For more information, please visit http://www.nufund.com
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