Capital for the Courageous:
Investing in America’s Next Frontier
Capital for the Courageous: Investing in America’s Next Frontier
Capital for the Courageous:
Investing in America’s Next Frontier
The Time Is Now
The Time Is Now
The geographic distribution of venture capital in America is broken. For decades, capital has flowed to the same cities, the same ZIP codes, and the same circles. The vast majority of venture dollars still land in just a few coastal markets, even as founders elsewhere in the country build companies with equal, if not greater, grit, innovation, and potential.
It’s not a lack of talent. Entrepreneurs across Ohio, Kentucky, Michigan, and dozens of other states are building in the places they love, not because it’s easy, but because it matters.
What they need isn’t a relocation plan. They need belief. They need early capital. They need a community that meets them where they are, not one that forces them to prove themselves somewhere else.
In every underserved market exist vocal champions who believe in their region’s potential. Influenced and inspired by thriving ecosystems like Silicon Valley, they know the raw materials are present to cultivate vibrant startup communities. If you ask them what’s needed most, they’ll tell you ‘MORE’. More capital, more ecosystem participants, more intentionality, more attention to the founders building great companies… More Capital!
The funding gap exists at every stage in the capital continuum in these markets, but it is the formation stage, angel and pre-seed, that sets the overall tone and enables the development of a true ecosystem with sustained positive outcomes.
That is why the United States Angel Collective was born. Our mission is to help build robust angel communities in underserved states by activating both existing and new angels to be part of a dynamic community that believes in their state, backs high-potential founders, and proves that great tech companies can be built across the US.
The geographic distribution of venture capital in America is broken. For decades, capital has flowed to the same cities, the same ZIP codes, and the same circles. The vast majority of venture dollars still land in just a few coastal markets, even as founders elsewhere in the country build companies with equal, if not greater, grit, innovation, and potential.
It’s not a lack of talent. Entrepreneurs across Ohio, Kentucky, Michigan, and dozens of other states are building in the places they love, not because it’s easy, but because it matters.
What they need isn’t a relocation plan. They need belief. They need early capital. They need a community that meets them where they are, not one that forces them to prove themselves somewhere else.
In every underserved market exist vocal champions who believe in their region’s potential. Influenced and inspired by thriving ecosystems like Silicon Valley, they know the raw materials are present to cultivate vibrant startup communities. If you ask them what’s needed most, they’ll tell you ‘MORE’. More capital, more ecosystem participants, more intentionality, more attention to the founders building great companies… More Capital!
The funding gap exists at every stage in the capital continuum in these markets, but it is the formation stage, angel and pre-seed, that sets the overall tone and enables the development of a true ecosystem with sustained positive outcomes.
That is why the United States Angel Collective was born. Our mission is to help build robust angel communities in underserved states by activating both existing and new angels to be part of a dynamic community that believes in their state, backs high-potential founders, and proves that great tech companies can be built across the US.
Ecosystem Foundations
Ecosystem Foundations
From first principles, startup ecosystems are funnels with defined stages and expected attrition, much like a sales funnel. A large number of leads at the top narrows as they move from stage to stage toward conversion.
In venture backed startups, these stages are marked by funding rounds: Angel, Pre-Seed, Seed, Series A, Series B+, with attrition at each stage and only a small number of startups ultimately converting to the defining outcomes of large companies, great exits, and IPOs.
To improve bottom-of-the-funnel outcomes, we must focus on two things: improving conversion from stage to stage, and filling the top of the funnel with more quality opportunities.
Because startups take years to grow from angel stage to exit, the time to start filling the top of the funnel is now. An ecosystem can't expect significantly better outcomes if there isn’t intentional effort to increase top of funnel quality opportunities.
Within every USAC chapter, you’ll find teams laser-focused on solving this problem: identifying high-quality founders building the future and activating angel communities to ensure those founders receive the early capital they need to grow.
From first principles, startup ecosystems are funnels with defined stages and expected attrition, much like a sales funnel. A large number of leads at the top narrows as they move from stage to stage toward conversion.
In venture backed startups, these stages are marked by funding rounds: Angel, Pre-Seed, Seed, Series A, Series B+, with attrition at each stage and only a small number of startups ultimately converting to the defining outcomes of large companies, great exits, and IPOs.
