Venture capital works that way, and many venture capital funds have early-stage investment branches. In a way, Y Combinator might even fall within this definiti

Venture capital works that way, and many venture capital funds have early-stage investment branches. In a way, Y Combinator might even fall within this definition, as they actually re-invest money raised from VC funds. I don't know how long you have to leave your money in a hedge fund, but I suspect VC is longer term at around 10 years. This isn't a direct scaling of angel funding though, as I get the impression that the relationship between startup and angel is much less formal than to VCs. Take all of the above with a grain of salt, as I've never received any sort of 3rd party investment, so I don't speak from experience.