Mike Maples Raises New Fund, Dave McClure Next in Line

A couple of notes from the world of institutionalized super-angels, via filings with the SEC:

First up is Floodgate, the firm formerly known as (Mike) Maples Investments. It has raised $73.5 million for its third fund, which more than doubles the $33 million raised for Fund II back in 2008.

Next we have Dave McClure, who is raising up to $30 million for a fund called 500 Startups (which would work out to $60k per startup — but I’m thinking it’s more a play off the name of his blog). The filing does not indicate any commitments yet, nor any partners beyond McClure…

As an aside: I last saw both Maples and McClure at a Silicon Valley event hosted by TheFunded back in February. The basic explanation for raising institutional funds was as follows:

  • Angels can usually move quicker than can traditional VC firms, due to more centralized decision-making (i.e., one guy). That gives angels an advantage, since startups need cash now.
  • In many cases, however, a single angel won’t do. You need a syndicate of angels in order to size a round properly. That involves lots and lots of phone calls, thus reducing the “time” advantage.
  • An institutional fund either eliminates — or at least reduces — syndication needs.