To improve bottom-of-the-funnel outcomes, we must focus on two things: improving conversion from stage to stage, and filling the top of the funnel with more quality opportunities.
Because startups take years to grow from angel stage to exit, the time to start filling the top of the funnel is now. An ecosystem can't expect significantly better outcomes if there isn’t intentional effort to increase top of funnel quality opportunities.
Within every USAC chapter, you’ll find teams laser-focused on solving this problem: identifying high-quality founders building the future and activating angel communities to ensure those founders receive the early capital they need to grow.
The Underwriting Problem
The Underwriting Problem
Broadly speaking, when it comes to building robust angel communities in underserved markets, wealth is not the issue. Enough local liquidity exists that can be activated to dramatically increase available capital for startups. The bigger issue is underwriting.
Tech angel investing is unfamiliar and opaque to many accredited investors in these regions. Given the DNA of how their wealth was built, and the structural realities of this asset class, there is a lack of understanding around how to underwrite tech deals, and a natural skepticism that makes it’s much easier to say NO to angel investing than to become an enthusiastic YES.
From the high failure rate of startups to the long, illiquid timelines between investment and exit, shifting capital away from traditional cash-flowing (real estate) or liquid (public equities) assets is not an easy ask.
So why do it?
Venture capital is governed by asymmetric outcomes and the power law. Meaning, for any single investment the most you can lose is 1X your entire investment, but the potential gain is 10X, 50X, 100X+ (asymmetric outcomes), and that across a portfolio, only a small number of investments will deliver those results (the power law).
Silicon Valley today is the result of recycling these principles over the last several decades, where even through challenging market cycles, an innovation and wealth creation engine has been developed that is unrivaled.
The problem is that not enough investors in underserved markets have experienced the positives of asymmetric returns. Because once you experience them, allocating at least a small portion of your portfolio to early stage venture becomes a prudent thing to do for long-term wealth creation.
It is this understanding, and actualized returns that, over time, lead to thriving startup ecosystems. A flourishing ecosystem creates jobs, generates wealth, and uplifts communities. But as every ecosystem builder knows, the work is HARD — and it must be approached with a multi-decade view.
Broadly speaking, when it comes to building robust angel communities in underserved markets, wealth is not the issue. Enough local liquidity exists that can be activated to dramatically increase available capital for startups. The bigger issue is underwriting.
Tech angel investing is unfamiliar and opaque to many accredited investors in these regions. Given the DNA of how their wealth was built, and the structural realities of this asset class, there is a lack of understanding around how to underwrite tech deals, and a natural skepticism that makes it’s much easier to say NO to angel investing than to become an enthusiastic YES.
From the high failure rate of startups to the long, illiquid timelines between investment and exit, shifting capital away from traditional cash-flowing (real estate) or liquid (public equities) assets is not an easy ask.
So why do it?
Venture capital is governed by asymmetric outcomes and the power law. Meaning, for any single investment the most you can lose is 1X your entire investment, but the potential gain is 10X, 50X, 100X+ (asymmetric outcomes), and that across a portfolio, only a small number of investments will deliver those results (the power law).
Silicon Valley today is the result of recycling these principles over the last several decades, where even through challenging market cycles, an innovation and wealth creation engine has been developed that is unrivaled.
The problem is that not enough investors in underserved markets have experienced the positives of asymmetric returns. Because once you experience them, allocating at least a small portion of your portfolio to early stage venture becomes a prudent thing to do for long-term wealth creation.
It is this understanding, and actualized returns that, over time, lead to thriving startup ecosystems. A flourishing ecosystem creates jobs, generates wealth, and uplifts communities. But as every ecosystem builder knows, the work is HARD — and it must be approached with a multi-decade view.
Boots on the Ground
Boots on the Ground
The rise of markets like Ohio and the broader Midwest is not a new story. Visionaries like Steve Case began championing the ‘Rise of the Rest’ over a decade ago. Investors like Mark Kvamme and Chris Olsen left Sequoia Capital to launch Drive Capital in Columbus, Ohio, which is now a multi-billion-dollar VC platform.
