SV Angel Heads Back to Its LPs in Search of $40 Million

SV Angel is in the market for a fresh $40 million, according to an SEC filing first spied by TechCrunch.

The San Francisco-based venture firm – which was founded by Silicon Valley’s “Godfather” of angel investing, Ron Conway, but today is run actively by former Googler David Lee – lists only Lee on the new Form D. The filing says that first sale has yet to take place.

SV Angel raised its last fund, a $20 million vehicle, in 2010. The outfit usually makes bite-sized investments in large numbers of nascent startups, for what amounts to roughly three new startup stakes per month, Lee has said publicly.

While SV Angel has backed plenty of unfamiliar names, it holds its fair share of rising stars, too, including Airbnb, Path, Hipmunk, ZocDoc, and Foursquare, which SV Angel has backed several times, participating in both its Series A and B rounds and, this March, buying up employee shares as well.

Conway was also among the many angels who participated in Twitter’s $5 million Series A round in the summer of 2007.

If Conway has mostly handed over the day-to-day deal-making to Lee, he seemingly remains very focused on ensuring his startups enjoy the conditions they need to prosper.

Toward that end, Conway has become highly involved with San Francisco city government over the last year, contributing $150,000 of his own money last fall toward the election campaign of San Francisco’s newest mayor, Ed Lee, and getting much of Silicon Valley to join him in his push to get Lee into office. Famously, several weeks before the election was held, Conway invited 150 Bay Area celebrities over for a rooftop deck party at his Pacific Heights home, including now Yahoo CEO Marissa Mayer, Twitter co-founder Biz Stone, and entertainer Once there, the guests were asked to participate in a video that endorsed Lee, which many of them good naturedly agreed to do.

Mayor Lee has since worked closely with Conway, who hasn’t been shy about reaching out to City Hall when one of his companies needs its help. As the San Francisco Chronicle pointed out a few days ago, for example, Lee supported the payments company Square – another SV Angel portfolio company – when the city’s Municipal Transportation Agency suggested that taxi drivers might have difficulty using its technology. Lee won.

In fact, the Chronicle recently put in a public request for all e-mails between Conway and Lee or senior members of Lee’s staff. What they showed, says the paper, is that “the angel investor is in frequent contact with City Hall and that his missives – riddled with all capital letters and lots of exclamation points – carry significant weight.”

Image: Courtesy of SV Angel

Find new deal opportunities, super-charge your fundraising efforts and track top managers with VCJ. Get your FREE trial! Or subscribe now!