But even more important than these headlines are the thousands of people living in cities like Cincinnati, Nashville, Louisville, and Detroit who work tirelessly every day to champion and build their ecosystems.
At the United States Angel Collective, our promise is to be true local partners - boots on the ground doing the hard work of ecosystem building. Vessel launched the Ohio Angel Collective in late 2023, and while there is still much to do, the impact across Cleveland, Columbus, and Cincinnati — and the state as a whole — is already tangible.
Now, Vessel is partnering with local champions to launch the Kentucky Angel Collective and the Michigan Angel Collective, the first two expansion states in the USAC vision.
We’re a startup ourselves, so there’s plenty of clunkiness in our systems that we’ll refine with time. But our mission is clear and our promises to local ecosystems are with resolve:
To Founders: You won’t find a team with more Founder/Market fit than us. We’re founders and operators who’ve lived the frustration of seeking early-stage capital in underserved markets… even to the point of shutting down companies, while know we have everything needed to compete against coastal peers who received funding. We have also endured enough to prove that category-defining technology companies can be built in places like Ohio.
We carry a chip on our shoulder to build robust ecosystems around you so you don’t have to leave the communities you love to find capital. And more importantly, to ensure you don’t give up on your belief in yourself as a tech founder because you lack local support.
In the business of investing, we will still say No to more founders than we say Yes to, as that’s the nature of the game. But in ecosystem building, we believe our work will ignite a flywheel, growing the number of tech investors willing to back you early.
To Angel Investors: Doing angel investing well takes a lot of work. From developing relationships with founders to the due diligence process, for most people the time and energy to build a portfolio of high quality opportunities is hard to justify, especially if you are unfamiliar with the asset class. Whether you’re a seasoned investor or new to tech, our mission is to do the heavy lifting for you.
Across states within the USAC we have a centralized research team operated by Vessel. We filter through all startups who pitch us and deliver institutional grade diligence memos to present you quality opportunities to invest in. Our process is based on our first principles thesis focused on the components of how technology companies actually create success in markets that ultimately displaces the status quo.
Additionally, we focus on a simple and seamless investment experience that allows you to build a robust portfolio of companies, whether you have $20,000 or $2 million a year to invest. Through our relationship with Sydecar, investing with us is efficient and simple.
Great technology companies are being built in your state. And the more early capital that can be provided to local founders, the more high quality opportunities will be developed over time.
To Ecosystem Partners: USAC does not enter markets as competitors to existing builders — we’re here as proponents and collaborators. Our goal is to be a connective tissue across each state, amplifying the needs and energy of startup communities.
Our greatest competition isn’t each other. It’s losing elite founders to the coasts due to their abundance of capital. We look forward to the day when oversubscribed rounds create fierce competition at the local level. That means we’ve won — together.
Until then, let’s partner to build the strongest startup ecosystems possible.
To Economic and Government Leaders: You must pay attention to your state’s startup communities. Support them however you can. Every industry is being reshaped by technology, and this transformation is accelerating with AI, robotics, and automation.
Wealth accrues to the companies building the future, and right now that epicenter remains in Silicon Valley. Just look at the massive personal wealth created in California over the past 30+ years.
If you lose your top tech founders because they can’t find local capital, you lose the potential wealth creation for your state’s founders, employees, and investors.
Early equity in successful startups is the greatest generator of wealth in our society. We are here, ready to partner — to share data, offer insight, and help you position your state for success.
The rise of markets like Ohio and the broader Midwest is not a new story. Visionaries like Steve Case began championing the ‘Rise of the Rest’ over a decade ago. Investors like Mark Kvamme and Chris Olsen left Sequoia Capital to launch Drive Capital in Columbus, Ohio, which is now a multi-billion-dollar VC platform.
But even more important than these headlines are the thousands of people living in cities like Cincinnati, Nashville, Louisville, and Detroit who work tirelessly every day to champion and build their ecosystems.
At the United States Angel Collective, our promise is to be true local partners - boots on the ground doing the hard work of ecosystem building. Vessel launched the Ohio Angel Collective in late 2023, and while there is still much to do, the impact across Cleveland, Columbus, and Cincinnati — and the state as a whole — is already tangible.
Now, Vessel is partnering with local champions to launch the Kentucky Angel Collective and the Michigan Angel Collective, the first two expansion states in the USAC vision.
We’re a startup ourselves, so there’s plenty of clunkiness in our systems that we’ll refine with time. But our mission is clear and our promises to local ecosystems are with resolve:
To Founders: You won’t find a team with more Founder/Market fit than us. We’re founders and operators who’ve lived the frustration of seeking early-stage capital in underserved markets… even to the point of shutting down companies, while know we have everything needed to compete against coastal peers who received funding. We have also endured enough to prove that category-defining technology companies can be built in places like Ohio.
We carry a chip on our shoulder to build robust ecosystems around you so you don’t have to leave the communities you love to find capital. And more importantly, to ensure you don’t give up on your belief in yourself as a tech founder because you lack local support.
In the business of investing, we will still say No to more founders than we say Yes to, as that’s the nature of the game. But in ecosystem building, we believe our work will ignite a flywheel, growing the number of tech investors willing to back you early.
To Angel Investors: Doing angel investing well takes a lot of work. From developing relationships with founders to the due diligence process, for most people the time and energy to build a portfolio of high quality opportunities is hard to justify, especially if you are unfamiliar with the asset class. Whether you’re a seasoned investor or new to tech, our mission is to do the heavy lifting for you.
Across states within the USAC we have a centralized research team operated by Vessel. We filter through all startups who pitch us and deliver institutional grade diligence memos to present you quality opportunities to invest in. Our process is based on our first principles thesis focused on the components of how technology companies actually create success in markets that ultimately displaces the status quo.
Additionally, we focus on a simple and seamless investment experience that allows you to build a robust portfolio of companies, whether you have $20,000 or $2 million a year to invest. Through our relationship with Sydecar, investing with us is efficient and simple.
Great technology companies are being built in your state. And the more early capital that can be provided to local founders, the more high quality opportunities will be developed over time.
To Ecosystem Partners: USAC does not enter markets as competitors to existing builders — we’re here as proponents and collaborators. Our goal is to be a connective tissue across each state, amplifying the needs and energy of startup communities.
Our greatest competition isn’t each other. It’s losing elite founders to the coasts due to their abundance of capital. We look forward to the day when oversubscribed rounds create fierce competition at the local level. That means we’ve won — together.
Until then, let’s partner to build the strongest startup ecosystems possible.
To Economic and Government Leaders: You must pay attention to your state’s startup communities. Support them however you can. Every industry is being reshaped by technology, and this transformation is accelerating with AI, robotics, and automation.
Wealth accrues to the companies building the future, and right now that epicenter remains in Silicon Valley. Just look at the massive personal wealth created in California over the past 30+ years.
If you lose your top tech founders because they can’t find local capital, you lose the potential wealth creation for your state’s founders, employees, and investors.
Early equity in successful startups is the greatest generator of wealth in our society. We are here, ready to partner — to share data, offer insight, and help you position your state for success.
Here for the Long Term
Here for the Long Term
Our aim is to embed each state’s angel collective into the very fabric of its startup ecosystem. Much about startup investing defies surface logic, particularly how ridiculously long it takes to go from founding to success. But without a doubt, it’s worth it.
It’s worth it for the dreamers and doers who want to build the future of industries in the state they love. It’s worth it for the wealth created for founders, teams, and investors. It’s worth it for the prosperity of local economies.
It is worth it to find the entrepreneurs in small town Ohio or Illinois who are crazy enough to believe they can change the world, and capable enough to actually make it happen.
We are the United States Angel Collective. We believe great technology companies can and should be built across America. Come create this future with us!
Our aim is to embed each state’s angel collective into the very fabric of its startup ecosystem. Much about startup investing defies surface logic, particularly how ridiculously long it takes to go from founding to success. But without a doubt, it’s worth it.
It’s worth it for the dreamers and doers who want to build the future of industries in the state they love. It’s worth it for the wealth created for founders, teams, and investors. It’s worth it for the prosperity of local economies.
It is worth it to find the entrepreneurs in small town Ohio or Illinois who are crazy enough to believe they can change the world, and capable enough to actually make it happen.
We are the United States Angel Collective. We believe great technology companies can and should be built across America. Come create this future with us!